Developed Nations and the Economic Impact of Globalization Ken Moak www.ebook3000.com Developed Nations and the Economic Impact of Globalization Ken Moak Developed Nations and the Economic Impact of Globalization www.ebook3000.com Ken Moak Capilano University North Vancouver, BC, Canada ISBN 978-3-319-57902-3 ISBN 978-3-319-57903-0 (eBook) DOI 10.1007/978-3-319-57903-0 Library of Congress Control Number: 2017940372 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, 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Gewerbestrasse 11, 6330 Cham, Switzerland To my first granddaughter, Mila May Lai Dowe, hoping and praying that she and millions of babies and children will live in a world of compassion, humanity, peace and prosperity www.ebook3000.com Preface Globalization may not be popular during periods of economic slowdown and high unemployment, but it has benefited the world far more than it cost Without free or free international trade and investment, improvements in transportation, communication, and information technologies might not have advanced as quickly as they have It was the lure of higher profits that incentivized business enterprises or investors to seek new and more efficient methods to transport greater quantities of goods across the globe faster and cheaper Without immigration, the developed economies, particularly the United States might not have earned its status as the world’s leader in innovation Its well-funded universities have attracted and will continue to attract some of the world’s best and brightest minds to its shores Without international cooperation, peace between major powers might not have lasted as long as it did In short, there is every reason for globalization to be promoted and embraced Indeed, it could be argued that globalization, for all its flaws and contradictions, is needed more than ever before in human history Increasing protectionism threatens to undo all the good things that globalization has given to the world A return to the era of import restrictions would trigger trade wars from which no country benefits Rising tensions between major powers could lead the world to a war from which hundreds of millions of people will perish and countless properties destroyed It is these scary scenarios that prompted me to write this book, hoping to play a small role in triggering a rational debate on globalization in university classrooms, policy communities, and public vii viii Preface forums Until another planet suitable for human habitation is discovered, the Earth is our only home World governments must not only preserve it but make it more livable for all of humanity and other forms of life It is also the hope that universities and colleges would encourage undergraduate economic, political science, and other students to study globalization Being future leaders of government, business, labor organizations, international institutions, and non-governmental organizations, they should have an understanding of globalization Having taught the course for 15 years at Capilano University in Canada, students found the subject informative and relevant for their future endeavors Indeed, my students and colleagues made valuable inputs in writing this book I hope the book is a suitable textbook for an undergraduate globalization issues-oriented course The lack of a such a reference book impedes teaching effectiveness and learning This book covers most if not all major and relevant topics of globalization, affording professors and students with the necessary information for teaching, learning, and debating this very important and timely topic Whether we support or oppose globalization, its impact on all of our lives cannot be understated For this reason, we should understand it better so that we can determine for ourselves whether globalization should be promoted or ended An understanding of the aspects of globalization would also afford us the knowledge to assess the information that is propagated by various vested groups objectively and rationally to avoid disastrous developments For example, the public should be able to determine whether China, Russia, or any other country is really threatening our interests or security Burnaby, Canada Ken Moak www.ebook3000.com Acknowledgements Of the many people that I would like to thank in my journey of writing this book, I especially extend my appreciation to David Winchester, retired professor of political studies at Capilano University, and Dr Les Marshall, currently teaching economics at Douglas College Both the institutions are located in British Columbia, Canada David was especially helpful in his comments on the book’s contents and for making it legible Les’ comments and recommendations on the contents have been helpful in giving the book pertinent and useful material for discussion in classes or policy formulation There are a large of number of people to whom I owe a debt of gratitude First, I would like to thank Mr Chen Ie Lie, retired investment banker from the Netherlands, for his insight on international financial and geopolitical affairs, particularly those relating to Europe and Southeast Asia Mr Ben Mok, retired executive of the Coca Cola-Swire Group-Cosco joint venture in China, for making me aware of the issues occurring in China Mr George Mok and Mr Wai Hung, retired businessmen living in Canada, generously shared their views on Asian affairs, particularly those relating to Hong Kong and Taiwan I thank my former colleagues and students for their valuable input on the course contents and how they should be delivered and discussed during the 15 years that I taught the course on globalization at Capilano University I owe a debt of gratitude to the independent reviewers who commented on my book outline and on the sample chapters Their advice and input are appreciated Last but not least, I express my appreciation to Ms Brigitte Schull, ix x Acknowledgements Ms Sarah Lawrence, and Ms Allison Neuburger for making the publication of this book possible I take full responsibility for any mistakes or misquotes that appear in the book and apologize for any inconvenience or embarrassment that I might have caused in misquoting or misinterpreting the information that was so generously offered www.ebook3000.com Contents A Summary Analysis of the Globalization’s Dynamism Globalization: Drivers and Effects History of Globalization: European Colonization and Bretton Woods 49 Bretton Woods International Trade and Financial Organizations 75 GATT, Rounds of Negotiations, and the World Trade Organization 97 Selected Bilateral and Regional Trade and Investment Agreements 121 The Group of Seven and Group of Twenty 147 19 xi .. .Developed Nations and the Economic Impact of Globalization Ken Moak Developed Nations and the Economic Impact of Globalization www.ebook3000.com Ken Moak... produced in the economy in one year © The Author(s) 2017 K Moak, Developed Nations and the Economic Impact of Globalization, DOI 10.1007/978-3-319-57903-0_1 2 K MOAK The US and the UK created the International... taxing the social net, and for the rising crime at home, climate change, widening of the rich–poor gap, and other socioeconomic ills Whether globalization is the culprit behind the socioeconomic