Globalization and Natural Resources

Will increased globalization cause greater consumption of the earths resources? Could the depletion of
raw materials slow the advance of globalization?

Globalization is not only spreading ideas and culture, but it is industrializing and modernizing
many previously agrarian countries. Countries like India and China are gaining more knowledge and
wealth due to globalization. These countries now have the capability to purchase more materials with
their newly acquired wealth. This directly translates into more cars, more fuel consumption, more
consumer goods, more of everything. Increasing trends of consumption in the world could conceivably
cause shortages in natural resources. According to scholarly models, natural resources have a finite limit
which will eventually influence global population, energy output and consumerism. Low availability of
raw materials might not be in the near future, but if globalization continues to modernize countries at a
steep rate, accessibility to resources may become an issue in ten to twenty years. The demand for oil
will eventually super secede oil supplies. Since the world economy is dependent on oil and globalization
is dependent on trade, the depletion of oil could reverse globalization. To a large degree the pace of
globalization will directly correspond to the consumption and depletion of natural resources.
Could technology and globalization help solve resource problems caused by globalization?
Globalization could be helpful when a serious shortage in raw materials arises. Since globalization
connects the world and allows the exchange of ideas, more people should be able to help solve
problems associated with natural resources. For example, more scientists from around the world would
be able to work on a common goal. Communication caused by globalization would theoretically
decrease the time required to solve dilemmas. Therefore, given enough time globalization could help
solve the worlds problem.
Definitions and key features
of natural resources
Natural resources are difficult to define precisely,particularly in the context of international trade. Most
people have an intuitive idea of what natural resources are, but common sense definitions cannot be
relied upon since they eventually run into problems when dealing with ambiguous cases. For example,
crude oil and wood are clearly natural resources, but it is less obvious how intermediate and final goods
made from these products should be classified.All goods either embody natural resources
(e.g.automobiles contain iron ore) or require resources for their production (e.g. food crops require land
and water to grow), so all goods could conceivably be classified as natural resources. Such an approach
would be logically consistent but otherwise unenlightening. At another extreme, one could choose to
focus strictly on resources in their natural state. However, even clear-cut examples of natural resources
would be difficult to classify as such under this approach, since most resources require at least some
processing before they can be traded or consumed. Regardless of the choice of definition, the line of
demarcation between natural resources and other goods will always be somewhat arbitrary. Definitions
and key features of natural resources Natural resources are difficult to define precisely,particularly in
the context of international trade. Most people have an intuitive idea of what natural resources are, but
common sense definitions cannot be relied upon since they eventually run into problems when
dealing with ambiguous cases. For example, crude oil and wood are clearly natural resources, but it is
less obvious how intermediate and final goods made from these products should be classified.All goods
either embody natural resources (e.g. automobiles contain iron ore) or require resources for their
production (e.g. food crops require land and water to grow), so all goods could conceivably be classified
as natural resources. Such an approach would be logically consistent but otherwise unenlightening. At
another extreme, one could choose to focus strictly on resources in their natural state. However, even
clear-cut examples of natural resources would be difficult to classify as such under this approach, since
most resources require at least some processing before they can be traded or consumed. Regardless of
the choice of definition, the line of demarcation between natural resources andDefinitions and key
features of natural resources .Natural resources are difficult to define precisely, particularly in the
context of international trade. Most people have an intuitive idea of what natural resources are, but
common sense definitions cannot be relied upon since they eventually run into problems when
dealing with ambiguous cases. For example, crude oil and wood are clearly natural resources, but it is
less obvious how intermediate and final goods made from these products should be classified.All goods
either embody natural resources (e.g.automobiles contain iron ore) or require resources for their
production (e.g. food crops require land and water to grow), so all goods could conceivably be classified
as natural resources. Such an approach would be logically consistent but otherwise unenlightening. At
another extreme, one could choose to focus strictly on resources in their natural state. However, even
clear-cut examples of natural resources would be difficult to classify assuch under this approach, since
most resources require at least some processing before they can be traded or consumed. Regardless of
the choice of definition, the line of demarcation between natural resources and other goods will always
be somewhat arbitrary. other goods will always be somewhat arbitrary.
International migration
Reverse brain drain is the movement of human capital from a more developed country to a less
developed country. It is considered a logical outcome of a calculated strategy where migrants accumulate
savings, also known as remittances, and develop skills overseas that can be used in their home
country.[203]
Reverse brain drain can occur when scientists, engineers, or other intellectual elites migrate to a less
developed country to learn in its universities, perform research, or gain working experience in areas
where education and employment opportunities are limited in their home country. These professionals
then return to their home country after several years of experience to start a related business, teach in a
university, or work for a multi-national in their home country
Reverse brain drain is the movement of human capital from a more developed country to a less
developed country. It is considered a logical outcome of a calculated strategy where migrants
accumulate savings, also known as remittances, and develop skills overseas that can be used in their
home country.[203]
Reverse brain drain can occur when scientists, engineers, or other intellectual elites migrate to a less
developed country to learn in its universities, perform research, or gain working experience in areas
where education and employment opportunities are limited in their home country. These professionals
then return to their home country after several years of experience to start a related business, teach in a
university, or work for a multi-national in their home country.
A transnational marriage is a marriage between two people from different countries. A variety of special
issues arise in marriages between people from different countries, including those related to citizenship
and culture, which add complexity and challenges to these kinds of relationships. In an age of increasing
globalization, where a growing number of people have ties to networks of people and places across the
globe, rather than to a current geographic location, people are increasingly marrying across national
boundaries. Transnational marriage is a by-product of the movement and migration of people.
Global democracy
Main article: Democratic globalization
Democratic globalization is a movement towards an institutional system of global democracy that would
give world citizens a say in political organizations. This would, in their view, bypass nation-states,
corporate oligopolies, ideological Non-governmental organizations (NGO), political cults and mafias. One
of its most prolific proponents is the British political thinker David Held. Advocates of democratic
globalization argue that economic expansion and development should be the first phase of democratic
globalization, which is to be followed by a phase of building global political institutions. Dr. Francesco
Stipo, Director of the United States Association of the Club of Rome, advocates unifying nations under a
world government, suggesting that it "should reflect the political and economic balances of world
nations. A world confederation would not supersede the authority of the State governments but rather
complement it, as both the States and the world authority would have power within their sphere of
competence".[216] Former Canadian Senator Douglas Roche, O.C., viewed globalization as inevitable
and advocated creating institutions such as a directly elected United Nations Parliamentary Assembly to
exercise oversight over unelected international bodies.
Biggest transnational companies
Jul 10th 2012, 20:01 by The Economist online

