Globalization Research Paper

2375 Words10 Pages
Globalization is the result of human innovation and technological progress. Many people view globalization in different ways. Globalization refers to the widening and deepening interconnections among the world’s peoples through all forms of exchange. Some view Globalization as a process that is beneficial, a process inevitable and irreversible; nevertheless, others view it as a big problem for different cultures. A further explanation is that Globalization can be looked at from different aspects, like politically, economically, technologically, culturally. There are a few important questions that need to be asked when discussing globalization and the effects it has on the developing world. 1. How can the developing countries,…show more content…
The richest quarter of the world’s population saw its per capita GDP increase nearly six-fold during the century, while the poorest quarter experienced less than a three-fold increase. The Pros and Cons of Globalization: PROS Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster. Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth. An open economy spurs innovation with fresh ideas from abroad. Export jobs often pay more than other jobs. Unfettered capital flows give the U.S. access to foreign investment and keep interest rates low. CONS Millions of Americans have lost jobs due to imports or production shifts abroad. Most find new jobs--that pay less. Millions of others fear losing their jobs, especially at those companies operating under competitive pressure. Workers face pay-cut demands from employers, which often threaten to export jobs. Service and white-collar jobs are increasingly vulnerable to operations moving offshore. U.S. employees can lose their comparative advantage when companies build advanced factories in low-wage countries, making them as productive as those at home. Capital movements: Direct foreign investment has become the most important category. Both portfolio investment and bank credit rose but they have been more
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