I was watching this news program on TV and they were doing a special on globalization and the effect on the world economy. It was SO interesting.
Basically, the gist of it.. North America is sending all their manufacturing and IT jobs to the BRIC countires - Brazil, Russia, India, China - because it's cheaper, supposed to make the cost of services cheaper so it costs less to get the same services we do now etc. well, the offshoot of that is that the middle class in India was historically about 3% of the country, but due to the influx of $$ being put into India and the IT industry, in only a few years, there is now 30% of the population are heading toward middle class.
That's hundreds of thousands of people that could not before afford houses, cars, tvs, cell phones, more expensive foods - are now demanding those thing, and there are only a finitie amount of resources on the earth. So, all of a sudden, there is a HUGE demand where before North America were the largest consumers, now all these other countries are getting up there.
The result of globalization is a higer percent of the world being midle class, which is too much for the world to sustain long term and the costs of everthing will continue to rise - there is no way the costs of any of this stuff is going down, so it's something we have to get used to unfortunately.
I need to find out what show it was I was watching because it rought up some really great points.
This stuff really interests me - I love global economics and global issues.
Nad
