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
Globalization is difficult to simply define due to the variety of changing definitions that have been established over previous decades. Hamilton and Webster (2012) suggest that globalization is the connection between nations, defining globalization as a process in which barriers are reduced in order to encourage exchanges between countries. This view proposes that globalization refers very much so to the trade barriers and the improved communications between countries in order to ensure the world is unified. Globalization increases economic activity across the world and opens up markets for foreign investment.
We agree to a large extent to the statement, "The benefits of globalization outweigh its cost." Even though there are some
Kofi Annan, a UN diplomat, once said,“...that arguing against globalization is like arguing against the laws of gravity.” He is undoubtedly correct in this assessment. Indeed, globalization is no longer something to be skeptical of, it is very real and is changing our world exponentially. The affects of globalization, however, continue to be a heated topic for debate. Proponents praise the overall economic lift provided by free trade, the diffusion of cultures, and the spread of democracy and capitalism. Critics cry foul at the loss of national identity, the accelerated and uncontrolled use of natural resources, and the redistribution of wealth into the hands of a few very powerful people and corporations. Globalization is a
“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.
For some people, globalization is so feared it is synonymous with world destruction. In the end, for all we know, maybe this will be proven before it is over. In reality however, there are many good things that have resulted from globalization(1, Premise). Let’s for a moment focus on the economy, even though there are many other advantages that have been brought forward that will also be discussed. Many Americans do not appreciate how efficient our markets are, in this case efficiency in reference to supply and demand is number one. These efficient markets allow economies to grow. As many have learned in a global world, when one economy grows, it spurs growth in all the other economies
Some view globalization as being inevitable and key to our economic future. It has the potential of making societies richer through trade, and creates knowledge and understanding to people around
Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty. But the opponents general complaint about globalization is that it has made the rich richer while making the non-rich poorer. “It is wonderful for managers, owners and investors, but hell on workers and nature.”
Skeptics think that globalization is just talk. They think the world has stayed the same just like all previous years and nothing tremendous has changed. Skeptics believe that worldwide trade is a small percentage of the income in most countries. A good amount of economic exchange is between regions and not worldwide. Skeptics stray far political left because they believe globalization to be an ideal made by “free-marketeers” (Giddens 16) who want to cut back on government cost.
Technology has made the world a smaller place. Recent innovations in jets, satellites, and computers have made communication across the globe faster. People are now able to travel to any destination they want in less than a day, so why can’t businesses travel as well? Globalization intends to answer that question. New technology has increased worldwide trade and investment by allowing more companies to trade at a faster rate. Thomas Friedman considers globalization to be “farther, faster, cheaper, and deeper than ever before” (9). Multinational corporations that have entered globalization can now trade their business wherever labor is the cheapest.
Economic globalization has become the most important feature and a general trend of present world economic development. Globalization is a phenomenon and also a process of development of mankind and human society (Hamilton, 2008). It is the essential feature of the modern age. Globalization is the cross-border flows of capital and goods, including capital, labour, technology and natural resources (Bożyk, Misala & Puławski, 2002). Economic globalization is a historical process, and the germination of it could date back to the 16th century. After the industrial revolution, capitalist commodity economy, modern industry and transportation have been developing rapidly. The world market was fast expanded and the foreign trade was