Thursday, April 19, 2012

The most interesting part of the chapter, to me, was learning that container terminals function so thoroughly and mechanically, with little room for human error. Levinson compares trade as it was not even 50 years ago to trade as it is now- clockwork. As someone who is interested in history, I liked learning how international trade and imports and exports have unfolded over the course of the past 100 years. The author sees the development of the shipping container as a contribution to globalization in the way that it lowered transportation costs immensely. Advanced containerships are much more efficient than the smaller ships of yesteryear, and also require less labor and time to load and unload. Now, business men see transportation as practically costless. Containers also account for the elimination of piece-by-piece freight handling, ultimately leading to less time spent on shipping. Levinson argues that the container stimulated trade and economic development. Historically speaking, transportation costs have always been very high, so trade was conducted amongst neighbors. In todays global economies, Levinson argues, incredibly low transportation costs allow companies to move to countries where there are low labor costs, abandoning economies that may have flourished previously. This economic geographical reorganization is what Levinson argues is the short run effect of the container. Levinson is unclear about what this has specifically to do with national income, but companies leaving for other countries can leave many people without jobs. Theoretically speaking, this would lower inflation. As we can see from the United States position at present, this would render the country in a recession.

No comments:

Post a Comment