Is globalization really the answer?

For my entire life I have been told that in order for any business, any community, or any country to succeed you must compete in the global marketplace. When I was first presented with this idea it made perfect sense. If I make a widget and sell it to everyone in my town, eventually there will be now one else to buy it. Therefore I must look outside my town and sell my widget to other towns.

But in todays society of local plant closures, tainted food from afar, wars over resources etc I am starting to question this theory. Currently there is a movement called the 100 mile diet. The challenge is for people to eat food that has not traveled farther then 100 miles which will result in money remaining in the local communities. Thus creating more jobs to support the increase in demand. So what would happen if we were to take this idea and apply it to other products, other industries?

The textile industry is almost extinct in Canada. It has moved to countries like China in which they can buy the materials, pay the labour, make the product, ship it back to Canada for less then it would cost a Canadian company to purchase the raw material in the first place. Twenty years ago there were over 14 textile factories in Quebec. Today there is one. So lets apply the 100 mile diet theory to this scenario.

We start buying our clothes from local factories. Demand increases resulting in new jobs. Money stays within the local company and eventually is returned into the community. Granted the shirt may cost more but the quality would be higher, the economy would eventually even out with wage increase to pay for the shirt.

I am not saying we should or ever will come to a time when we never buy something from outside our area. I am questioning if we have gone too far with globalization, and I wonder if it is possible for communities to be completely self sufficient.