A description of globalization as one of the biggest issues in the economy world today

Many of these issues are global and have the ability to escalade rapidly. World leaders are well aware of these problems. Problems like peak oil, global hunger, global warming, extinction of species, and many more are making headlines around the world. In this article, I have selected 5 major global issues that are relevant today and are threatening our global society.

A description of globalization as one of the biggest issues in the economy world today

In particular, they miss the point that the world is finite. Economists also tend to look at results too narrowly—from the point of view of a business that can expand, or a worker who has plenty of money, even though these users are not typical. In real life, the business are facing increased competition, and the worker may be laid off because of greater competition.

Globalization uses up finite resources more quickly.

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As an example, China joined the world trade organization in December Inits coal use began rising rapidly Figure 1, below. In fact, there is also a huge increase in world coal consumption Figure 2, below.

Globalization increases world carbon dioxide emissions. If the world burns its coal more quickly, and does not cut back on other fossil fuel use, carbon dioxide emissions increase.

Global Issues - The 5 Biggest Global Problems Of Today | Environmental Professionals Network

Figure 3 shows how carbon dioxide emissions have increased, relative to what might have been expected, based on the trend line for the years prior to when the Kyoto protocol was adopted in Fitted line is expected trend in emissions, based on actual trend in emissions fromequal to about 1.

Globalization makes it virtually impossible for regulators in one country to foresee the worldwide implications of their actions. Actions which would seem to reduce emissions for an individual country may indirectly encourage world trade, ramp up manufacturing in coal-producing areas, and increase emissions over all.

See my post Climate Change: Globalization acts to increase world oil prices.

Accelerating climate action

The world has undergone two sets of oil price spikes. The first one, in the to period, occurred after US oil supply began to decline in Figure 4, above and Figure 5 below. US crude oil production, based on EIA data. This was done partly by ramping up oil production in the North Sea, Alaska and Mexico sources which were already knownand partly by reducing consumption.

The reduction in consumption was accomplished by cutting back oil use for electricity, and by encouraging the use of more fuel-efficient cars.

Now, sincewe have high oil prices back, but we have a much worse problem. The reason the problem is worse now is partly because oil supply is not growing very much, due to limits we are reaching, and partly because demand is exploding due to globalization.

If we look at world oil supply, it is virtually flat. The United States and Canada together provide the slight increase in world oil supply that has occurred since Otherwise, supply has been flat since Figure 6, below.

World crude oil production based on EIA data. Part of our problem now is that with globalization, world oil demand is rising very rapidly.

Chinese buyers purchased more cars in than did European buyers. Rapidly rising world demand, together with oil supply which is barely rising, pushes world prices upward. This time, there also is no possibility of a dip in world oil demand of the type that occurred in the early s.

Even if the West drops its oil consumption greatly, the East has sufficient pent-up demand that it will make use of any oil that is made available to the market.

Because of this, oil prices cannot decrease very much, without world supply dropping off. Instead, because of diminishing returnsneeded price keeps ratcheting upward. Globalization transfers consumption of limited oil supply from developed countries to developing countries.

The way this transfer takes place is through the mechanism of high oil prices. High oil prices are particularly a problem for major oil importing countries, such as the United States, many European countries, and Japan.

Because oil is used in growing food and for commuting, a rise in oil price tends to lead to a cutback in discretionary spending, recession, and lower oil use in these countries. World oil consumption in million metric tons, divided among three areas of the world.

Developing countries are better able to use higher-priced oil than developed countries.

A description of globalization as one of the biggest issues in the economy world today

In addition, the shift of manufacturing to less developed countries increases the number of workers who can afford a motorcycle or car. Job loss plays a role in the loss of oil consumption from developed countries—see my post, Why is US Oil Consumption Lower?

Globalization transfers jobs from developed countries to less developed countries. Globalization levels the playing field, in a way that makes it hard for developed countries to compete.Jan 16,  · 10 greatest threats facing the world in A fiscal crisis in any major economy could easily have cascading global impacts." "One of the top societal risks in the report, food crises.

Jan 20,  · What are the 10 biggest global challenges?

Twelve Reasons Why Globalization is a Huge Problem | Our Finite World

Image: REUTERS/Daniel Munoz 21 Jan Several years after the crisis, the world economy is still struggling with slow growth, unconventional monetary policy in major economies, and constrained government budgets.

We also need to address the growing unease over globalization. Nov 23,  · What should be good news for the global economy has its downsides. The first global trade deal in decades shows why the next one will be even harder. The world economy in in nine.

A description of globalization as one of the biggest issues in the economy world today

May 06,  · Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty.

1. Nov 13,  · But seven years after the global financial crisis, the world is still facing sluggish economic growth and constrained government budgets. As a result, there is an overall lack of long-term investment, which has serious implications for global growth. Home» Blog» Global Issues – The 5 Biggest Global Problems Of Today As participants of a global society, we should keep ourselves educated about the current environmental issues that affect us all.

What are the 10 biggest global challenges? | World Economic Forum