by Joshua Armstrong

Created on: February 01, 2007   Last Updated: April 03, 2007

Globalization is sadly a natural and inevitable fact of the economy. All financial institutions, whether they be companies, factories, states, or even countries must look this fact dead in the face. In fact, at the risk of including outdated information, the New York Stock Exchange (NYSE) is on the verge of signing an alliance with Tokyo's newly publicized market. What this means at present is a mere footnote, not even a precedent, as mutual stock listings and products are only the beginning. Some experts claim that this will serve to create better cooperation between the exchanges, but does no one fear the shadow of the 1930s? A worldwide economy (which arguably is already a reality) is the only pathway that can lead toward a possible worldwide depression.

So why do we globalize? Why, you may ask, is this so inevitable? Well, let's take a massive step back - imagine for the moment that you are an ancient tribesman and that the main resource in your village is corn. Now corn is good, even if your people haven't yet figured out how to pop it, but fish is good, too. So your village trades it's corn for a neighboring people's fish, and thus an economy is set up between the two villages and they are from that point financially bound together. This is the basic model of globalization - each member of the globalized economy contributes what they have to offer and receives that which it needs. This is specially valid with the indivual in an economically free society. He will not hesitate to trade wherever the greatest profit is available.

The problem is that the rich get consistently richer, and the poor wallow in their lack. Those who have the most to give receive the most in return. You can see this principal evidenced anywhere. Take an honest look at the most thriving cities in America, or indeed the world, and tell me whether or not the homeless population is in proportionate flux. Can we stop it? Unfortunately I have no answer to that. Since the problem seems so entwined in the system the only solution would be to abandon the system itself, and we can't realistically do that.

My only advice is on a more personal level. One of the factors that has accelerated the process in modern times is the introduction of the internet. A company in Mexico can read the specifics of a merger in Paris within hours of its completion . . . but so can you! Use this tool to benefit yourself. Invest overseas, or place your merchandise on the global shelf for all the world to see. The rich get richer is an old saying, but I know another one that rings just as true - if you can't beat 'em, join 'em!

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