It was unthinkable mere years ago, but globalization is starting to lose momentum. High and holding fuel prices -- shipping a 40-foot container from Shanghai to the U.S. will cost ya $5,000 more today than a decade ago -- are making global supply chains look far less attractive. Goods headed for the maw of the world's largest consumer are now increasingly being made in-house: Swedish manufacturer IKEA just opened its first U.S. factory; Tesla Motors is assembling its luxury roadsters in California; China's steel exports are falling rapidly, while American steel production is rising. Local-economy boosters are delighted, but many economists doubt that regionalization is right around the corner. "It would be a mistake, a misinterpretation, to think that a huge rollback or reversal of fundamental trends is under way," says economist Jeffrey Sachs. "Distance and trade costs do matter, but we are still in a globalized era."
source: The New York Times
see also, in Gristmill: Globalization death watch, Wal-Mart gobbles up local produce
Comments
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savee419 Posted 5:27 am
04 Aug 2008
It's interesting to see that globalization has slowed down, true, but it's important to remember that globalization is something that a lot of people in the world are used to and in order to become local-focused again businesses needed globalization to succeed.
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Delay And Deny Posted 8:16 am
04 Aug 2008
Good, that means instead of idle teens making minimum we can return to the days of high factory pay and middle America.
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Jon Rynn Posted 8:19 am
04 Aug 2008
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Pangolin Posted 6:57 pm
04 Aug 2008
Business is suddenly going to be very interested in the quality of the local high schools.
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mtvyfan Posted 1:09 am
06 Aug 2008
They should bow down before the Dalai Lama before it's too late.
Keep the high gas prices coming, baby!
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earlysnows Posted 2:48 am
06 Aug 2008
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Wolverine Posted 5:22 am
06 Aug 2008
Keep in mind that 1) China was and is only following the example of the U.S. in its industrialization and modernization and 2) the U.S. has outsourced industries to China and imports megatons of needless crap from there made by those industries. So when you bash China, remember that Americans are at the root of what its been doing for the past 20 or so years.
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djnoll Posted 9:46 pm
11 Aug 2008
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