Globalization and Advanced Countries: A Closer Look.

The benefits of globalization must be paid for. With globalization as the world's mantra, advanced states which opt to become tariff-less societies will be spun into economic chaos through systematic erosion of jobs lost to competition while downward spiraling yields on interest rates set in as monetary authorities pursue an accommodative stance. This declining yield environment may also be fed by declining investment alternatives due to the implosion of affected industries as these economies become trapped in the innovate-or-perish dilemma. Failure to innovate produces labor-intensive enterprises with accompanying declining productivity levels. Cheaper imported goods also help to erode prices, potentially resulting in an environment of consistently low and probably even negative inflation. All of which could potentially force monetary authorities into the cruel dimension of administering negative interest rates and quantitative easing mechanisms.

While the other group of tariff-less states, emerging and third-world economies, enjoy the benefits of the incomes and wealth accumulation lost by advanced economies. This explains why China now sits atop its trillion dollar reserve balance while western economies are caught in up in survival mode.

Globalization, or global economics, if you will, does work, yes, benefitting poor states at the expense of the advanced economies, making these poorer, delivering on the promise of 'more equitable distribution of wealth/incomes'.