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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: CommanderCricket who wrote (102138)6/5/2008 12:47:25 PM
From: JimisJim  Read Replies (1) of 206214
 
Cricket: you have touched on what I think is a very important and overlooked aspect to "the end of cheap oil."

With the coming of the end of cheap energy, this country and the world will begin to look increasingly large when contemplating traveling or transporting people and goods across the US and around the world. It changes the entire dynamic (or notion) that things like manufacturing are a global economy as long as shipping/transportation costs are cheap enough to allow those activities to relocate anywhere in the world.

As the cost of shipping/transportation increases, the cost of labor begins to have less and less impact on decisions regarding the location of manufacturing activities. It becomes cheaper to do such things closer to the end market even if the labor costs are higher than they would be some place else.

Very interesting, and not something I've seen mentioned much, but could signal a major shift in how "globalization" plays out.

Jim
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