Pros and Cons of Globalization

At its core globalization is the interrelationships, interconnection, and interdependence of all the countries of the world. It is the spread of capitalism across the globe bringing with it both opportunities and constraints. However, it is more than just free trade; the forces that allow businesses to operate beyond national borders allow activists, journalists, and scholars to work on a global scale. In the world today globalization is essentially a synonym for global business and is personified by three organizations: the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO). These organizations are at the center of a great debate over the virtues and evils of globalization. There are many convincing arguments both against and in favor of globalization. This essay from www.mytermpapers.com Those against globalization have one primary concern; they claim that globalization benefits corporations while harming people. It is feared that globalization reduces human rights, harms the environment, undermines sovereignty, and increases inequality. Globalization is a threat to human rights because countries with high labor standards must compete with nations that have no labor laws. According to

 

Despite its many flaws, I think that globalization is a positive force in the world. It cannot be denied that globalization in its present incarnation has enormous problems. Most of the arguments against globalization come down to one point: it benefits corporations and not people. It does not, however, have to be that way. It is possible for globalization to benefit both corporations and people. But there are many points in favor of globalization. It lowers prices. Food is cheaper, clothes are cheaper, cars are cheaper, phone service is cheaper. Globalization lowers prices and raises income. Most importantly, free trade stops wars. One world, one peace. We can fix the rest. g to Global Exchange, an international human rights organization, “the WTO courts have consistently ruled that environmental and human rights concerns are unacceptable motivations for trade policy if they interfere with the interests of commerce (The WTO Erodes…).” For globalization to be a positive force it must be acknowledged that trade is political as well as monetary. Unfortunately, current laws designed to protect human rights and values are often considered “barriers to free trade” and are attacked by the WTO.

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The Pros And Cons Of Globalization

Mon, 06/28/2010 - 12:40pm

Mike Collins, Author, Saving American Manufacturing

People around the globe are more connected to each other then ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent and international communication is commonplace. Globalization is an economic tidal wave that is sweeping over the world. It can’t be stopped, and there will be winners and losers. But before drawing any conclusions on how it affects the U.S. economy, consider some of the general pros and cons of globalization.

The disadvantages of globalization

1. “The general complaint about globalization is that it has made the rich richer while making the non-rich poorer. It is wonderful for managers and investors, but hell on workers and nature.”¹

2. Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages and poor living and working conditions), as well as a lack of concern for the environment, mismanagement of natural resources, and ecological damage. 

3.  Multinational corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power due to globalization.

4. Opponents say globalization makes it easier for rich companies to act with less accountability. They also claim that countries’ individual cultures are becoming overpowered by Americanization.

5. Anti-globalists also claim that globalization is not working for the majority of the world. During the most recent period of rapid growth in global trade and investment, 1960 to 1998, inequality worsened both internationally and within countries. The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources, while the poorest 80 percent consume just 14 percent.

6. Some experts think that globalization is also leading to the incursion of communicable diseases. Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners of the globe.

7. Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an increase in human trafficking.

8. Social welfare schemes or “safety nets” are under great pressure in developed countries because of deficits and other economic ramifications of globalization.

The positive side of globalization

Globalization has a positive side as well. Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some deep-seated problems like unemployment and poverty. The marginal are getting a chance to exhibit in the world market.

Here are some other arguments for globalization:

1. The proponents of global free trade say that it promotes global economic growth, creates jobs, makes companies more competitive, and lowers prices for consumers. It also provides poor countries, through infusions of foreign capital and technology, with the chance to develop economically and by spreading prosperity creates the conditions in which democracy and respect for human rights may flourish.

2. According to libertarians, globalization will help us to raise the global economy only when the involved power blocks have mutual trust and respect for each other’s opinion. Globalization and democracy should go hand-in-hand. It should be pure business with no colonialist designs.

3. Now there is a worldwide market for companies and consumers to access products from different countries.

4. There is a world power that is being created gradually, instead of compartmentalized power sectors. Politics are merging and decisions that are being made are actually beneficial for people all over the world.

5 There is more influx of information between two countries.

6. There is cultural intermingling. Each country is learning more about other cultures.

7.  Since we share financial interests, corporations and governments are trying to sort out ecological problems for each other.

8. Socially we have become more open and tolerant towards each other, and people who live in the other part of the world are not considered aliens.

