Does the rise of developing countries to become economic tigers, with well developed high technology industries, adversely affect developed countries?

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Level field competition creates the best results for the most people.  If a developing country can produce better, faster, cleaner, and cheaper goods and services than a developed country, the developed country can choose to compete and change the way its done things to the more efficient model, or move...

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Level field competition creates the best results for the most people.  If a developing country can produce better, faster, cleaner, and cheaper goods and services than a developed country, the developed country can choose to compete and change the way its done things to the more efficient model, or move on to hopefully higher-level goods and services. Yes, jobs will be lost.  But new jobs are created.  That only happens, though, if individuals are free to invest and develop new goods and services. Unfortunately, the reverse can also happen if undue regulation stifles innovation -- an industry can be lost, and nothing evolves to replace it.  Great Britain certainly experienced this; hopefully the US will not be following that path.

With China and India industrializing and competing with the West, the standard of living will increase for those two countries, as will the demand for resources.  If the US is smart, they will do all they can by trading so that their rapid development continues.  When resources become scarce (or rather, expensive) new technologies create new sources of resources.

 

 

 

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Although the other side of this equation is that the manufacturing and high tech service industry that relocates with this kind of globalization hurts the job market in the developed world in some permanent ways.  In addition, as the demand increases in developing countries, so does their appetite for limited and insecure resources around the world, raising prices for commodities such as oil, gold, aluminum, etc. that developed economies have come to depend on.

Once could argue that the US is already fighting a war to help secure its access to Mideast oil. As more countries' economies develop a manufacturing base and a transportation base, the demand and competition for that oil becomes more intense.  It also adds to the worldwide carbon emissions output, which affects climate change.

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Economists would say that this might hurt developed countries in the short run but that it will help all countries in the long term.

In the short term, the rise of economic tigers will take jobs away from developed countries.  We can see this happening even today as jobs that were once done in the developed countries are outsourced to the developing world.

Economists say that in the long term this helps everyone because rising standards of living in the developing world will drive demand for high value-added goods and services that are more often produced in the developed world.

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