Impact Of Globalization On The Global Economy

Sweatshops are not replacing high paid jobs but rather provide work over farming, unemployment or the more dangerous alternatives of prostitution or crime, which the unemployed may be forced into. Sweatshops in developing countries are key to the growth of the local economy by creating more work for individuals. The increased workforce keeps a local economy alive by increasing local’s purchasing power, allowing other local businesses to flourish. Rural areas are in danger of depopulation as workers leave for higher paid factory jobs, and urban sprawl can lead to unsuitable living condition i.e. slums. The product produced in sweatshops boosts exports in host countries to where the consumer demand is. Exports bring money into a country, which increase the exporting nation’s Gross Domestic product (GDP). Arnold (2005) states; “Exploitation of a national resource-inexpensive labour- allows developing countries to expand export activities and to improve their economics.”

The economy is based of both producers and consumers, but the customers are the ones that ensure the success of each company. More than half of the world’s population lives in a portion of Southeast Asia (Schuman). The population of Southern Asia is affecting the economy of other countries around the world because so many consumers are located in one condensed area. The Countries of China, India, and Japan consume many American goods that help both countries’ economy grow from recovery of the stock market crash. However, the Asian countries seem to be benefiting more from this globalization of the economy than America.

Globalisation is expressed in transcontinental flows and networks of activity, interaction and power between countries, irrespective of geographic distance. It establishes and maintains economic, political and socio-cultural relations. This interaction helps economies through growth in international trade, investment and capital flows. Some factors that have acted as the driving force of globalisation include technological innovation as it had made transport and communication around the world easier, capitalism and trade have also played an important role in encouraging globalisation. Trade

Big corporate companies’ exploitation of workers in developing countries are driven from the basis of treating the world as a tool to gain profit; in other words, dehumanizing workers. Unemployment, dehumanization, and poor working conditions lead to detrimental health effects that are further exacerbated by the face that these individuals who face the dire consequences are not financially stable or competent to receive medical treatment or medicine. In addition, it can also be deduced that due to the unequal distribution of wealth and the health impacts that arise from the various aspects that stem from economic globalization, it results in the inequality in health and living. Thus, globalization seems to neglect the poor nations and populations as they continue to plummet down the social ladder. Though globalization has opened up opportunities for developing countries and has improved our lifes through advancements made, it is a process in which bears both negative and positive consequences, like any process or situation. However, it is important to acknowledge the injustice and inequality that some of the world’s population still faces. As such, corporations, being global citizens in an interconnected world, realize their responsibilities and collectively create a national agenda to implement policies in which would accommodate and provide nations and populations the necessary resources and accommodations to integrate themselves successfully into the globalization process

The issue of globalization for the people of the United States has been a long and terrifying problem for them. Although other countries many have had issues with this problem it appears the U.S. is still being affected by it to this day. Although not everyone in the United States may have been affected by the issue. Majority of the people (mid class and lower class) have somehow been affected by it or knows someone that has been affect because of it. This issue of globalization has been talked about by politicians so it appears it had to been a major impact to the country. Thus, this issue of globalization has been an issue for the United States for a long-time way before the twentieth centuries. Therefore, this paper will discuss what is globalization and how it has impacted Americans views and how some people’s views changed because of it and finally, what is the impact of communications technology. All these key topics will help with getting a better understanding of what these issue is and how it has affected society today.

While there have been many winners from economic globalisation, there have also been and will continue to be many losers. There have been many losers including most third world countries, the environment and ironically even most western countries. The primary loser from globalisation has been the developing countries, who have supplied the labour and raw material necessary to fuel globalisation. In many third world countries, globalisation has had the negative effect of creating sweatshops, where workers are paid low wages to do hard manual labour in often poor conditions. These sweatshops are run by

Globalisation is a channel by which the world is rapidly connected due to massive trade and culture change .It has increased the development of goods and services. Many countries around the world now have subsidiaries rather than national firms. It has taken hundred of years to establish itself but has raised in the last half of the century. The international trade has increased due to the presence of globalisation. The companies started to operate in more than one country because of it. The global economy started heavily depending on globalisation. The movement of capital, services and materials

Although poverty is a driving force, aggressively pushing the most vulnerable members of society into the trade, this travesty is not limited to developing countries. In fact, thousands of women and children are exploited in

A problem that often is talked about concerning developing countries is the issue of western countries using poorer countries for production and cheap labour. It is often argued that this is something unfavourable, in two ways. First of all, it is argued, often by the progressive crowd, that it has a negative effect for the people in developing countries working in the factories, and their economy. It is said that the pay is too low and conditions bad, and that people are forced to take the jobs. Second of all, it is argued, often by the more conservative crowd, that this has a negative effect on the countries using the labour as well. People lose their jobs because they can’t compete with the low wages and living standards in developing countries,

“Hours are long. Wages are pitiful. But sweatshops are the symptom, not the cause of shocking global poverty. Workers go there voluntarily, which means - as hard as it is to believe - that whatever their alternatives are, they are worse. They stay there too; turnover rates of multinational-owned factories are low, because conditions and pay, while bad, are better than those in factories run by local firms,” Tim Harford, English economist and journalist, said. International buyers search for cheap labor and find it in countries like Bangladesh; people desperately need jobs in these countries, but the factory employees undertake appalling conditions and little pay.

