Is Brexit the beginning of End of Globalization? Part 1

Is BREXIT a harbinger of end of Globalization?

Is Globalization in peril? Is BREXIT the first domino?
Is Globalization in peril? Is BREXIT the first domino?

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]W[/dropcap]hen Britain voted to leave EU [called British Exit—or Brexit] the Dutch Prime minister Mark Rutte said “England has collapsed politically, constitutionally and economically”.

The vote by Britain has also impacted the unity of United Kingdom since Scotland and Northern Ireland wanted to continue in Europe while England and Wales wanted out. Younger age groups wanted to remain compared to older cohorts and poor wanted out compared to rich.

Throughout the seventies and eighties it was globalization [The G word] of manufacturing facilities that is for Product Markets.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he anecdotal evidence often told in many a business school classroom used to be something along these lines: The doors of the Ford car are made in Barcelona and the seat cushions near Budapest and Gearbox in the suburbs of Paris and Music System in Osaka and the assembly is done at Shanghai and the car is sold in Thailand. So, what is American about it? It is transnational and the geographical boundaries are crumbling and think global and act local we were told, and the term “glocal” came into existence. This was the ultimate in the process of global integration of economic activities through integration of manufacturing facilities to reduce cost, take advantage of pool of skilled resources (aka low cost) available in the emerging markets. It also argued about “standardization” of lifestyles – mostly conforming with the American standards — in terms of Jeans, Processed Food and Colored Water (Cola) drinks.

To be continued…

Note:
1. Text in Blue points to additional data on the topic.

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Prof R. Vaidyanathan

Cho S Ramaswamy Visiting Chair Professor of Public policy[CRVCPPP]

Sastra University

An expert in Finance and a two times Fulbright Scholar, Prof. R Vaidyanathan is a much sought after author, speaker and TV commentator on all items related to Money and Finance.
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1 COMMENT

  1. I would go to the extent of calling him a genius. He must kept every one biting their fingernails and awaiting the next part as he has left me under suspense.

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