Globalization


Improvements in communications and distribution of goods and services

Leads to

Increased benefits to the lowest marginal-cost producers,

And therefore

Increases the volume supplied by the lowest marginal-cost producers.

Concentration of production

Leads to

Concentrations of wealth

Concentrations of wealth

Lead to

demographic and cultural changes.

Also,

Increasing supply from the lowest marginal-cost producers

Leads to

lower prices.

Lower prices

Lead to

Reduction or elimination of the profit potential for less efficient producers,

and therefore

reduces the number of producers

As the number of producers shrinks

And

The distribution volumes of the lowest marginal-cost producers increases,

Then

The ratio of employees to employers increases.

This demographic shift

Leads to

a gradual, or sometimes rapid, cultural shift.

In addition,

Economies of scale (a core strategy in the minimization of marginal-costs)

Lead to

consolidation.

Gloablization has clear advantages as measured by efficiency and profitability, however, also involves the consolidation/alignment of cultures, practices, language, currencies, and other social and demographic factors.
If people want to lessen these cultural shifts caused by globalization, the dynamics or boundaries of capitalism would have to be modified:
either economies of scale would have to be disassociated with competitive advantage, or the regulations concerning consolidation and/or distribution will have to be more restrictive.
The first option is not realistic, and the second option would limit freedom to trade. Neither option appears very attractive.

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