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Originally Posted by EnI  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).  |
Interesting you brought this up. You're correct to say that shrinking supply will increase the price of certain goods, but you fail to mention anything about substitutes. It was once predicted that we would run out of coal to fuel our boats and heat our homes, but substitutes came along and the price of coal plummeted. Some people are saying $5/gallon of oil is the best thing to happen for the environment. It will force society to innovate away to a cheaper, plentiful and possibly renewable substitute.
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Originally Posted by EnI And who will built & engineered the machines? The birds?  
Btw, if globalization brings prosperity to the poor countries & their citizens, and when globalization process continues, someday we will run out of poor countries. And who will then work for a red cent per day ? You? Or the monkys perhaps? |
Wealth is relative. There will always be a low income country in the world willing to work at a lower price than other nations. As long as they have a proper infrastructure in place they will be able to prosper. Keep in mind that Japan and South Korea were once "poor" countries that exported low margin goods such as the ones being offered by China today. Now the relative wealth has shifted and it will continue to shift in the future. A key part of international trade is comparative advantage. If nations were able to specialize in their comparative advantage and trade on fair terms they will prosper.