Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Costs & Benefits of Globalisation to the UK

Economics / Analysis & Strategy Nov 15, 2006 - 07:13 PM GMT

By: Sarah_Jones

Economics

Globalisation is a capitalist process that has taken off as a concept in the wake of the collapse of communism as a viable alternate form of economic organisation as we are increasingly been seen as living in the era of globalisation. Globalisation describes the increased mobility of goods, services, labour, technology and finance & capital throughout the world. Although globalisation is not a new development, its pace has increased with the advent of new technologies, especially in the area of telecommunications.

The Benefits and Costs of Globalisation to Britain

Examples of how globalisation effects Britain is in the current trend of UK business employing indian call centres for support & sales services, or for a clothing manufacturers to design its products in the UK, and make them in south-east Asia and then to sell them in north America.


The Costs of Globalisation are -

  • The wages in the UK are high in global terms, and thus the UK is unable to compete in many sectors such as manufacture of consumer goods or other goods where the labour costs are a significant element of the price. Thus British workers are losing their jobs when companies move abroad or fail to compete.
  • Open to risks outside of the control of the UK government , i.e. International capital flows and crisis.

The Benefits of Globalisation are -

  • English is the language of the internet and international business & commerce, giving the UK a head start against the likes of France in developing ecommerce businesses and services.
  • Globalisation has helped to elevate London into the worlds financial centre for the European Time zone. With a large and wide ranging financial services sector including banking, insurance.
  • A large number of UK companies sell overseas for which 'Britishness' is part of the appeal
  • UK Educational institutions benefit from many overseas students.
  • Availability of a wide range of produce and goods to the UK consumer at low prices.

Steps to Counter the negatives of Globalisation -

  • Increasing skill levels of the workforce to raise productivity
  • Develop a modern industrial strategy for the global market place
  • Securing UK energy supply and investing in sustainable renewable energy technologies
  • Improving transport links in growth areas of the country.
  • Investing in new science and technology.

In conclusion, the average family in the UK is some £7,000 per annum better off, due to reduced costs for goods and services due to the impact of globalisation. This has helped to sustain an record period of economic growth and prosperity within the UK. However the costs will be bourne in future years as wages inevitably converge lower towards the east asian wages for competitive reasons. I.e. when a high paying manufacturing job is lost, it is likely to be replaced by a lower paying service industry job.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in