9. Most people see speedy travel, mass communications and quick dissemination of information through the Internet as benefits of globalization.

But what about the American economy?

What is good for third world countries like Kenya or countries with tremendous growth like China may not be good for America. America has been outsourcing both manufacturing and white collar jobs. Since 1980, American manufacturing has lost some 6 million jobs and has shrunk from a high of 29 percent of the GDP in 1950 to 11 percent of the GDP today. This has happened because manufacturing work is outsourced to developing nations like China where wages and the cost of manufacturing goods are lower.

In the service industries high paying jobs like programmers, editors, scientists, accountants and medical technicians have lost their jobs due to outsourcing to cheaper locations like India. This also includes customer support, marketing, insurance and just about any job that can be done over the internet. If you lose a manufacturing or a professional service job, the alternative is to take a lower paying service job.

Outsourcing has created a culture of job insecurity. Prior to globalization, people had stable, permanent jobs. Now people live in constant dread of losing their jobs to foreign competition and outsourcing. This increased job competition has led to a reduction in wages and consequently lower standards of living.

Economists say that American consumers gain from a wider choice of products and lower prices associated with open trade. This gain, when combined with gains to workers employed in export-generating sectors, is supposed to more than offset losses to workers employed in import-competing sectors. But, the trade deficit keeps getting bigger with twice as many imports as exports and median wages have not been growing. In addition, the trade deficit is being kept artificially high by Asian countries by manipulating their currencies by 20 to 40 percent and the dollar value continues to fall. In the long run, the low priced imported goods will not offset the loss of many family wage jobs.

Proponents also see U.S. corporations building factories in other countries equally well-equipped as plants in their own country as a good thing. However, this also means transferring our technologies and much of the R&D along with the products. I would argue that giving our foreign competitors access to our technologies and research and development will cripple our manufacturing sector permanently. We are playing right into the hands of our biggest competitor (China), when we really should be doing everything in our power to not give them any advantage over us.

By outsourcing our plants and technologies we will lose the very factor that has made America great -- innovation. In his report ‘Securing America’s Manufacturing Base,’ Joel Popkin says, “Manufacturing’s innovation process is the key to past, present, and future prosperity and higher living standards. The intricate process starts with an idea for a new product or process, prompting investments in research and development. R & D successes lead to investments in capital equipment and workers, and to ‘spillovers’ that benefit manufacturing and other sectors. This process not only generates new products and processes, but also leads to well-paying jobs, increased productivity, and competitive pricing. Yet while this process produces wealth and higher living standards, most of it is hidden from view and poorly understood.”²

As manufacturing continues to decline, so does our ability to innovate. In the long term, this means fewer well-paid jobs, lower productivity, declining wages, declining living standards and low economic growth. Globalization is a big part of this decline and will affect all jobs and all sectors of the economy. From the point of view of multinational corporations and Wall Street investors, globalization is probably viewed as a wonderful phenomenon with many opportunities. But from the point of view of American manufacturers, manufacturing workers, the middle class, professional service workers and overall economic growth, I think the disadvantages far out weigh the advantages.

We can’t do much to stop the tidal wave of globalization but we can enforce the trade laws, force the competition to play by the same rules, and stop giving our competitors the tools to ultimately win the global war.

Even though globalization affects the world’s economies in a positive way, its negative side should not be forgotten. Discuss.

In the present age, globalization is playing an increasingly important role in our lives. But in the meantime whether it is a blessing or a curse has sparked a heated debate. Some people argue that globalization has a fundamentally beneficial influence on our lives, while many others contend that it has a detrimental effect as well.

A convincing argument can be made about globalization not only playing a pivotal role in the development of technology and economy, but also promoting the cultural exchange between different countries. To start with, it is the globalization that impelled many corporate to become international groups, thereby making a contribution to the local technology and employment. Specifically, when a multinational group establish a factory in a developing country, the new equipment, the new management skills and the job vacancies are all in the best interest of the local society. Moreover, people worldwide can get to know each other better through globalization. It is easy to see that more and more Hollywood blockbusters show cultures different from American, some recent examples are ‘Kungfu Panda’ and ‘The Mummy’.

