Sunday, March 19, 2017

Globalization and Competition

If people opt for globalization, they need to compete. The alternative to this is protectionism. Regulations can affect a local economy's ability to compete on a global scale. Examples include building regulations and workers compensation. For example, does a competing economy require compensation coverage for its workers and what does it cost? One solution to this is reducing the costs of compensation through education. Sometimes people take more risks when insured.

Building regulations can become cumbersome. Regulations such as these were put in place because of a lack of regulation and the resulting consequences. However, as is often the case with bureaucracies, special interests can become a problem over time and the regulators can be inefficient. The regulators, such as inspectors, need to minimize control issues and facilitate development.

Michigan has recently reduced several regulatory barriers to competition. There can be negative consequences, such as environmental concerns. On the other hand, globalization has environmental effects as well.

Facilities designs need to be efficient in order to minimize waste such as scrap building materials. Some of the safety and energy efficiency requirements are probably a bit excessive. Inspections should be as non-serial as possible. Contractors build their reputations on quality, and this should be taken into consideration. Companies need many incentives to build domestic facilities, as competing economies may offer more competitive incentives.

Globalization and Competition

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