I'm still sticking with my theory:
due limited supply we will see price increases of certain goods. And this will be direct result of globalization (= industrialization / economic development of 3rd World countries - especially the big ones like China & India).
PS: I've never claimed all 2.5 billion people in China & India will be a part of middle class, yet majority of them will be when those two countries become more & more developed.
Imagine eg. a billion of new people who can afford a car - so there will be a demand for a billion new cars. So, where the hell in the world the industry will get enough raw material (iron, aluminium etc) to produce so many cars. Not to mention enough oil / petrol to power a billion more cars.
Again: many people are forgetting natural resources are LIMITED, and with globalization we are heading towards that limit very quickly.
I'm not talking years here rather decades.
And again: we are discussing globalization through Western point of view. I'm eager to hear some Eastern aspect.