THE giant American conglomerate General Electric (GE) holds more assets abroad than any other non-
financial firm in the worldover $500 billion worth. Its foreign assets make up over 70% of its total. Of
the 100 companies with the most foreign assets, 17 hold over 90% of their assets abroad, including
ArcelorMittal, Nestl, Anheuser-Busch InBev and Vodafone. Their share of foreign sales is also
substantially larger than GE's. More than half of GEs 300,000-strong workforce is based outside
America; Toyota, which has slightly more employees, only has 38% of its 326,000 workers abroad. The
Japanese carmaker is one of only two Asian firms to make it into the top 20 transnational companies by
assets; Honda, another carmaker, ranks 19th. Three of the top five firms are oil companies. Exxon Mobil
had the largest foreign sales last year at $317 billion, 73% of its total. Transnational firms benefited from
the more favourable economic climates in emerging markets, and some developed markets, like
America. According to the latest World Investment Report from the UN Conference on Trade and
Development (UNCTAD), production by foreign affiliates increased in 2011: sales rose by 9% to $28
trillion; employment rose by 8% to 69m; and total assets rose from around $75 trillion in the previous
two years to $82 trillion. Thanks mainly to economic uncertainty, UNCTAD reckons transnational
companies are hoarding some $5 trillion in cash. This could lead to a surge in foreign direct investment.
Though firms might instead opt for liquidity, or to pay off debts or pay out dividends to maintain share
prices.