Globalization news article
In the article "A Hard Habit to Break," Newsweek's Brook Lamardiscusses the growing illegal trade in cigarettes originating from Chinaand extending to other parts of Southeast Asia. This trade has twocomponents. First, genuine foreign cigarettes from tobacco giants likeMarlboro, Philip Morris and Salem are smuggled into the country. Second,China also has a flourishing counterfeit cigarette industry. Fakecigarettes, complete with official-looking government import seals and a"Made in America" label are then sold in the black markets in Singapore,Shanghai, the Philippines and even Australia. This article illustrates a type of economic globalization. The salesof cigarettes and other tobacco products have dwindled significantly in the
Rather,globalization entails creating new markets and thus building a greaterconsumer culture. The system of local protectionismis thus not ready to absorb outside brands and limits the development ofany national industries, including tobacco products. In this article, globalization is presented as a thundering economicforce - one that is unmindful of China's "fiefdom" economic system and thepossible health consequences of saturating a market with products thatcause diseases like cancer and emphysema. This feature article illustrates many aspects of globalization. Today, however, the same companies areconcerned that the black market trade in cigarettes is eroding one of thelast few markets that are still hospitable to tobacco products. However, the WTO does not take into consideration howChina is divided into fiefdoms, giving rise to a fragmentation that isincompatible with the WTO provisions. Tobacco companies have previously tolerated the trade incounterfeit cigarettes, believing that these fake cigarettes increasedbrand recognition in the country. Inopening its markets to foreign tobacco industries, China is paving the wayfor the loss of its fiefdom-based economic system and exposes more of itscitizens to significant health risks. In this framework, globalization does not meana merging of cultures from different parts of the world. Furthermore, the influx of tobaccomultinationals will most likely drive local tobacco manufacturers out ofbusiness. In conclusion, the article presents an instance of economicglobalization, where "global" is actually defined by the interests ofmultinational corporations. Though the suspension was for economic reasons, barringthe entry of foreign cigarettes also served a social purpose, in terms ofstemming the tide of tobacco-related illnesses. Thearticle mentions, for example, how a previous government suspension ofjoint ventures with tobacco companies in the mid-1990s was applauded byhealth activists. To make up for the loss of itsNorth American market, tobacco companies have turned to China and byextension, Asia.
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