Interesting theory
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Cargo Master
Joined: Apr 2003
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From: Frequently frozen MN
Interesting theory
Hi,
Technology Review: Blogs: arXiv blog: How Globalization Is Bad for the World Economy
I've never heard of econophysicists, but apparently they exist and do stuff.
Seems that they think that globalization is bad for the economy. Interesting thought.
hj
Technology Review: Blogs: arXiv blog: How Globalization Is Bad for the World Economy
I've never heard of econophysicists, but apparently they exist and do stuff.
Seems that they think that globalization is bad for the economy. Interesting thought.
hj
Fleet Owner
Joined: Aug 2001
Posts: 29,941
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From: Drummonds, TN USA
I didn't surf to the artical, but on what is here at face value - globalization of the marketplace means that prices come down on all except transportation costs. Which means in turn that whoever is the lowest bidder will determine market prices.
Just like generic products - profit margins would be reduced because someone else with a "LIKE/SAME" product will undersell name brands, and that has to have an impact
*Econophysicists probably study the economorphology of worldwide marketshare - most likely in a cocktail lounge while their laptop computer is crunching numbers for them in their hotel room upstairs
____________________________everything below this line is after I read the artical__________________________________
I think that what they are getting at is that small local economies have better opportunities for speculation - I could be taken wrong there.
It's the "EGGS IN ONE BASKET" model.
If the whole basket falls to the ground, most of the eggs get broken.
Further - prosperity in small areas would be over ridden because the profits they had in a small area would no longer be realised.
What I get out of it is that anything involving transportation is an excellent investment
Just like generic products - profit margins would be reduced because someone else with a "LIKE/SAME" product will undersell name brands, and that has to have an impact
*Econophysicists probably study the economorphology of worldwide marketshare - most likely in a cocktail lounge while their laptop computer is crunching numbers for them in their hotel room upstairs
____________________________everything below this line is after I read the artical__________________________________
I think that what they are getting at is that small local economies have better opportunities for speculation - I could be taken wrong there.
It's the "EGGS IN ONE BASKET" model.
If the whole basket falls to the ground, most of the eggs get broken.
Further - prosperity in small areas would be over ridden because the profits they had in a small area would no longer be realised.
What I get out of it is that anything involving transportation is an excellent investment
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