Globalization at Warp Speed

Globalization thrives in financial markets and may even control them. Much focus is on the world’s fastest-growing economies. For example, China’s consumes near half of the world’s aluminum, copper, lead, nickel and zinc, up from 13 percent in 2000, writes economist Robert J. Samuelson for the Washington Post. Reduced demand for oil due to slowed growth in China and an increased US supply has caused oil prices to plummet. Investors act en masse on news of financial events: “Huge amounts of money can shift in a digital instant among countries, currencies and various financial markets,” Samuelson writes. He adds that most countries have removed controls on individuals or companies moving funds across borders. As a result, many countries no longer have control over their interest rates, as suggested by economists with the Bank for International Settlements. Investors quickly cross borders for the best deals, and any nation that tries to renew such controls could be at a disadvantage. – YaleGlobal