Economic Disadvantages Of Globalization

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Oxford Dictionary defines globalization as the process enabling financial and investment markets to operate internationally and largely, as a result of deregulation and improved communications. Many countries export their own products and import products that they cannot produce in their countries. According to a 2010 Federal Reserve Bank of San Francisco report, approximately 35.6% of all clothing and shoes sold in the United States were actually manufactured in China, compared to just 3.4% made domestically (Kuepper, 2017). Many countries rely on the globalization of the economy for not only domestic economic growth, but also international economic growth. Some people think globalization tends to contribute to an unstabilized economy among people and nations. However, it creates several advantages for individuals and nations. First of all, even though globalization has made the wealthy richer while making the non-wealthy poorer, the globalization of the economy can influence many people positively. Through international trade, people can acquire cheaper goods and services than in the past. Because raw materials and labour are cheaper in developing countries, businesses are able to manufacture products cheaper than if they were made domestically. As a result, we as a consumer pay less for the product. Companies which produce cell phones, televisions, and other electronic devices built factories in China and Vietnam to manufacture their products. In addition to obtaining cheap goods and services, globalization can contribute to more job opportunities overseas. Increased globalization influences the labor market and creates new jobs. Then, many people can get new jobs which were not popular in the past. Since 2012, many countries have created specific jobs, such as market research analysts, Interpreter translators, and cartographers for approximately 1 million people because globalization contributes to make new jobs (Sentz, 2016). Also, it allows people to have the opportunity to acquire goods from other countries that we don’t have in own country because of world trade. Some countries do not have the ability to create certain goods domestically, such as mangoes, avocados, bananas, papayas, etc.
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