Admittedly, the profit driven side of globalization has severely affected young people. Today, in the metropolises in different countries, it is very common to see teenagers wearing NIKE T-shirts and Adidas footwear, playing Hip-Hop music on Apple iPods and eating at KFC. The culture that took a thousand years to form just seems similar in these cities; it seems as though you can only distinguish them by their language. Meanwhile, in some developing countries, sweat workshops are always a concerning issue. For instance, reports show that some teenagers employed by NIKE’s contractors work in smelly factories over 14 hours a day, but are only paid fifty cents per hour.

To sum up, I would concede that globalization does come with some adverse effects. Despite that fact, benefits created by it far outweigh the disadvantages. Overall, I am convinced that we should further promote globalization and meanwhile the local government should take measures to combat culture assimilation and sweat workshops.

This essay is extremely long (338 words instead of the advised 250-265). It has a sound structure, your position is clearly expressed, the information is well-organized, and structure-wise the sentences are fine. The vocabulary is impressive and there were only a few grammatical errors (see comments underlined in blue). Overall, this seems to be a band 7.5 + essay.

PLUSES -- 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.

MINUSES -- 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.

Pros And Cons Of Globalization

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Globalization is a new term that has found a significant place in the lives of the people. By globalization, we mean shedding down the walls of distrust and the barriers of suspicion in between countries, to make a bridge where ideas and beliefs can cross the borders. Though globalization today primarily covers the economical side, the impact is not limited to the economy only. It actually affects every aspect of life, like cultural, social, psychological and of course, political. While globalization is seen as a sign of a hopeful future by some, there are others who believe that it can cause tremendous disaster for the world economy. Read on to find the pros and cons of globalization.

 

Pros Of Globalization

 

• With globalization, there is a global market for companies to trade their products and a wider range of options for people, to choose from among the products of different nations.  

• Developing countries benefit a lot from globalization, as there is a sound flow of money and thus, a decrease in the currency difference.

• To meet the increasing demands that follow globalization, there is an increase in the production sector. This gives loads of options to the manufacturers as well.

• Competition keeps prices relatively low, and as a result, inflation is less likely to occur.

• The focus is diverted and segregated among all the nations. No country remains the single power head; instead there are compartmentalized power sectors. The decisions at higher levels are meant for the people at large.  

• Communication among the countries is on the rise, which allows for better understanding and broader vision.

• As communication increases amongst two countries, there is interchange of cultures as well. We get to know more about the other's cultural preferences.

• As we feed to each other's financial needs, the ecological imbalance is also meted out. Governments of countries show concern about each other.

 

Cons Of Globalization

 

• Globalization is causing Europeans to lose their jobs as work is being outsourced to the Asian countries. The cost of labor in the Asian countries is low as compared to other countries.

• The high rate of profit for the companies, in Asia, has resulted in a pressure on the employed Europeans, who are always under the threat of the business being outsourced.

• Companies are as opening their counterparts in other countries. This results in transferring the quality of their product to other countries, thereby increasing the chances of depreciation in terms of quality.

• There are experts who believe that globalization is the cause for the invasion of communicable diseases and social degeneration in countries.

• The threat that the corporates would rule the world is on high, as there is a lot of money invested by them.

• It is often argued that poor countries are exploited by the richer countries where the work force is taken advantage of and low wages are implemented.

