How A Successful Tourism Industry Led to Globalization

Most of us have heard the word “globalization” widely used in a variety of contexts over the past few years. But what is the actual definition of this commonly used term? Merriam-Webster defines globalization as, “The act or process of globalizing: the state of being globalized; especially: the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.” Now that we’ve established the true definition of globalization, it’s probably easy to see how it plays a vital role in the tourism industry. After all, people visiting other countries would naturally be engaging in globalization as they purchase products and services in their travels. But what may not be as obvious is how successful tourism led to globalization. That is the topic we’ll explore in this blog.

Although it’s hard to say exactly when the tourism industry began, many historians would agree that it probably started when well-to-do citizens of ancient Rome began spending their summers in other parts of the region to escape the hustle and bustle of what was then (and is, even now) the metropolis of Rome. That would mean that tourism is, at the very least, about 2,000 years old. But the end of the Roman Empire also meant the end of tourism, albeit only for a few hundred years, as unrest in that region made travel of any sort a risky proposition at best. A few hundred years later, during medieval times, the tourism industry experienced a rebirth when large groups of people began to make holy pilgrimages. That meant that those people needed places to eat and sleep along the way. Another few hundred years later, people began to travel for other reasons – such as to improve their health and to view art, architecture, and visit historic locations. It was at this time, during the Industrial Revolution, when the tourism industry began to take the familiar form that we know today. Methods of transportation were developed, as were hotels and restaurants, to cater to tourists. Finally, beginning in the 1960s, as aircraft and ocean liners became more commonplace and more affordable for the masses, tourism became a global industry. In our day and age, if you have the time and the money, you can arrange to travel, quite literally, anywhere on the planet.

And, as it turns out, many people DO have the time and the money. According to The Statistics Portal, between the years of 2006 and 2017, the travel and tourism industry contributed $8.27 trillion dollars to the global economy. The greatest contributors include North America, the European Union, and North East Asia. While these regions continue to lead the tourism charge, other less-likely countries are making their own mark in the industry, undoubtedly due to the lucrative possibilities that tourism brings with it. Some of the most notable are African countries, such as Namibia, Zambia and Angola, to name a few.

In the KOF Globalization Index of the 100 Most Globalized Countries in 2017, it should come as no surprise that leading the list are many EU countries, including Netherlands, Belgium, Austria, Switzerland, Denmark, Sweden, France, and others. Also on the list – although further down than the EU countries – are Canada and the U.S. The KOF Index of Globalization takes into account three key indicators: economic, social and political. They define globalization as, “… the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods.” While there’s no doubt about the economic impact that tourism has on the global scale, the other indicators of globalization are harder to measure – namely the social and political influences that the tourism industry brings to the global stage. But if we measure the impact of tourism on globalization with regard to the flow of people, information and ideas, as well as capital and goods, we can say with a certain level of certainty that the success of the tourism industry has more than likely led the way – both directly and indirectly – to globalization.

The Last Days Of America

In studying American history one can conclude that during the darkest hours of the American Revolution there had to have been Divine intervention that guided General Washington to persevere and eventually triumph in securing victory for the United States. In many instances when all hope seemed to be lost the revolution was saved not only by the shrewd and calculating determination of Washington but a higher power that enabled the United States to overcome adversity under fire.

In the ensuing years much has changed since our humble beginning. That Divine intervention that steadied the hands of our Founding Fathers has been cast aside by the greed of man. One has to wonder though about human nature. Is it human nature once people are in a position of power to try and gain more control of that power? And, does power always corrupt the individual in authority considering the times of today? Sad to say in too many instances for over 45 years we have been witness to unparallel corruption in our governmental officials. The Divine guidance has been lost in obscurity and this nation continues to flounder in troubled waters.

The integrity and unselfish character of Washington helped forge what America became. Other men like Thomas Jefferson, Ben Franklin and John Adams embodied the true greatness of a new nation. As we near the end of the second decade of the 21st century Americas greatness has withered on that vine of lost opportunities. From the last 148 years of disingenuous policies and without the slightest concern for the American public the erosion of Americas greatness is almost complete. The blindness of too many to see and the willingness to accept what is continues to accelerate the U.S. departure from greatness to mediocrity.

We have forsaken this nation. Too many of our rights have been stripped away. They have been turned into privileges that we always have to pay. This nation has truly lost it’s way. The individuals we choose to represent us too many times we have chosen unwisely. And, too many times those that could make a difference have always been denied the opportunity to do so.

By all indications have pointed to the fact that the last days of America are upon us. When we have an Administration and too many members of Congress incapable of altering the course of this nation is the reality we face today. Gone are the character and integrity that typified the moral compass this nation had over 200 years ago.

Like all great nations through-out history they have never lasted. A striking parallel between the great power of Ancient Rome is the fact that for a long time Rome was a Democracy, that is up until the time of Julius Caesar. It was Julius Caesar though that established a prime example of political rule of a charismatic strongman whose rationale is the need to rule by force, establishing a violent social order and have a regime involving a strong military role in government. We can see a distinct correlation between Julius Caesar and one Donald Trump. When Julius Caesar came into power was the start of the decline of the Roman Empire.

The similarities between both men is too apparent to ignore. And if Trump remains in power the hand writing is on the wall, sort of speaking, that the last days of America are all readily upon us. We the people have to understand that history does repeat with outcomes very similar to the past. That is unless we have the courage to recognize how we can change the course this nation is on. There is a way to do so. But, the resolve to put in play the reforms to alter the course this nation is on has yet to be displayed.

How Trump’s Trade War Will Hurt You

Trump followed through on one of his campaign promises by starting a trade war with our trading partners to help reduce our enormous trade deficits. The first shots fired in this war are tariffs on steel and aluminum imports in an attempt to help American steel and aluminum producers.

As with most wars, this one will have unintended consequences that will actually hurt the people it’s intended to help and make the problem worse. Trump’s presumed intention is to help the American economy by balancing the trade deficits, protect American companies and save American manufacturing jobs. In practice, a tariff on imports will make all three of these problems worse for these reasons:

American Manufacturers Will Be Less Competitive

If you want to make American manufacturers more competitive, then your aim should be to lower their costs of production. Since aluminum and steel are used as a raw material in the production of many manufactured goods, this tariff is crippling. Any company that uses aluminum or steel (cars, airplanes, appliances, construction) now has to pay more in order to produce their product. Many of these companies are hanging on by a thread trying to compete with lower cost areas of the world. Now their costs just went up even more and many will go out of business as a result.

American Steel and Aluminum Producers lose their American customers

While I am sure somewhere in Trump’s brain he thinks he is helping American Steel and Aluminum producers, he is actually hurting them. Even though these producers will see higher prices for their products, they will suffer because THEIR customers – the manufacturers that use steel and aluminum – will go out of business. Obviously, not all of them will go out of business, but even the healthier companies will scale back their business due to lower sales. Why will their sales be lower? That brings us to the final point…

Consumers pay more and lose their jobs

Because the costs of production for these American manufacturing companies will increase, many will have no choice but to increase the price of their products. Consumers, especially American consumers, don’t like higher prices. Most won’t know why prices went up but they will speak with their wallets by purchasing fewer of these products. As a result, American manufacturers will experience lower sales.

What happens when a company’s sales decline? Often, they lay some workers. If you’re afraid that robotics and machines are replacing humans jobs, wait until you see how fast those jobs disappear in a struggling economy with declining revenue.

And that is the irony of this bone-headed Trump move: he thinks he is helping Americans “win” again, but he is actually giving them higher prices and a pink slip.