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Economics and Globalization - Wall Street Gets a Taste of the Dark Side of Globalization

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"Wall Street gets a taste of the dark side of Globalization."

Mourdoukoutas, Panos. "Wall Street Gets a Taste of the Dark Side of Globalization - Forbes." Information for the World's Business Leaders - Forbes.com. Forbes, 2 Oct. 2011. Web. 10 Oct. 2011. <http://www.forbes.com/sites/panosmourdoukoutas/2011/10/02/wall- street-gets-a-taste-of-the-dark-side-of-globalization/?feed=rss_asia>.

The article was written by Panos Mourdoukoutas, on the Forbes website. Mr. Mourdoukoutas talks about globalization in the 1980s and 1990s and how it was the "good side" of globalization. Globalization in the past year has changed greatly and now how new risks with a high degree of integration of markets. He makes the connection that when one country goes into a recession it causes a chain reaction to surrounding countries. For example, " A recession in Greece and Ireland and a slow-down in Spain and Italy, for instance, are followed by a slow-down in France and Germany, which are followed by a slow-down in the US and China, and so on"(Mourdoukoutas).

The normative argument states that globalization should have a positive impact on the economy and should be helping each country grow. Even though this is not what is going on currently it is important to keep it in mind because globalization helps open new markets, creates jobs, and increases money flow between countries.

The positive side of globalization is " when globalization was all about the efficiencies and opportunities open markets create; about easy credit and rising leverage, as money flowed easily across local and national boundaries--setting the world economy into a virtuous cycle of income and employment growth--the good side of globalization"(Mourdoukoutas). Globalization is great when the entire world can benefit from the world's largest corporations and it is just as easy to sell in other countries as it is in their home market. When looking at the list of major corporations that are struggling in the recession it is a surprise and it should be the other way around. A few of those corporations include Microsoft, Honda, Toyota, and General Motors. While those corporations are down Apple, Caterpillar, and 3M are up(Mourdoukoutas).

All in all, the article is right on when it comes to the idea of globalization in today's market and world. The positive effects from globalization have been around for the past twenty years and are now starting to dissipate because of the poor economy. Mourtoukoutas states that " Investors in the world's largest corporations must be prepared to assume both the high yields and the high risks associated with a global economy." This is very important to remember because now that the world as a whole is in a recession we should be able to help each other



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