From the book of THE UNDERCOVER ECONOMIST Topic of BEERS, FRIES AND GLOBALIZATION

1. THE UNDER COVER
ECONOMIST
BEERS,FRIES AND GLOBALIZATION
BY
R.G.SIBIANANDH
[TSM]

2.  Burges-Capital city
 Grow wealth city in the North Europe with trade of
cheese, wool, minerals , Spanish wine, Russian furs,
Danish Pork, silks, spices etc.
 Wealth continued flow of 250 years.
 France queen visited –realized.
 Tall masts and broad sails- Zwin Estuary
DUCHY OF FLANDERS

3.  15th century-split into two and no longer available.
 Hanseatic League move to cost Antwerp.
 Cathedral domination, buildings, architecture of
spines and pencil thin windows
 It is the trade house-still the diamond capital of the
world.
Beginning of strange

4.  Difference of rich with successive and silts remain the
same.
 Hot fries with fizzy beer.
 Washington DC and Sober is only noble and
enterprising merchants.
 Blessing and curse with the example.
 Internationalization –star bucks in Shanghai with
China.
Change and unchanged

5.  Edward O Wilson with racial mix of acceleration
country with people.
 Globalization with new ideas.
 Books of economics and biology choosing by vocation
and not by reference.
 Chinese product Vs domestic product and the
antidumping laws.
Racial mix

6.  Worker and the product with the work efficiency.
 Example of flat TV and drill mount with time.
American and Chinese

7.  Trade barriers
 Free trade
 Import and export policy
Trade

8.  Globalization good or bad?
 Trade of goods and services
 Migration of people
 FDI
Globalization

9. • Foreign investment is good for economic growth in poor
countries as it is an excellent way for them to create jobs,
learn cutting-edge techniques, and do so without having
to invest their own scarce money.
• Though trade and investment in poor countries has risen
rapidly in recent years, we should be clear that both trade
and foreign investment overwhelmingly takes place
between the richest countries, not between rich and
poor.
• Australia, Denmark, Belgium, Switzerland, Britain, Japan,
Taiwan these are rich countries ,and they do trade among
them
Foreign investment

10.  China, with about a quarter of the world’s population,
produces less than 4 percent of the world’s exports.
 India is nowhere at all, with a billion people producing
less than 1 percent of world exports and hence the
developing countries participate even less.
 What about the very poor countries?
Sadly for them, rich countries trade very little with
them—and as trade expands elsewhere in the
world, the poorest countries are being left behind.
Cont..

11.  All the major world traders put together, the percentage of their
imports from the least developed countries is 0.6 percent, down
from 0.9 percent twenty years before.
 Trade is good for economic growth; foreign direct investment is
closely related to trade, and it, too, is good for growth. The
poorest countries miss out on those benefits
IS GLOBALISATION IS GREEN?
Globalisation has made the world more polluted. Because of three
reasons:
1. “race to the bottom”
2. The second is that physically moving goods around inevitably
consumes resources and causes pollution.
3. The third worry is that if trade promotes economic growth, it
must also harm the planet.
Cont..

12.  “Race to the bottom “ creates pollutions in poor countries
because companies rush overseas to produce goods under
cheaper, more lenient environmental laws, which is found in
poor countries. But practically it is not true.
 Because majority of trade is between rich countries, who have
similar environmental standards.
 And also poor countries produce goods like clothes, children’s
toys, and coffee, while the seriously polluting industries like
chemical production require high levels of skill, reliable
infrastructure which is available in rich countries.
 Hence it is said that “foreigners are bringing dirty industries to
the United States, but
American companies are bringing clean industries to the world

13. Example

14.  Protectionism itself can have tremendous environmental
costs.
 Example :European Union, created a package of trade
barriers and subsidies designed to protect European
farmers.
 But the policy encourages intensive farming with the
obvious results of poor food quality and high use of
pesticides and fertilizers, and all the while, dumps food on
the developing world and depresses the prices received by
farmers in poor countries.
 The more agriculture is subsidized, the more fertilizers it
consumes.
Cont..

15. Chart

16.  (chart)
 Poor food quality and high use of pesticide and
fertilizer.
 Martin Wolf’s statement.
 Trade protection and environmental cause.
 Monoculture of crops.
 Importance of biodiversity.
Protected Agriculture Intensive

17.  Jagdish Bhagwati-statement of killing of birds.
 Transport cost and pollution.
 Trade barriers attacks transport.
 Externality charges
 Environmentally damaging economic growth.
 Economic growth and trading
Cont..

18.  Number of multinational companies
 Example of Enterprising student @MIT-Jonah Peretti
 Terrible working conditions
 Turn over rate
 Local firms-Garbage dumps at Manila
Sweatshops is trade good for poor?

19.  Solution to poverty
 Formal employment
 William Greider-decent wages and factory condition
Cont..

20.  Harry Trueman and Ronald Reagen – unadvised and
better speech writer.
 True economist and the rare economist.
 Global free trade as great advantage.
 Example with Japan and US.
 Trade barriers-Uruguay.
Power of special interest group

21.  Benefits and effects
 Import restriction payment
 Policy of isolation
 Responsibility of Roosevelt-1934
 No political system is better
Tariffs

22.  Power of scarcity
 Example of Timor coffee
 Vietnam coffee and the farmers
 Switching of business
 Developing economy to growth.
Better things for poor

23. Thank you