Globalization is good, right?
It breaks down barriers and allows the entire world to operate a global economy.
The world becomes more efficient this way.
It allows China to manufacture goods cheaper than the United States.
It also allows the United to focus on it’s intellectual services.
So it must be good.
What Is Globalization?
Here’s the definition from Wikipedia:
Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture.
It’s a concept that was brought up by Pietra Rivoli in his book The Travels of a T-Shirt in the Global Economy.
That is an affiliate link so Amazon pays me a commission if you buy through that link.
But it’s actually an interesting book that follows the complete life cycle of a t-shirt to illustrate the concept of globalization.
What’s The Problem With Globalization.
When a car manufacturer relocates from Detroit, Michigan to Mexico the factory workers don’t go to Mexico.
The factory workers lose their jobs.
So the investors make more money but that doesn’t help the factory worker building the car.
What’s the solution?
Warren Buffet was asked this question during the Berkshire Hathaway shareholder meeting this year.
Here’s part of his answer.
“We have to have policies that take care of the people who become roadkill [because of free trade],” Buffett said. “Because it doesn’t make any difference to me if my life is miserable because I’ve been put out of business by something that’s good for 320-some million people in some sort of infinitesimal way and it’s messed up my life.”
Warren Buffet’s business partner, Charlie Munger, had a colder answer.
“I’m afraid that a capitalist system is always going to hurt some people as it modifies and improves. There’s no way to avoid it.”
You can watch his full answer here. It’s a very good question and a good answer.
I don’t know about you but I don’t want to wait and hope the government will take care of me.
How Do You Prepare For Getting Globalized?
I’m not sure globalized is a word but I’m using it anyway.
So how do you stay ahead of the game?
You don’t want to retire early unless it’s on your terms and you have ridiculous net worth.
The answer is education. I know you thought learning was over when you graduated.
I hate to tell you this but it’s not.
You have to continuously learn new skills to be able to adapt and survive.
If that factory worker in Michigan had other skills like repairing computers, he would have been able to switch careers.
It may not have been an easy switch but it’s better than hoping the government will take care of you.
Don’t let globalization discourage you.
Be aware that it will continue to happen no matter what we do.
Even the President (any president) can’t stop it.
So prepare yourself and continue to improve yourself every day and you’ll be fine.
Do you know of anyone that was globalized?
If so, let me know what happened in the comments below.
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