Globalization And The Human Development Index ( Hdi )

1847 WordsMay 11, 20178 Pages
Globalization is something to be said to have either brought the world together or brought us apart. It is a debate that has been going on since it first began and how it is has affected the world has brought controversy as well. Mainly, this paper will be focusing on the economic growth that globalization has influenced. As the world is developing and has been over the past decades, certain countries have had a significant increase in economic growth but it is said that there are risks and effects of globalization. This paper will talk about how globalization effects developed countries and what countries need in order to benefit from it. Globalization is defined as a process that, based on international strategies, aims to expand…show more content…
As mentioned earlier, it is believed that globalization benefits world economies. This is because it can increase their standard of living, creates access to new markets, and even widens the wage gap, but there are some consequences as well. In the long term, there are many beneficial outcomes but short term, people may suffer, especially the poor. The poor will ultimately become poorer because there will be a decrease in employment. Globalization has often been thought to be the primary reason for income inequality within a nation. Take for example the United States of America. A growing number of American’s believe that globalization is increasing the gap between the rich and poor, even depleting those who are already poor. Essentially, making the rich even richer, and the poor even poorer. “A famous result due to Wolfgang Stolper and Paul Samuelson states that some groups will necessarily suffer long-term losses in income from free trade” (Rodrik 2011, 38). The technological advances take the jobs away from the people but make it easier for the country in the long run. A popular criticism of globalization is outsourcing. While outsourcing provides jobs to people in one country, it takes away those jobs from people of another country, leaving many without opportunities. The opposing side would point out that American consumers are able to benefit from lower prices which were made possible because of cheaper labor. Defending either side of this
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