Friday, September 21, 2007

Simplifying globalization: wealth redistribution and comparative advantage

IMO, for the majority of heated debate on globalization, there are 2 sides of globalization that rarely mentioned together. Globalization as method of wealth redistribution, and globalization as method to capitalizing comparative advantage.

In theory, if you're relatively poor because your work result is undervalued relative to world average valuation, you can benefit a lot from globalization. Once the whole world has access to your work, it will be valued higher. You will be richer. The bad side is that if you're relatively rich because your work result is overvalued compared to world average valuation, globalization will lower the valuation of your work. You will be poorer.

Is this mean that people from rich country is always at disadvantaged when joining globalization? Not really. Rich countries can benefit from globalization because of the second aspect of globalization, which is comparative advantage.

With comparative advantage, people can concentrate on doing what they do best thus driving down cost and increasing profit margin. People from relatively richer country can benefit from this by having access to superior product/service or cheaper product/service. The relatively poor can too.


Globalization is also a game of give and take. A country give up protection to certain aspects of it's economy, and take up the opportunity of certain aspects of economy in other country.

Unfortunately, many countries choose to selectively open themselves to globalization. They only open aspects of economy where they will be hurt the least, and force other country to open up it's aspect of economy where they will gain the best result.

Tuesday, September 04, 2007

Cosmic joke of

First Media is the new internet service provider in town, and it's playing a joke on me.

I planned to install First Media cable internet service as another redundant internet connection. But none of the 3 locations is connected by First Media.

The first location is on a major street. I'm disappointed but if they decide not to serve that street, so be it. I can live with that.

The second location is on a somewhat middle size street. They actually have a connection there, but the connection ends on the building next to mine.

The cosmic joke is on the third location. Almost every building on that street is serviced by First Media, except mine which is right in the middle of that street. So all buildings whose number below mine are serviced and all buildings whose number above mine are serviced, except mine!

I am feeling sour.