In the article "A Hard Habit to Break," Newsweek's Brook Lamar
discusses the growing illegal trade in cigarettes originating from China
and extending to other parts of Southeast Asia. This trade has two
components. First, genuine foreign cigarettes from tobacco giants like
Marlboro, Philip Morris and Salem are smuggled into the country. Second,
China also has a flourishing counterfeit cigarette industry. Fake
cigarettes, 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 sales
of cigarettes and other tobacco products have dwindled significantly in the
United States due to health campaigns. To make up for the loss of its
North American market, tobacco companies have turned to China and by
extension, Asia. Tobacco companies have previously tolerated the trade in
counterfeit cigarettes, believing that these fake cigarettes increased
brand recognition in the country. Today, however, the same companies are
concerned that the black market trade in cigarettes is eroding one of the
last few markets that are still hospitable to tobacco products.
The article also uses the tobacco trade to illustrate the limitations
of economic globalization organizations such as the World Trade
Organization (WTO), which was supposed to open countries such as China to
foreign investment. However, the WTO does not take into consideration how
China is divided into fiefdoms, giving rise to a fragmentation that is
incompatible with the WTO provisions. The system of local protectionism
is thus not ready to absorb outside brands and limits the development of
any national industries, including tobacco products.
This feature article illustrates many aspects of globalization. The
article mentio...