Positive and Negative Impacts of Globalization

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Globalization Globalization Arguments Favoring Globalization This essay discusses the positive and negative impacts of globalization. Because people are more connected globally than ever before, the process of globalization continues, creating sweeping economic changes. Inevitably, some people and some countries will benefit from globalization, and others will suffer from its effects. This essay discusses those effects. Globalization describes the increasing economic integration that occurs between countries involving international trade, finance, people and ideas as they interact in the global marketplace. Many of the benefits that result from globalization are economic and financial. No country has all the economic inputs, such as natural resources or geographical location, that are required to produce everything it needs domestically. Therefore, countries benefit from the economic efficiency of international specialization. Globalization also allows investors in developed countries to invest in developing nations thereby facilitating economic expansion. According to Dallas Federal Reserve Bank CEO Richard Fisher, globalization is responsible for an increase in the gross world product from15 percent in 1986 to nearly 27 percent in 2006. Over the same period the stock of foreign direct investment assets has grown as a percentage of gross world product to nearly quadruple its total from two decades ago (Fisher, 2006). Some business leaders argue that globalization
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