Pros and Cons of Globalization

Susan McCormick PLSC323

The Pros and Cons of Globalization

Starting out, I would first like to define globalization. It is” The worldwide movement

toward economic, financial ,trade, and communications integration. Globalization implies

the opening of local and nationalistic perspectives to a broader outlook of an

interconnected and interdependent world with free transfer of capital, goods, and services

across national frontiers. However, it does not include unhindered movement of labor and,

as suggested by some economists, may hurt smaller or fragile economies if applied

indiscriminately.”(Parikh,Jan.2010) Globalization has become one of the most debated

subjects of the 2000's. It has been said that it is one of the best things to happen to the

world by its proponents, and its opponents are labelled at is neo-imperialism. According

to CNN”Globalization and localization are two sides of the same coin.More than ever,

local communities are the secret of economic success. In the coming decades, the number and

strength of America's brain hubs will determine whether, as a country we will prosper or

decline. Physical factories will keep losing importance, but cities with a large percentage of

interconnected, highly educated workers will become the new factories where ideas and

knowledge are forged. Supporting growth in America's innovation hubs while arresting the

decline elsewhere is the real challenge that we face as a nation.”(CNN today, October 9,2012)

There are numerous pros and cons of globalization of which I will attempt to talk about both

in the upcoming pages. I am beginning with the pros: Productivity grows quicker when

countries produce goods and services in which they have a comparitive advantage.

Some argue that globalization gives a rise to new industries and more jobs in developing

countries. It also gives organizations access to cheap resources and labour in developing

areas in the world. It leads to greater employment opportunities for the people and also

consumers get quality goods at competitive rates. Transport and distribution systems are also

more efficient than ever before, making it much easier faster, and cheaper for businesses to

deliver their products to consumers. Electronic transfers also make making and receiving

international payments more secure and faster. Companies also have more flexibility to

operate across borders therefore they can profit through domestic as well as international

and also they can have access to much cheaper capitial from other countries if the rate of

interest is low. Globalization gives you a larger market therefore you can sell more goods

and make more money. Global competition and cheap imports keep prices low and steady,

so inflation is less likely to interrupt economic growth. The products are improved due to

global competition. Cooking styles, languages, customs have all spread due to globalization.

The spread of education worlwide is also affected meaning you can go anywhere in the world

and get the education you seek. Foreign trade is impacted on an economy, the WTO controls

the way things are handled throughout the world. Comparitive advantage is a factor.

Politics are merging and decisions that are being made are actually beneficial for people

throughout the world. We have become more social and open and tolerant towards other

countries, and we don't treat people from other countries as aliens. There are numerous other

pros to globalization, but I will end there.

The cons are just as much as the pros. Some of the cons are that smaller domestic firms

lack the resources to compete with the big international companies and may be forced out

of business. All the traveling of the people and the goods from country to country could spread

infectious diseases that are extremely deadly.

One of the biggest complaints about globalization is that it makes the rich richer and the non-

rich more poor. Opponents say that globalization makes it easier for those rich companies to

act with less accountability. Claims have also been made that countries' individual cultures

are being taken over by Americanization. Exploitation of labor is another problem. Prisoners

and child workers are used to work in inhumane conditions, and their safety is being put in

jeopardy in order to produce cheap goods. There is also an increase in human trafficking.

The social welfare schemes are under enormous pressure in developed countries because of

deficits and other economic ramifications of globalization. Multinational companies and

corporations which were held back from commercial activities are increasingly influenced

the political decisions. Most people think that there is a threat of corporations to rule the

world because they are gaining power due to globalization. As far as jobs go, millions of

Americans have lost their jobs because of production or imports shifts abroad. Most find new

jobs with less pay. Other millions of people are afraid to lose their jobs at the companies

operating under competitive pressure. They also face pay cuts from employers which

most of the time threaten to export jobs. The white collar jobs are increasingly vulnerable to

operations that are moving offshore. Some of the poorest countries in the world,such as Africa

may get even poorer. They do not have the education or the new technology that we do.

It can cause unemployment in industrialized countries because companies move their

factories to places where they can get cheaper workers. Globalization also can lead to

environmental problems. Say a company wants to build a factory over in a poor country

in the Third World. That country because of the new factory may have to cut down more trees

to sell wood, and also take up the land which they use for resources such as food and supplies.

Being of disadvantage,the under developed countries most of the time have to do what the

developed companies tell them what to do. As far as poorer countries go their chance at fair trade

is hindered, forcing the developed countries to produce export foods wanted by wealthier companies

instead of producing food for locals to feed their own population. The bigger companies develop

orchards and plantations and once again reduce the land for the production of local food

supplies.

When it comes to whether or not I am pro or con globalization I would say I am on the fence. I

do not agree with the work conditions that the people in the factories are subject to. Inhumane

treatment is unfair and jusat plain cruel. I was watching the news a couple of weeks ago and

watched people jumping out of the Apple building windows commiting suicide due to the

horrible work conditions. There are also what they call “suicide nets” placed outside of

factories due to the window jumpers from poor condtions. The spread of life threatening

diseases also concerns me from the back and forth of import and exports. The fact that countries

that are bigger and more powerful can overrule the less fortunate and smaller developing

countries seems a bit unfair. The taking of Third World companies land to benefit or make

profits and deprive them of their resources by also building factories on their land also

does not sit well with me. The unemployment rates in industrialized countries is caused

by globalization because firms move their factories over to places where they can get the

cheapest laborers. With globalization we must also keep in mind that we want to make

sure that both sides are profiting from the exchange of goods. I also think that we should as

a more technoligical and educated country give back to the third world better education and

and resources to more technology so that they can gain more profit from globalization. I am also

not happy with the way the economy is playing out. On the plus side, I am pro as well. I love the

fact that I can open up my computer,click start and get to just about any product in the world and

sometimes even cheaper than I can get from the United States. For instance,I do not have health

insurance. I have certain conditions that I have to be on medication for otherwise my health will

will fail. In the US at any pharmacy my medication costs me over 400 dollars! I then was turned

on to a Canadian pharmacy that I could get three months worth of my medication for a little under

three hundred dollars! Without globalization this would never happen. I also love exotic food

and fruits that are imported into the US from other countries. I like the fact that we are friendly

with other countries and are able to trade without any political problems. I can go to another

country and get just as good of an education or even better over there. Export jobs produce more

income than other jobs. Globalization gives us a wider market which means you can sell more

goods and make more money. The more globalization the cheaper the products become, and

the faster they get to us.

Bibliography:

Business Week, “The pros and cons of globalization”, April 2000

University of Western Sydney “The Impact of globalization”

Manufacturing.net, “Saving American Manufacturing”, by Mike Collins,6/28/2010

Letslearnfinance.com,”Ad vantages and Disadvantages of globalization”

Taking Sides,”Clashing views on Global Issues”,fourth edition,Hart and Lombardi,2007