Barilla pasta, angel hair is type of pasta manufactured in Parma, Italy by Barilla Group. One box of barilla pasta costs $2.31. The GDP per capita of Italy in 2009 was $ 34,954.893 (IMF, 2010). This shows that Italy is a strong economy.
Mauna Loa Red 46x20 Double Cushion: it was made in Griffin, Georgia. It costs $34.99. The Double settee cushion is filled with soft polyester for ultimate comfort. It is also mold, mildew, and UV resistant and hence fit for Indoor or outdoor use. The cushions measures 46"L x 20"W x 4"D. The estimated per capita income of Griffin in 2008 was $18,803
Chaise Cover: this was made in Weston, Florida. The 100% cotton costs $19.99. The Gross Domestic Product (GDP) of Florida as of 2007 was $734.5 billion. Its GDP is the fourth largest economy in the United States. This shows high purchasing power.
Sony Bravia 32" Class LCD 720p 60Hz HDTV, KDL-32BX300. It costs $398.00. It has 6:9 LCD panel with 1366 x 768 HD resolution. It also has a built in ATSC digital/NTSC analog tuner. It was manufactured in Nitra City, Slovakia. In 2001 the GDP of Nitra city stood at 5070.3274 us dollars (urban audit, 2010).The GDP per capita of Slovakia in 2009 was $16,315.415 (IMF, 2010) and shows that Slovakian economy is growing fast.
Amigo foods store
Guarana antarctica is manufactured in São Paulo, Brazil. Two litre pack costs $4.99. San Paulo has a very high GDP of R$ 282,852,338,000. It is the 10th richest city in the world (Estadao, 2010).
East west bazaar
Emami gold gift pack: This product was manufactured in Assam state largest city, Guwahati, This gift box contains: Emami Gold Turmeric Skin Cream 50ml (1pc), Emami Gold Turmeric Saffron Soap 75g (1pc), Emami Gold Turmeric Talc 100g (1pc), and Emami Gold Gel with 24K Gold 10ml (1pc). The 235g pack is sold at $ 9.99. Assam's GDP in 2004 is estimated at $13 billion in current prices (Ganesan, 2007). This shows that there is less purchasing power in this state since its GDP is below India's' average GDP.
KTC coconut oil: this product was manufactured in West Midlands, UK. The 500ml, 100% pure coconut oil was sold at $3.49. The GDP per capita for west midlands as of 2008 was £17,463. The GDP of UK in 2009 was $2.159 trillion.
Costa Rican store
Lizano salsa half gallon: manufactured in Guanacaste, Costa Rica was sold at $ Guanacaste, Costa Rica $29.99. The total GDP (ppp) of Costa Rica as of 2009 was $48.881 billion (IMF, 2010).
Handmade Porcelain Mug: manufactured in Playa Junquillal, Costa Rica. The price of the porcelain mug was $23.00.
Globalization of Merchandise Production
Globalization refers to the process by which regional economies, societies, and cultures have become included through a global network of communication, transportation, and trade. The term can also used to refer particularly to economic globalization i.e. the incorporation of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology (Bhagwati, 2004). Globalization is propelled by a combination of economic, technological, sociocultural, political, and biological factors (Sheila, 10). Globalization is a two-way street. Countries should not send products into other countries and build up reserves without giving up something. China, considered an export giant, for example has been sharply criticized by other economies due to its rising trade surplus. China has put in place currency controls to manage currencies, attempting to make them weaker and their products competitive.
The US position is that keeping the Chinese currency devalued- by buying dollar based assets with Chinese currency, creates dangerous bubbles in china (Dapice, 2010). This means that economical slowdown is unavoidable for china due to its excess capacity in some commodity like steel and infrastructure as it will find it tricky to change from export to domestic consumption if there is little need for housing and industrial expansion.
Strengthening of a currency shifts manufacturing to other parts of the world. For example: more than a century ago, US trade balance was in bad state partly because of high fiscal deficits (dapine, 2010). Japan was the export giant then, with its auto and electronic export. This lead to negotiation to manage strengthening of Japanese and European currencies. This caused manufacturing to shift to other parts of Asia. Although trade balance with Japan did not improve much, dollar devaluation succeeded in lowering the deficit.
In summary, globalization has both advantages and disadvantages. Flooding of china merchandize in US market was evident in all the stores visited. They were very cheap hence were easily affordable as compared to US manufactured merchandize. Russian and Canadian merchandize were rare in grocery stores and big-box stores. This could be due to the negative effects of globalization. If china strengthens its currency it will lead to devaluation of the dollar and hence lowering the existing fiscal deficits.