The dominance of global industries today also poses unique questions about the relationship between the global economy and the domestic economy. In the case of semiconductor and machine tools, the major manufacturer originated from the U.S., but now China is also becoming the leading player in all of these segments. And this trend is also expected to continue. In the past, people often made the mistake of thinking that the global economy was unaffected by domestic economic factors, but this was not really the case and it led to more or less economic disaster in many cases.
While it is true that global economic scenario is directly related to the domestic economic scenario, there are other aspects as well. For example, a strong economic policy can help the manufacturing sector in some countries, but can make the situation worse in others. It is obvious that when countries such as China and India are involved, things tend to be a little more volatile.
As has been mentioned, there are various kinds of problems that one could face in this context. One of the most obvious issues is the question of trade policy. China and India are growing extremely fast and so they are bound to have an impact on the trade policy of many countries including the U.S.
At the same time, the political systems of the U.S. and the U.K. have some limitations that cannot be ignored. They cannot provide such policies to the extent that they are able to make sure that trade flows remain smooth. This can only be done by having a strong international organization and by taking certain initiatives to ensure that the political process in these two countries does not interfere in trade relations.
Another question that arises from such issues is the impact of the new technologies on the global economy. The main factor here is the impact of information technology on the production process. Computer hardware and software are one of the main components of the production process. Therefore, if such technology is developed in countries other than the countries of origin, then the cost incurred for manufacturing in those countries will definitely rise, and this will eventually affect the prices of the goods in those countries.
However, this is one of the most important issues that cannot be ignored. The world can easily handle it, as the demand for the products developed countries’ goods is always going up and the supply of such goods is always going down. This trend is also expected to continue as long as globalization continues to go on, as new markets keep appearing in every corner of the globe.
Globalization will create more possibilities for outsourcing jobs to be done. This can be done in a number of ways. For instance, in the case of electronic components, India can do more work for the United States and for other countries. Similarly, the production of computer parts in China can be outsourced in order to produce computer chips for the U.S. and other countries in America.
In the end, globalization is a very good thing. It is creating opportunities that can help people around the world and also create many opportunities for people in developed countries. However, we cannot ignore the need for an international trade policy that can help us deal with these difficulties and also ensure that the benefits of globalization are actually enjoyed by all. In the case of China, we can be sure that in the near future, many of the jobs in Silicon Valley will be performed by robots, and vice versa for India.