Globalisation is there to increase the wealth in less developing countries, for example India and Rwanda – however, it can be seen in a negative light as globalisation can raise potential for exploitation of workers in less developed countries as businesses in well developed countries have production costs cut by producing their “goods” oversea. (Economics Online, 2015) In order to maximise profits, many business’s exploit consumers, this is where government bodies exist to protect the consumers from unfair trade practices, abuse of monopoly power, unsafe and harmful products and a numerous amount

“Globalization refers to the increasing movement of goods, services, and capital across national borders. Globalization is a process, that is, an ongoing series of interrelated events.” Lawrence & Weber (2014). Some say globalization is exacerbating the income inequality. Some of the major companies have been accused of taking advantage of the “cheap” labor and allowing deplorable conditions to continue in their foreign based companies. Perhaps, but as a business one has to be ingenious in how it conducts itself to be competitive in the market. That’s not to say, one turns a blind eye to the inhuman conditions of the workers. There needs to be a realization that these conditions already existed before a multinational company established itself in the third world country. There are non-profit groups who are bringing the deplorable working conditions to light and hence seeing improvement being made. The bible says, “And be ye kind one to another, tenderhearted, forgiving one another, even as God for Christ's sake hath forgiven you. Ephesians 4:32 (ESV). We need to commit to make changes when we have the ability to undertake the task. “Globalization is supposed to be about free trade where all barriers are eliminated but there are still many barriers. For instance161 countries have value added taxes (VATs) on imports which are as high as 21.6% in Europe. The U.S. does not have VAT.” Collins, M.

Multinationals are being accused of exploiting the resources and workforce of third world countries. Agricultural businesses take the best lands for harvesting the export crops which lessens the amount of good land that the locals can use for their own food needs. Hazardous chemical industries and drug industries misuse the slack safety laws and cause huge disasters. Developed countries are depleting the natural resources of developing countries. Developing countries have natural resources and developed countries have the technology. They make use of the natural resources of the developing countries while at the same time preserving their own natural resources for future (Ferrell, Fraedrich, & Ferrell, 2011). Manufacturing and service industries are bringing more and more poverty in third world countries. They hire more and more labors more than their requirement. They pay them very less amount.

Globalization can be seen as a major threat for manufacturing jobs in the developed world, however, can also be a benefit for developing world citizens who receive thousands of jobs a year although they don’t receive a high salary. Maurice Allais, a French economist states that this unemployment, of course, has only been able to develop because of the existence of low salaries and insufficient flexibility in the labor market (April 10th, 1999). This indicates that globalization has jeopardized Western countries jobs because companies are moving their establishments to developing countries where they don’t need to pay employees as much and where land is cheaper so overall businesses benefit from this. Also, employees in the developed world are at risk of becoming redundant as they are susceptible to face pay cuts in jobs. Employees are less skilled in the developing world as they don’t receive the benefit of an education like developed countries do. So a company may want to build factories in these countries because environmental laws aren’t as strict. Establishments in these areas provides promising jobs for the local people and allows them to learn new skills, however they are set on minimum wage which in developed world countries, this would not be enough to live on, wherein third world countries this is still a low amount so this is not enough to bring them out of poverty meaning that the only one who benefits from this is the company. Although there have been several arguments against exploitation and oppression, the majority of developing countries do not have existing laws which take minimum wage

In today’s world, with a few notable exceptions, nearly everyone in every region of the world has access to the same products, information and services. A long-distance relationship is no longer so distant, since each party involved in the relationship can communicate through Skype, Facebook or through any of the vast amount of social media available. A person in Easter Island, one of the most remote inhabited islands in the world, can go to the other side of the world and travel to Canada. An economic crisis in Argentina could affect the economic landscape in Brazil. A person in Chile or Peru can buy an Abercrombie and Fitch t-shirt because this transnational corporation decided to expand its market to developing countries, or as you might prefer, to emerging economies in South America. Although many of these examples might be trivial, these are the consequences of globalization.