oPros and Cons of Globalization Globalization has made world a smaller place. Lets know more about the pros and cons of globalization and its general impact on the world. Ads by Google Infocredit World Due Diligence,KYC reports, World Information Resource www.infocreditworld.com Globalization refers to the absence of the walls of matchboxes that every country had, between themselves based on suspicion, mutual distrust and ambition. We were different countries, in fact divided into worlds, and therefore could never manage to deal with natural holocausts and deadly epidemics, which time and again challenged us. Globalization has strengthened the nexus and has helped us to know each other's need in a better way. It has helped to demolish those walls that separated us and curbed our natural identity of being fellow human beings. Globalization has primarily become a fiscal term but its impact is not limited to the economy of the countries only, the term globalization actually refers to every aspect of life-like cultural, social, psychological and of course, political. It is true that the impact of globalization is visible and affects largely the politics and the economy of the country but its effect on the mindset and the culture is noticeable gradually in the way people think and react. It's like the Iceberg theory wherein what we do and say are at the tip and what we think and believe is at the base. The base is not visible but manifestations at the top are conspicuous. It applies here as well where people do not change abruptly but may be after a decade the change starts showing and seems radical. World During the Pro-globalization Era Globalization is not a new phenomena, the base was laid long back when the Dutch East India Company and the British East India Company started trading with India. In history, there were trade relations between different countries like Arab and Egypt and now in modern times that has translated into Globalization or Free Trade. It's true that ultimately all the free trade resulted in the white man taking the burden proactively but then globalization leads to more employment and higher standard of living, especially among the developing countries. Theories suggest that globalization leads to efficient use of resources and benefits all who are involved. According to libertarians, globalization will help the world to deal with crises like unemployment and poverty. It will help us to raise the global economy only when the involved power blocks have mutual trust and respect for each other's opinion. Globalization and democracy should go hand in hand. It should be pure business with no colonialist designs. The way we have developed in the last 10 years, globalization seems to have given us good returns. Globalization has made the life of the third world citizen completely a different story. There are so many foreign companies that have made way to Orient and have made India a brand name all over the world. Pros and Cons of Globalization There are many advantages and disadvantages of globalization. Some of these good and bad points of this worldwide phenomenon are discussed below: Advantages of Globalization The pros of globalization are many and they are as follows: There is a worldwide market for the companies and for the customers there is a better access to products from different countries. There is a steady cash flow into the developing countries, which gradually decreases the dollar difference. Due to the presence of a worldwide market, there is an increase in the production sector and there are lots of options for investments for different companies. Gradually there a world power is being created instead of compartmentalization of power sectors. Politics is merging and decisions that are being taken which are actually beneficial to people all over the world. The influx of information between two countries increases, especially those nations who do not have anything in common between them. Cultural intermingling increases and every nation tries to know more about the other nations cultural preferences. In this process, we are actually coming across things that we like and in the course of time adopt it. Since we share financial interests, corporate and governments are trying to sort out ecological problems for each other. Socially we have become more open and tolerant towards each other and these who live in the other parts of the world appear more approachable than before. There is a lot of technological development that countries have undergone over the years. Thus, helping in sharing of information and technology. This helps most of the developing nations progress at the same speed as the developed nations. Globalization helps in increase of demand of products. This in turn increases rate of production. Manufacturers thus, find this profitable and helps in availability of more jobs. Globalization makes the economy of one country dependent on the economy of the other country. Any change in economy one country will affect the other. Thus, governments become more concerned about one another to curb the economical imbalance between them. Disadvantages of Globalization There are cons of globalization are as follows: Many people from developed nations are losing jobs and that is posing a problem for them since the companies are outsourcing work to developing countries since the cost of labor is low and profits the company considerably. There is immense pressure on the employed people of developed countries who are always under the threat of their jobs being outsourced. Corporates are building up units in other countries that equally well equipped, thus transferring the quality to other countries. There are some experts who think that globalization along with the positive aspects is also leading to the incursion of negatives like communicable diseases and social degeneration. There is also a threat of corporates ruling the world because there is a lot of power and money invested by them due to globalization. For nations that are at the receiver's end are also giving up the reins in the ends of a foreign company which might again lead to a sophisticated form of colonization. Globalization may lead to loss of cultural identity as Western ideas are always imposed upon the Eastern thoughts. Impact of Globalization Globalization has made way for free trade and business. It has also helped improve communication around the globe. It has potential to make this world a better place to live in. It is changing the political scenario thus deep-seated problems like unemployment; poverty and shift in power are coming to the picture. The marginal are getting a chance to exhibit themselves in the world market. The term "brand" is catching up in the Asian countries. It is not only modernizing but also westernized the native cultures. The power play is leading to the linguicide or linguistic, cultural and traditional genocide. That is probably where we need to keep a check and not let diffusion go wild. There has been significant de-localization that needs people to be more tolerant since face-to-face interaction is no more the order of the day. It so happens that an American is trying to sort out his billing issue of his mobile phone with an Indian call center employee who is not the direct employee of the service provider. Now that sounds complicated and has to be dealt carefully. Globalization cannot be stopped. But, one can always keep a check on its spread and outcomes. This was all about globalization pros and cons. Globalization makes the world better. The question is how prepared are we to face all the pros and cons of this global change. By Poushali Ganguly Read more at Buzzle: http://www.buzzle.com/articles/pros-and-cons-of-globalization.html

ave you ever discussed pros and cons of globalization? What do you think about this subject? Is globalization a positive process, or it also has certain negative features? We were trying to find all the good sides, as well as the bad sides of globalization. Here is what we have found, but we are curious to hear your opinion, too!