Globalization : The Globalization Story

1361 WordsMar 30, 20176 Pages
The Globalization Story Most portrayals of globalization emphasize a natural and progressive view of increased international integration as a result of developments in transport and communication. As this occurs, it is important to remember that such integration is part of the larger historical process of industrialization and, like industrialization, globalization is the product of choices made by powerful actors. As a result of these choices, life has changed all over the world, but these changes do not affect everyone in the same way. Economic capacity gives transnational corporations and the leaders of powerful industrial nations the power to promote increased trade and advance communications, which they do to benefit their own…show more content…
At the same time, workers in industries such as manufacturing are losing their jobs. This happens because transnational corporations are able to pick and choose where their workers come from. Due to reduced trade barriers, these corporations can move factories out of Western countries such as Canada and the US and into countries without minimum wage laws or stringent labour practices. Cheap labour enables them to produce goods inexpensively and make higher profits. The result is an ever-increasing income gap between different kinds of workers. This income gap is also apparent between nations. As countries with resources for advanced communication and transportation take advantage of new global markets, the economies of many developing nations are left behind. The resulting increase in global inequality was noted by the United Nations (UN) in its 1992 Development Program Report, which declared that the richest 20 percent of the world 's population earn over 82 percent of the world 's income. Movers and Shakers As mentioned above, globalization promotes the movement of production to certain cost-effective sites. During this process, workers often are forced to move as well, in order to find jobs within growing industrialized areas. This movement is emotionally, financially and culturally traumatic. In some areas where workers move and cannot afford to resettle, urban slums develop. These slums are overcrowded,
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