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 therefor
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.

Labels: Investment, Public Policy