The global economy / by kevin murray

So many of the common products that we utilize in our lives, come either directly from foreign nations, or contain some components or input from foreign nations.  So too, significant markets of many of our biggest corporations are foreign, and those products being sold are in many instances, containing components that are foreign in origin and/or foreign in some aspect of the manufacturing process. 

 

All of the above basically means that mankind has recognized the wisdom of utilizing people and materials that are available for such, all over the world, which makes for a far more efficient and effective way to bring products that people desire to the market; of which, some of these products would not be able to be manufactured or created, without that ability to utilize foreign involvement. 

 

As might be expected, when it comes in particular to businesses, that once any company becomes dependent upon things such as cheap foreign labor being available, or the need for the sourcing of product to come from foreign nations, or any these various forms in combination, of which, to lose that access, would thereby leave these corporations quite vulnerable to having their ability to create profitable product, reduced or truncated, than those companies will as a matter of course, want to be in the position, to the degree that such is possible, to prevent these very things from happening.  Additionally, once market doors are open so that exports can be made into foreign countries, corporations have a strong vested interest that those doors shall ever remain open, and that they not be barred ever, especially by unexpected or unwarranted tariffs, or unanticipated foreign governmental actions, of which if any of these adverse things should occur, corporations would thereupon have a strong desire of wanting to see such, overturned.

 

The fact that so much trade is global both in its sourcing as well as in the selling of such, would appear to be one of those things that is beneficial for all parties involved; for consumers become the beneficiaries of products that are of more value to them at a cheaper price point, as well as corporations are able to sell more product and typically do so at a higher gross margin.  On the negative side, though, is the fact that domestic industries that utilize a labor component in which that labor element is not competitive in contrast to foreign nations, puts not only intense pressure upon those domestic wages being maintained, let alone increased, but also intense pressure upon the continuance of even gainful employment.  Further, those corporations that are dependent upon sales to foreign nations and/or foreign sourced components and cheap labor, will not look kindly to seeing such, disrupted.

 

This thus means that on the one hand while global connections makes for nation-states realizing the obvious benefits of trade routes being continuously open, it would also be indicative that strong and powerful corporations prefer to work almost exclusively within domains in which once a deal is structured, it is held inviolable, and are not terribly interested in democratic institutions that could possibly upset that status quo.  Additionally, major corporations also find especially pernicious, a given country’s revolutionary actions, unless such is instigated or sponsored by the nation-state the corporation is located in.

 

So that, a world filled with global trade and global connections, is a world that probably cedes more control to corporations and their profit interests than is prudent, which may not be as benign as it might initially appear, for money and the lust for ever increasing profit and sales, tends to lead to decisions that favor the few and connected over the many.