Globalisation of economy: Trinda
Monday, August 11, 2008

As quoted from CNN, "Call it globalization gone crazy, nationalistic nonsense or just a storm in a coffee cup. " The opening of a Starbucks cafe in the Forbidden City had certainly ruffled some feathers in China. The Chinese believed that it marred the solemnity of the Forbidden City and undermined Chinese culture. Rui Chengcheng, a chinese TV personality star, also campaigned for the removal of the store.
There have been mixed views towards this particular topic of the Globalisation of economy. Generally, the ideas of free trade, capitalism, and democracy are widely believed to facilitate globalization. Supporters of free trade claim that it increases economic prosperity and opportunity, enhances civil liberties and leads to a more efficient allocation of resources. Jeffrey D.Sach proved that the average drop in poverty rates in countries, such as China, where globalization has taken a strong foothold, is much larger as compared to areas less affected by globalization, such as Sub-Saharan Africa, where poverty rates have remained stagnant. However, while it is true that globalization encourages free trade among countries on an international level, there are also negative consequences because some countries practice protectionism. The main export of poorer countries is usually agricultural goods. It is difficult for these countries to compete with stronger countries that subsidize their own farmers. Thus, the farmers are forced to sell their crops at much lower price than what the market is paying.
Thomas L. Friedman "examines the impact of the 'flattening' of the globe", and argues that globalized trade and political forces have changed the world permanently, for both better and worse. Globalised economies like Starbucks definitely is a good example of this. Although tourists are grateful for a hot cup of coffee in the cold and thinks that it is a good chance to show off how open and cosmopolitan China is, the locals thinks it supresses their national identity.
As the saying goes, "A coin always has two sides."