Re: your views on globalization

Why the comparison between "Portugal" and "McDonalds"? 

Portugal does not make wine, Portuguese vitners make wine. Who may sell it to 
the British to make a profit. If that is comparative advantage then isn't 
Macdonald's raising cattle in Guatemala comparable? 

The difference of course is that in the latter case some of the profit goes to 
US stock holders, while Portuguese vitners may or may not have US stock 
holders. Some of the profit stays in the Guatemala as income for intermediaries 
(lease payment), and of course wages, etc. But usually that would be a smaller 
proportion than that accruing to "core-like" nodes of the commodity chain.

I don't see an analytical difference between the two scenarios other than 
quantitative difference. Is this where quantity leads to qualitative 
difference? Is that the point being made?

Krishnendu Ray

>>> "Richard K. Moore" <richard@cyberjournal.org> 04/10/01 11:26AM >>>

4/10/2001, Paul Riesz wrote:
    > Though the promoters of globalization might pursue many
    different goals, their BASIC one is still the opening up of
    economies to foreign trade and any resulting benefits can
    only come from making use of comparative advantages.

If Portugal can make wine more efficiently than Britain, and if Portugal 
exports wine, accruing a profit to the Portuguese economy, then ~that~ is what 
'comparative advantage' is about.  If MacDonalds leases land in Guatemala, 
raises cattle there, and is able to sell cheaper hamburgers in Detroit, the 
benefit goes not to Guatemala but to MacDonalds.  This is what globalization is 
about, what is intended to be about, and it has nothing to do with the 
principle of comparative advantage. 


    > My proposals are not intended for a different world, but
    could - and might - have a reasonable chance of being
    adopted in the not too distant future.

What makes you think they have any reasonable chance?  They would amount to a 
frontal assault on the whole capitalist system.

sorry,
rkm
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