The concept of Globe under single roof seems to be a great idea. The free flow of goods and service between the countries is a blessing in disguise. Such free flow market let good idea to transcend boundaries. It promoted the global trade and helped in reviving weak economies. Whenever a bail out package is granted for a bankrupt country, the bankrupt countries were made to make an undertaking to open up its market for the world.
That was a great concept for those countries which are not able sustain upon its own resources. The slack economy got a boost once the import and export norms and the license raj were abolished by state. The state control over the commodity market were transformed into free market. The people who produced various commodities found new market beyond their country to explore opportunity. The international trade strengthened the state economy with incoming of huge foreign exchange.
But everything comes with a price. Once the free market concept penetrated these under-developing and developing countries, the commodity outflow from these country increased many folds. The sad part is that these countries failed to get complete benefit from free trade market. To the capitalist countries, who were the great advocate of laissez faire policy, the markets of developing and under-developing countries were just a source for obtaining raw materials. The developing and under-developing markets missed the chance of getting the know how of the manufacturing at great quality at low prices except for the few markets.
Further, the developed countries who find it difficult to manufacture in the domestic environment started investing in the developing countries to manufacture goods for sale. It may appear to us that it promote employment and development of community around the business. But the real business is for the people who are keen on producing high quality goods at reduced price. In order to avoid high cost of production in their domestic market they hunt the developing countries. It is good in short run but what happens if the investor feels the cost is increasing even in these developing countries. The result is nothing. The capital will fly over night to other low cost economies. The resultant effect is jobless horde of people who fight for a living.
For the countries which highly depend upon the foreign investments must have a fallback plans if the capital happens to fly overnight. The rich and prosperous nations would turn pauper with in weeks of capital shift.
But the contemporary world, demands free flow of capital from one country to another. The advocates of this policy cites various weak economies could benefit from the movement of capital. That is true! The free flow market will avoid stagnation of capital. Even then, the free flow of capital must be sustainable.The investor get benefit either way. The only policy they implement when it comes to goods and services is minimum input cost but maximum output. The investor knows only business. Hence, it would be illogical to demand too much from the world investor community. Still, it wouldn't be illogical to demand a economically sustainable investment. The need of the hour is the balance. A strong economic strategy would sustain the society even if the investment depart from the developing countries.
That was a great concept for those countries which are not able sustain upon its own resources. The slack economy got a boost once the import and export norms and the license raj were abolished by state. The state control over the commodity market were transformed into free market. The people who produced various commodities found new market beyond their country to explore opportunity. The international trade strengthened the state economy with incoming of huge foreign exchange.
But everything comes with a price. Once the free market concept penetrated these under-developing and developing countries, the commodity outflow from these country increased many folds. The sad part is that these countries failed to get complete benefit from free trade market. To the capitalist countries, who were the great advocate of laissez faire policy, the markets of developing and under-developing countries were just a source for obtaining raw materials. The developing and under-developing markets missed the chance of getting the know how of the manufacturing at great quality at low prices except for the few markets.
Further, the developed countries who find it difficult to manufacture in the domestic environment started investing in the developing countries to manufacture goods for sale. It may appear to us that it promote employment and development of community around the business. But the real business is for the people who are keen on producing high quality goods at reduced price. In order to avoid high cost of production in their domestic market they hunt the developing countries. It is good in short run but what happens if the investor feels the cost is increasing even in these developing countries. The result is nothing. The capital will fly over night to other low cost economies. The resultant effect is jobless horde of people who fight for a living.
For the countries which highly depend upon the foreign investments must have a fallback plans if the capital happens to fly overnight. The rich and prosperous nations would turn pauper with in weeks of capital shift.
But the contemporary world, demands free flow of capital from one country to another. The advocates of this policy cites various weak economies could benefit from the movement of capital. That is true! The free flow market will avoid stagnation of capital. Even then, the free flow of capital must be sustainable.The investor get benefit either way. The only policy they implement when it comes to goods and services is minimum input cost but maximum output. The investor knows only business. Hence, it would be illogical to demand too much from the world investor community. Still, it wouldn't be illogical to demand a economically sustainable investment. The need of the hour is the balance. A strong economic strategy would sustain the society even if the investment depart from the developing countries.
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