For the consumer, globalization means more selection, more competition, and therefore, better pricing. This is one of the key reasons for our restrained inflation outlook. For the unskilled worker, globalization means foreign competition for his or her job. There is no way that an American company can compete in the global marketplace paying a wage for a job that can be done elsewhere for less. The unskilled, uneducated worker is bound to be an anxious and poor consumer for some time to come.
Globalization is an inevitable, evolutionary force that is redefining the economic landscape.
For the distributor, globalization may mean declining margins. While raw materials costs may increase, the distributor will have a limited ability to pass along these cost increases to the price sensitive consumer. After all, they may have cheaper alternatives. A second major current which is having a slowing effect on the economy is poor financial health. The economy is bloated, overweight, and is being asked to run a marathon.