S., who is duly aware of their hardships and struggles. Again, there are many reasons why they are not given what they need to succeed (covert imperialism, ideological differences, etc.) but one of the main reasons is global overcapacity. If there are more countries producing goods and services the supply of those goods and services continue to increase. When supply goes up, and demand remains relatively unchanged (or static) one of the only ways to earn a profit is to lower costs (Judis, 2010). Lowering costs means a smaller profit margin. A smaller profit margin means, well, less money for the CEOs and shareholders.
One may think that this theory is a bit of a reach, that there is no conspiracy to retard the efforts of fledgling countries to take a power position in this new "flat" world (Friedman, 2005). And maybe they're right, there is no coordinated effort to do such a thing, it's just the way the system is set up. Either way, whether it's consciously done or unconsciously done, it's the way it is. The facts bear this out.
For starters, and to circle back to that Chinese proverb, why do countries in power continue to delivery fish, instead of curriculum on fishing techniques? Here is an excerpt, from an article regarding the ill effects of food dumping, that underscores this issue, "Food aid (when not for emergency relief) can actually be very destructive on the economy of the recipient nation and contribute to more hunger and poverty in the long-term. Free, subsidized, or cheap food, below market prices undercuts local farmers, who cannot compete and are driven out of jobs and into poverty, further slanting the market share of the...
People need look no further than their own homes to see the interdependence of world trade; no further than their neighborhoods to see the results of international migration and multiculturalism; no further than the news to see the causes and effects of global economics, ecology and ethnic conflicts. "While domestic debate continues over the nature of these connections, few can doubt their existence. As these connections increase, educators, utilizing a
The article further says that "Japan's grip on the industry has weakened and it is time that the world redesigns the whole supply chain. The article ends with the note that things could go on in a moderate scale for a while and then by the first half of 2012, Japan may come back to the state of overcapacity." (Mutschler, 2002) Analysis: In analyzing this article and the impact of a
European Union - Business in Europe European Union * Competitive advantages of a European area in a chosen Industry and Porter's Five Forces * Personal impressions and reflections on what was learned? The European Union is made up of several countries, and all these countries have one single aim, which is to promote and develop business relationships within Europe and also with the rest of the world, in today's world of globalization. When one wishes
Federal Reserve The key information in the January 14, 2004 Federal Reserve summary ranged from mildly encouraging to 'no change' as far as the economy was concerned. Virtually all areas were experiencing small amounts of employment growth, although there were pockets of decline as well. ("Beige Book," January 14, 2004) In fact, retail sales were up a small amount, mainly because upscale retail stores were having a good season, although the lower
Globalization and Technological Influences On International Mergers: DaimlerChrysler as a Case Study One of the most interesting international manufacturing mergers of the 20th century was the 1998 negotiation between the Daimler auto company headquartered in Germany and the struggling Chrysler corporation, headquartered in the U.S. Daimler's buyout of Chrysler resulted in a merger that ultimately failed to benefit either party, and may have seriously damaged both organizations' capacity for future growth. Below,
Dubai World, a venture funded by the emirate of Dubai, announced that it would place a six-month "standstill" on $4 billion out of $26 billion of its outstanding debt. The move had dramatic repercussions for global financial markets, and the rulers of Dubai needed to evaluate the best strategy with respect to how to proceed following the announcement. The decision had major ramifications for Dubai as a nation-state. Dubai's economic growth
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