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China has developed into a big, extremely attractive a......

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My Understanding of Globalization The term globalization has acquired considerable emotive force. Some view it as a process that is beneficial and also inevitable and irreversible. Others regard it with hostility, even fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. As thoughtful people concerned about world affairs, our job is to pick up globalization, examine it from all aspects, dissect it, figure out what makes it tick, and then nm and promote the good parts and mitigate or slow down the bad parts. Globalization is much like fire. Fire itself is neither good nor bad. Used properly, it can cook food, sterilize equipment, form iron, and heat our homes. Used carelessly, fire can destroy lives, towns and forests in an instant. Globalization has dangers and an ugly dark side. But it can also bring tremendous opportunities and benefits. Just as capitalism requires a network of governing systems to keep it from devouring societies, globalization requires vigilance and the role of law. Transparent mechanisms are needed to make sure globalization is a positive force in the world. Globalization will always have cheerleaders who are blind to the destruction globalization can cause. And it will always have strident opponents blind to the way globalization gives some people their first opportunity to fulfill basic aspirations. As with most issues, the majority of people will be in the middle. They will see globalization not as something to worship or demonize. Instead, they will see it as something to mold, shape and manage for the betterment of everyone.
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One might ask why speculation is permitted when there is so real a danger of loss. The basic reason is that speculation can perform useful functions in the market equilibrium and encourages faster entry of more suppliers, ff the price change lagged until after an actual commodity shortage had occurred, the fluctuation would probably be sharper and more sudden. Remedial supply action could not be further delayed. Similarly, if speculators foresee a surplus in some commodity, their selling of futures will help drive the price down to some extent before the surplus actually occurs. When speculators foresee a shortage and bid up the price, they are also helping to conserve the present supply. As the price goes up, less of the commodity is purchased; a rib in price encourages users to economize. Similarly, a lowering of price encourages users to buy more, thus helping to sell the surplus which is developing.
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