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Will Globalization Work?

2008-05-29

Globalization is an idea invented by businessmen for business. They all thought it would be great to be able to produce goods overseas at a cheaper price then ship it back to the US for a huge profit. Unfortunately for them though, the businesses who decided to embrace globalization by building manufacturing plants overseas have done so without ever foreseeing the hidden costs.

The main reason globalization is failing is because of the increased gas prices which has caused the cost of shipping to skyrocket. Even though you may have been able to make a bottle of Vaseline for 25 cents in China, the cost of shipping it back to the US and abroad could very well be $5 USD just for that one bottle. Im sure you can clearly see by now why shipping and energy prices is a key part of globalization.

There's also lots of other hidden costs that add up when producing products overseas. One of these problems never encountered before until globalization is contamination. Now businesses who embraced globalization are learning its not so cheap afterall. They now have to hire a security force to protect against terrorists and a lab to test their product for quality assurance to even attempt to solve contamination risks.

In my view globalization has backfired. Maybe its time to listen to those who have lost their jobs because of manufacturing plants moving overseas. Maybe nows the time to bring those jobs back to the US. I don't think you can make a profit any other way how oil prices are.

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