Pros and Cons of Globalization and Localization

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Growing up in the United States, we have been lucky enough to have been blessed with a stable economy. There has always been the extreme feeling of complacency and stability that comes with being a very large, internationally respected country. Strangely enough, America does not only reap the benefits of globalization, but it also basks in the glory of localization. We have, as a country, experienced much success both internationally and domestically. For example, without our international businesses booming the way they are, our country would suffer from a great economical loss. "One third of the growth of our economy comes from exports." (The New York Times, 9/15/98) On the other hand, localization brings the citizens a great sense of nationalism. It feels good to see something with a made in America tag on it, and it also feels great to know that we are not totally dependent on other countries.

On more of an international level, "there is no question that freer capital flows have brought tremendous benefits to the global economy, as well as perils. Some places, like Hong Kong, have opened themselves to capital flows without restriction and are examples of the prosperity that free movements of capital can reap." (The New York Times, 9/20/98) On the other hand, the Malaysian economy, so far, has witnessed some short-term success with a localized view on their economy. Malaysia bans "most investments from being taken out of the country within the first year." (The New York Times, 9/20/98) Many countries are planning to try to follow in their footsteps.

There are so many pros and cons, or costs and benefits, of both globalization and localization. For the United States, being a largely international economic country, "trading...

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...with those changes are the adaptations that each country and each citizen of each country must go through. Whether or not the government chooses to act globally or domestically, there needs to be a conscience effort to make the best of what is offered.

From each of these economic views, there are fundamental gains and fundamental losses. Neither is a more correct way. It is just what works for a country on a whole. There are all different levels of economic complexity that goes along with these two schools of thought. One has to do with the citizens, another with the government, and another with the world. The best thing for a country to do is to give up as little as it can while its political systems and economy conform to what it wants. To do so, one must weigh the costs and benefits of each, choosing what will be the best in the present and in the future.

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