Globalization Pros And Cons

Proponents and opponents debate about globalization, the effect of globalization can be felt worldwide. The pros and cons will be discussed in job creation, national sovereignty and culture diversity, inequality and poverty, and finally about the natural environment. The relocation of production plants to lower cost locations has led to a decrease of job security and downward the pressure on wages for those that remain (Preble, 2010). Opponents said that this causes a raised inequality with the rich are getting richer and the poor are getting poorer. Trade and investment liberalization leads to job gains in some export industries that benefit from more open foreign markets, it also can raise havoc in import-sensitive industries (Kletzer 2001a,

The expand of culture diversity is an effect of globalization, is said by proponents, however, opponents say that cultural diversity will be replaced with cultural homogenization (Preble, 2010). The inequality between countries had a reduction, this cause was effected by the factors like rising trade flows, an expanding global middle class, and relatively low and stable levels of unemployment (Preble, 2010). As Preble claims that a gender gap exist worldwide, although the overall employment increase. Employment is very high for young people but the opportunities for decent work is very low (Preble, 2010).

Proponents of globalization say that tougher environment rules is correlated to the progress of the economic (Hill 2008, as cited in Preble, 2010). The main concern of the opponents are exploitation and destruction of ecosystems by corporate firms (Batterson and Weidenbaum 2001, as cited in Preble 2010).

2. Globalization and international trade, capital and production (Augustin Kwasi Fosu, 2010) (Gunter and Van der Hoeven,

During this period the world trade has increased more than 300%, the world nominal gross increased by 250% and exports of goods and services increased by 340% (Gunter and van der Hoeven, 2004). These increases are mainly through the liberalization of world trade. The higher the income per country, the higher the increase of international trade (Gunter and van der Hoeven, 2004). The high income countries are mostly developing countries, because the developing countries had higher levels of protection than industrialized countries, they had a higher increase of international trade. Foreign direct investments as well as portfolio investments have decreased in low- and middle-income countries, high-income countries had a significant decrease and china and India had an increase (Gunter and van der Hoeven, 2004). The production of goods has been internationalized, such as assembling and producing products in different countries (Gunter and van der Hoeven, 2004). Opponents of globalization believe that the increase of economic drives multinationals in a “race to the bottom” to manufacture in countries with the lowest labor costs and the weakest labour standards (Gunter and Van der Hoeven, 2004). Proponents of globalization believe that if nations produce their products they are best in, will result in a more efficiency and productivity