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The cons of globalization
The cons of globalization
The cons of globalization
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1. Differences in Political Economy, Ethics, and Culture have often been major impediments to the growth of international trade among nations. Which of the three do you think had been the most important in the past, and which will be the most important in the future to the growth of international trade? Why? Be complete. The difference in the political economy has often been a major impediment to the growth of international trade among nations. Inflation rates, consumer spending, wars, tariffs all affect international trade. “Trade also brings dislocation to those firms and industries that cannot cut it. Firms that face difficult adjustment because of more efficient foreign producers often lobby against trade. So do their workers. They often …show more content…
There are many arguments both for and against globalization. Which do you think are the most important arguments both for and against globalization? Do you think overall that globalization has had and will continue to have positive effects on the growth of international trade and finance or do you think there are and will continue to be more negative effects?
A. There are many arguments for and against globalization, some pros and cons include:
• Pros of globalization: o Free trade reduces barriers o Promotes global economic growth: creates jobs, and the market becomes more competitive for companies, which lowers prices for consumers. o Information is being shared: technology and becoming culturally aware, companies outsource to each other.
• Cons of globalization: o Makes the rich richer and the poor poorer o Large companies can exploit tax havens in other countries o Outsourcing of jobs/exploitation of labor: A major problem for developed countries is that jobs are being lost to lower cost countries. Companies outsource to other countries because it’s cheaper, but they usually ignore safety standards to produce
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How will these changes affect the major players in the globalization process embedded in your country’s future? Changes in inflation, gross domestic product, and the labor market are all major players in the globalization process embedded in the future United States. If inflation increases the cost of goods in the United States will increase, interest rates will increase in order to maintain a profit margin. A decline in a nation GDP indicates a recession, which in turn leads to unemployment, which affects the labor market.
B. Based on your discussion above, what do you expect your country’s economic position to be in the future relative to the past decade? Be certain to detail your rationale. I expect the United States to be a good economic position in the future relative to the past decade. The United States went through the Great Rescission of 2010 and the economy is now thriving, the stock market is up, the unemployment rate is down, and it has one of the highest GDPs in the world. “Its low rate of exports, its increasing energy self-reliance and its experiences over the last decade will cause it to be increasingly cautious about economic and military involvement in the world. It has learned what happens to heavy exporters when customers cannot or will not buy their products” (The Stratfor,
...hnology and advancements in construction and others that will help the American economy. Americans are always trying to push to achieve the better and easier way of life. In the future I believe that there is going to be an economic struggle that will have a major effect on the economy. I believe this is going to happen because of the way that gas price are rising. If there are not major adjustments with the oil companies and the cost of fuel, our country is going to end up in a bind. I thing that the way the economy is going to be able to get back on its feet, is going to be from some new advancement in technology on how cars can run on minimal fuel. I believe that we are going to have political leaders that are going to rise the occasion of the fallen economy and are willing to make the changes necessary to bring our country out of this possible economical crisis.
The TPP demonstrates how nations such as the United States and Japan, who are developed nations, can rule over weaker and non-developed nations. A pro of economic globalization is that it provides poorer countries with assets that are needed to flourish and develop quicker. Also global economy provides free trade creating jobs to help economies get back on their feet and opens up more jobs for their people. Countries also learn more about other countries through trading (Collins, 2015). With knowing more about other countries, it will become easier to help each other in times of need. With every upside there is a downside to economic globalization.
Generally, America 's future would be thought to have no effect on our economic situation, but there are in fact some effects. Since the market crash in 2008, the U.S economy has slowly recovered. Today, the United States of America is still the world 's largest overall economy, representing 22.4% of global GDP and 16.6% of global GDP (PPP). The United States ' GDP was estimated to be $17.555 trillion as of 2014. The United States also has a labor force of 156.397 million. The U.S has also now become a primary producer and distributor of oil, which provides our nation with jobs and billions of dollars, but will this new position of strength will be nowhere to reverse the 18 trillion dollar debt we are facing? It would be safe to say that America 's future plays an important role in American economics and shouldn 't be taken for granted. To me, the economy is a glass half empty, but it is looking to be filled and the United States is taking the correct steps to do
We say that we are heading toward a more global economy because of the fact that competition in today’s markets is global. This means that corporations in the United States can compete in foreign markets and vice versa, therefore U.S. corporations and foreign corporations become interdependent and thrive off each other. This can have a good impact on the United States because it allows U.S. corporations to seek materials and labor outside of the U.S. in countries such as China, India, and Mexico, where workers are paid a lot less money than U.S. workers, thus allowing them to sell their products for significantly cheaper than if they were produced in the U.S.; however, the tradeoff is that many American workers in the industrial sector lose jobs due to this shift of labor to overseas. In the long run this will be beneficial for the U.S. and although some percentage of workers are losing work, new jobs in the services sector, in fields such as computer technology, telecommunications, and language skills are opening up and experiencing growth because of this change.
(Bilton et al 1996:5) The process of globalization has certainly had many changing effects to the world we live in; it has also changed the way many factors operate. Globalization is said "to have transformed the structure and scale of human relationships that social, cultural, political, and economic processes now operate at a global scale with a consequent reduction in the significance of other geographical scales. "(The Dictionary of human geography 2004:315) Globalization has had both positive and negative effects on a local, national, international and global level. Globalization often brings benefits at one level which cause negative effects at another, these results and the scale at which they manifest are often uncertain and unpredictable.
