In the humble opinion of this blogger, economicsdude aka me, this global recession has brought out a tangible and noticeable form of globalization. It is a financial globalization that has created perceivable, noticeable, and trackable effects in the economies and markets of several world regions based on the cause and effects of other economies and world regions. These cause and effects being of course the flunctations of the markets.
Now at times this has been good and for the most part it is because regions need to borrow money form other regions at times to sustain themselves and following that prosper. As such, I am not at all a self-consuming nationalistic or isolationist proponent of capitalism however, you must know when to gamble on your team and when to bet on the other horse. At times this is smart business, you take the best of something, somewhere and make it your own till you are the overall better person, company, country, etc.
However, of course, there are issues and industries that are and will because of their very nature understandably subject to global competion and market control. The two most powerful examples are oil and green energy.
Now, this blog is about global influence and as such America is the engine of the world and as i mentioned before there has already been and there continues to be worldwide tangible effects of the great American Recession due to bank speculation, housing crisis, bad loans, government mismanagement, etc. However because of globalization the whole world, which I will use the metaphor of car, broke at different parts. The gas tank got a hole (Dubai, Iraq, etc), the electrical system (Europe) gave bad readings, yet the seats (Asia) have maintained form despite getting scratches, tears and pressure.
So?
What can we do as a country and people and individuals and investors to get ourselves and the whole car to shift gears and move up in speed? At this time we must make our own companies succeed to pay off foreign creditors and then when we are at former levels former levels of prosperity we can buy goods again.
So, despite about a decade of prosperity and a global war on terrorism, GLOBALIZATION AND GLOBAL INFLUENCE has been most noticeably felt through the effects of worldwide market failure.
Therefore, in this new global eceonomy, we must restructure ourselvses to be leaders again in business and to do this we must have smarter business that relies more on proven methods of success than easily collaspible models of risk. These proven methods can at times be hard to
A) remplement in the case of the bank and auto industry such as in the neccessary steps that they have taken in restructuring and re-organization however necessarry
and
B) hard to intitally start off in the case of green, solar, wind, and recycling etc, industries
Thus we should look in companies that are breaking and making ground in these fields. These companies will undoubtly have headstarts in those markets and be poised for success.
As a investor in this current market one has many options perhaps more than ever and thought it might take more than ever to make money, it can be certain that now there will be levels of global influence in certainly in almost all if any market or investing decision.
