by Lincoln Hay

Created on: August 26, 2010

As Ronald Reagan said during his presidency from 1981-1989, “Government’s view of the economy can be summed up in a few short phrases.  If it moves, tax it.  If it keeps moving, regulate it.  If it stops moving, subsidize it.”  This quote form one of the most prominent supply-side politicians of the twentieth century supports the idea of capitalism, an economic system based on profit motive, consumer sovereignty, the invisible hand, quality products for reasonable prices and competition.  Capitalist nations tend to lower their trade barriers in order for corporations to expand to the largest market possible i.e. the world, while still running under certain rules.  This process is known as economic globalization.  The interdependence of nations can lead to a chain reaction effect of both positive and negative natures. Economic globalization should be promoted to a reasonable extent among nations, who should adjust accordingly.

In contemporary society, the phrase, “The world revolves around money” is evident in our everyday laves.  One needs to pay for food, rent and every other basic material need.  Therefore, the profit motive of many individuals is clear.  In order for companies to become more profitable, however; they must expand their market to the largest possible.  If one wished to sell a product in Canada, a country with roughly 30 million people, they would only have access to 30 million of the world’s approximate 6 billion people.  If you have the opportunity, you might as well try to achieve the highest profit amount as possible, and the best way to achieve that is to be a multinational corporation, with locations in many countries.  After all, the only responsibility of corporations is to generate profit for the shareholders while working under the laws of the jurisdictions in which the company resides in.  On the other hand, the reliance on other nations to import another nation’s products can lead to devastating results.  Prior to the 1990’s, for example, North Korea was receiving resources from the Eastern Bloc.  After the collapse of the Eastern Bloc, North Korea’s importation of resources was cut, and the North Korean Famine occurred.  Approximately 2 million people died, and the effects are seen biologically accumulated in children as seen in a 2006 study conducted by Amnesty International.  During the

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