As a student who is interested in both economic and sociological aspects of globalization, some of the most interesting things to watch in international relations have been the wars going on between different nations and trading blocks regarding free trade and increasingly open markets. One of the most attractive elements of globalization is that it allows large multinational companies to increase their profits by moving around the world, taking advantage of other countries’ abundance of resources, labour, manufacturing, and so on. Agreements like NAFTA quickly lead to certain kinds of jobs leaving the country for places where the same work can be done for cheaper, and developing countries like Vietnam and Colombia often become dependent on a small number of resources for export. A growing conflict has been brewing between China and the United States because the Americans feel that China is using state control to artificially lower their currency, thus making their exports particularly cheap for consumers around the world, and making it harder for American industries to compete. The United States Congress just approved a bill approving the use of import duties on countries with “fundamentally undervalued currencies”, a clear reference to China. It is an interesting move, in part because the Americans have been accused several times of adopting their own protectionist measures, particularly in their lumber and steel industries. Another reason it is an interesting subject is that it highlights the contrasting interests of nations and multinational corporations.
The article from : http://www.theglobeandmail.com/report-on-business/economy/us-panel-backs-china-currency-bill/article1723260/