Topic #12 ~ Globalization

http://www.usnews.com/articles/opinion/2009/05/29/high-oil-prices-will-fracture-the-world-and-end-globalization.html

The link above is an article entitled "High Oil Prices Will Fracture the World and End Globalization". It is based off of the ideas of economist Jeff Rubin. He believes that the high oil prices will cause the U.S. to turn to national labor forces, instead of foreign workers. The cost of exporting goods to foreign countries for cheap labor and then importing them back to the United States will save no money. This is because businesses will be spending more money on transportation to and from countries because of the higher cost of oil.

This idea is coupled with the idea that more jobs will be made available to U.S. citizens. The jobs that are deserted overseas will be created in the U.S. Wal-Mart imports from China but may not be able to support their labor overseas and will relocate to the U.S. Jeff Rubin also believes that oil prices will stay high because of high demand and low supply. This will cause the de-globalization to be long lived and he predicts that globalization will be ended permanently.