Consequences of Global Economic Crisis

​When the nations in the world simultaneously devalue their currencies, speculators and people are forced to turn to the Swiss’ francs, the most stable currency in the world. In the risk of a sharp decrease in exports due to high increase in franc’s exchange rate, the Switzerland’s Central Bank was forced to sell francs to the market to reserve it exchange rate. Switzerland also stops printing money to save their economy which is oriented towards export.

According the Swiss economic analysis experts, the commercial war will come after the currency war. In western countries nowadays, the idea of protection is increasing by the pressure from the Tea Party movement in the United States, also known as the movement of social suspicion against the Federal government and taxes which is carried out under the President Obama and right-wing populism in Europe. These political movements reflect the indignation of the people caused by the fact that the industries and jobs are moved outside the national borders due to the impact of globalization.

It’s the "industrialization reduction” that cause the failure of the struggle against unemployment in the United States. Economic experts consider the U.S. economy as the "bubble economy" with no ability to create jobs.

With the reasons for labor market protection, the tendency to criticize free commercial in western nations are rising to oppose moving the industrial manufactures, production tools, the jobs mentioned above of large corporations out of the countries’ territory. Those above movements also appeal to the re-industrialization in the Western countries and protection for strategic industries by severely responding to the international division of labor. This goes along with the rise of protectionism. The ecological movements in these countries also focus on struggling this way, with the promotion of bringing production back into the national territory in order to minimize the damage from transportation activities.

The United States is one of the member countries of the World Trade Organization who suggests the globalization but turns back to self-protection methods with the introduction of a range of methods to protect the domestic goods as well as setting the tariffs. European countries also have similar actions.

In summary, the tendency that goes against the above-mentioned process of globalization entails the refusal in mass immigration issue of western people. That matter is that mass immigration would result in the collapse of the labor market and increase in burden on public budgets of these countries.

Source: Vietnam Government Portal