The Roles Of Globalization And The Role Of Globalization In The World

The Role of Globalization in the world

Globalization has contributed so much to the world. The current technology and advanced communication has led the world to be a global village: one nation. There is increased interaction and integration of people, companies, and nations. Labour and product exchanges have become more prevalent with modern computers and software programs. Countries can outsource factors of production from other countries and produce cheaper products lowering costs. Globalization has often been viewed with negative connotations. For many, it represents a threat to their jobs, livelihood and way of life. Though many think of it in a negative light, globalization has been a catalyst for positive change as well. This paper

In their attempt to become more competitive they turn to developing countries as source of cheap labour. The small business diminish as they are unable to compete with larger companies proving critics of globalization right that multinational companies benefit at the expense of the local businesses (Lindert & Williamson, 262).

Migration of workers.

Globalization has caused workers from poorer countries to migrate to more developed countries in search of work. They move to get a head. They come from countries whose average real wage and average GDP per worker is only half of those in the receiving countries (Lindert & Williamson, 244). The migrant workers leave their homes and countries and go to live temporarily in another country. This disrupts the family life and social life. Moreover, most of them send money home hence denying benefits to the countries that they work. There is also the issue of conflict between the locals and the migrants. Migration has many benefits for migrants and host countries alike but those who move change the places they settle creating tension, perceived as a problem especially by people who feel their way of life changing (Lechner,9). Migrants can cause loss of jobs in the host

Economic inequality has risen in developing countries and fallen in the developed and industrialized countries. The rise in the world income inequality has been driven by the widening gap between nations (Lindert & Williamsom, 227).

The most documented and highly debated experience linking globalization with inequality is the OECD ( Organization of Economic Cooperation and Development) wage widening especially within the United States and United Kingdom (Lindert & Williamsom, 256). Recent research conducted shows a share rise in inequality that should be attributed to increase in international integration. As companies go global the rich get richer while the poor get poorer (Lechner, 9).