Labor Day Edition
Financial and Societal Consequences of Globalization
The global economy continues to be in the forefront of the media. In a recent Wall Street Journal article, U.S. Firms Move Abroad to Cut Taxes, several U.S. companies are profiled as they move their headquarters abroad to save on taxes. This particular cost cutting strategy impacts consumers as lower taxes for a corporation leads to greater profits which can be used to stabilize consumer prices. Globalization has massive impacts on our economy and society at large, both good and bad.
Impacts of Globalization
Inexpensive clothing-I spend less on clothes than I did decades ago. I remember shopping with a friend in college and paying $30 for a sweater. Today, I can get a similar sweater, imported from abroad for $20 to $30 dollars. That?s no price increase in decades.
Affordable electronics-Increased international competition helps consumers in other areas as well. Buying electronics is relatively inexpensive, when compared with the past. When computers first came out, they cost thousands of dollars. I remember my first USB drive cost $70 for a fraction of the storage I can get for $10 today. Even basic calculators used to cost almost one hundred bucks.
Accessible?0ffshore savings rates?and Investing-?An individual can easily participate in internation banking?today, an activity that was quite cumbersome in the past. In fact, just log on to your discount brokerage account and purchase international currencies, stocks, and bonds with the press of a button. These types of opportunities grow both your financial opportunities as well as risks.
Knowledge is spread quickly and efficiently-?If there is a cure for cancer in Europe or Africa, it will be disseminated world wide, much more quickly than in the past. Of course this type of information transmission has a down-side as well. How to build a bomb, or spread a dangerous virus can also be communicated internationally to the detriment of society.
Legal collaboration-?The Positive Effects of Globalism, mentioned international communication as a way to break up global terror groups and bring criminals hoping to flee for safe haven, to justice. The law eventually caught up with Joran Van Der Sloot, the Dutch national accused of murdering Natalee Holloway. In the past, this murderer might have hidden in a safe haven getaway much more easily.
As with any evolution, there are positive and negative impacts. Look for financial advantages of globalization and prosper. I personally invest a large portion of our assets in international investments.
How does a global society affect you?
image credit; google images-management 22 wordpress
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