Interdependence: The possibility that unhindered commerce trade prompts interconnections that make clash too much over the top.
Firstly, what should be noted here is that international trade has been providing different benefits for firms as they may expand in different new markets and raise productivity by adopting different approaches. Given that nowadays marketplace is more dynamic and characterized by an interdependent economy, the volume of international trade has grown substantially in recent years, reducing the barriers to international trade. However, after experiencing the economic crisis that took its toll in 2008 many countries adopted a different approach in terms of trade barriers by introducing higher tariffs in order to protect domestic firms from foreign competition (Hill). Secondly, in order to better understand the implications of the political arguments for trade it is essential to highlight the main instruments of trade policy (See appendix 1).
First of all, one of the ways a government can help its nation is by imposing tariffs. The basic definition of a tariff is a tax, which is placed on an imported or exported product, by the government. The imported good can be charged per unit, for example two dollars per bag of rice, or by percentage, for instance 15 percent charge on the price of a tractor (Caballero). There are many ways these taxes can be helpful. Firstly, they can protect domestic producers from international competition. A government may use a protective tariff to artificially increase the price of an imported good. For example, if there’s a 50 percent tax on a machine which is imported and was originally sold for 100 dollars, it will now cost 150 dollars. Local companies can then sell the same machine for 149 dollars (Martin Frost). By raising the tariff on an imported good, it makes domestic goods seem more appealing to consumers because of their low prices, by creating a better national economy. Also, a revenue tariff can be imposed on a good which is not produced in the country. It is basically an amount created to make money for the government. For example, if a country does not produce any rice, it can place a revenue tariff on it and have a constant stream of earnings. There is also another type of tariff called ‘export tariff’. Though it isn’t used ...
First of all globalization has led to exploitation of labor. We can’t ignore the fact that ethical aspects of international business deserve special attention. Corruption and engaging in illegal practice to make greater profit is a source of continuing controversy. Sometimes companies go international and move their production to foreign countries so they could employ workers for long hours, at low wages and in poor working conditions (sweat shops). They are also using child labor, the employment of children to a full time work that can be otherwise done by adults all that so they could get out of their responsibility towards their workers by avoiding paying them national insurance …When these multinational firms go abroad they forget all about principles and about human beings and their rights, according to Kent, J., Kinetz, E. & Whehrfritz, G. (2008/March24). Newsweek. Bottom of the barrel. “The dark side of globalization: a vast work force trapped in conditions that verge on slavery”, David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62) also agrees with them when he explained his concerns about Chinese and Indians t...
Now, before I bash globalization it is some positive I would like to discuss. Globalization is great for the American economy; we can supply the world with our goods and services, which in turn can possible, relieve the deficit we’re in. “Homegrown industries see trade barriers fall and have access to a much wider international market. The growth this generates allows companies to develop new technologies and produce new products and services.” (Buzzle) Also, globalization leads to better relations between countries when they create trade agreements. Globalization does not drain every under-developed company but brings a new era of economic change and the hope of being a world super power to certain nations. “Economic globalization gives governments of developing nation’s access to foreign lending. These funds are used on infrastructure including roads, health car...
Finally, everything in the world has a positive side and a negative side and globalization is one of them. It is up to us the people of the world to maximize the positive aspect of globalization and minimize its negative aspect.
Globalization is a term that is difficult to define, as it covers many broad topics in the global arena. However, it can typically be attributed to the advancement of economic, social, and cultural interactions among the companies, citizens, organizations, and governments of nations; globalization also focuses on the interactions and integration of countries (The Levin Institute 2012). Many in the Western world promote globalization as a positive concept that allows growth and participation in a global community. Conversely, the negative aspects rarely receive the same level of attention. Globalization appears to be advantageous for the privileged few, but the benefits are unevenly distributed. For example, the three richest people in the world possess assets that exceed the Gross National Product of all of the least developed countries and their 600 million citizens combined (Shawki and D’Amato 2000). Although globalization can provide positive results to some, it can also be a high price to pay for others. Furthermore, for all of those who profit or advance from the actions related to globalization, there are countless others who endure severe adverse effects.
I have mixed opinions about globalization as a whole. I think for the economies of most countries it can be beneficial as it will help develop non-developed countries. Globalization has the potential to make the world a better place to live and solve some very long standing problems like unemployment and poverty, which will have a positive impact in the future. Other than having one world government, which I think would have a negative impact in the future, I think globalization will have a positive impact in the future, if it will increase wealth, decrease poverty and allows cultures to blend without each country losing their own cultures.
Many negative and positive thoughts have been given to the process of globalization. The proponents of globalization rather see the benefits of globalization, while the opponents have based their opinions on the disadvantages of globalization.
Economic globalization has changed the perspective on life today. More low class and middle class citizens are able to have access to food and shelter, unlike the past where high class citizens almost everything, while the low class citizens are living in harsh conditions. As many people have a good life, they are able to have a chance to develop advance our technology today. For example, transnational corporation like Facebook and Skype creates real-time conversations online, which is amazing compared to the past where it would take days or even weeks to communicate with the other person when they are somewhere else. Economic stability has been a problem in our economy since the Great Depression, but as we experience them we are able to learn from it and not make the same ...