Globalization: good or bad Homework Help

Globalization: good or bad

Globalization is a term usually used to refer to the spread or unification of the world’s international trade bringing about economic order. This brings about the connectedness of the world’s economies with the international economies as a result of trade, production, technology, migration, communication, direct foreign investments, imports and exports (Mishkin 12). There are usually barriers to international trade which when reduced enhance globalization. Such barriers include, export fees, import quotas and tariffs. This reduction of the barriers leads to increase in material wealth, services and goods due to the creation of international relations and competition leading to the division of labor.
Globalization can also be used to refer to the merging of regional economies and societies with different cultures through the process of communication, interaction through trade and also through transportation brought about by the trade. There are those who believe that globalization has brought about the decrease in the integration of the various cultures within a region resulting to the possibility of regional or international conflict. Nonetheless, the factors that drive globalization can lead to prosperity or conflict depending on how different societies approach them and these factors are technological, political, economic, biological and cultural. This paper intends to discuss the pros and cons of globalization and finalizes by supporting that globalization is good as it has brought about more positive benefits than negatives.
Over the years, people have developed arguments both for and against globalization. To begin with globalization is associated with many positive benefits, one being that it has brought about quick growth of productivity. Due to globalization, many countries are now able to produce more goods and services in which they have a comparative advantage compared to their trading partners. This in effect has led to the achievement of better living standards for the people (Mishkin 17). Secondly, through globalization, there has been establishment of free trade zones which have greatly reduced poverty levels in countries. Country like India has benefited a lot from the establishment of free trade zone for the levels of poverty among his citizens has been reduced. According to Dehejia, in his article, Has Globalization Helped India?, “in these early globalization debates was the idea that freer trade may be harmful for wages and inequality in rich countries such as the United States, but it would generally be beneficial for people in poorer countries such as Mexico or India” (7). This compared with the fact that trade has a positive impact in the reduction of poverty dispels the idea that globalization only has negative effects to offer.
Poverty in the developing nations has been a cause of low economic growth as governments have to dedicate a large amount of the state resources in fighting hunger. There is an abundance of capital and skilled workers in America as compared to poorer countries which have the majority of the workers being unskilled. There is an indication that skilled workers’ pay has risen together with the realization of more profits for the capital invested while those of the unskilled workers lag behind causing the gap between the rich and the poor to widen even more. These shows that despite the difficulties faced, globalization has an overall positive effect on both the rich and the poor nations as it reduces poverty in the poorer nations and also causing the standards of skilled laborers in the rich countries to rise (Garcia 2).
Globalization has also benefited developing countries in their economic and financial development. This has been achieved with the help of developed countries as they agree to open their markets to the goods and services from the developing nations. According to Mishkin, “Opening markets to emerging-market countries is an important way that advanced countries can help emerging-market economies become successful. While providing aid to poor countries can, in the right circumstances, help eradicate poverty, it often will not work because it usually does not create the right incentives to promote economic growth.” (16). He outlines six elements of institutional reforms that would lead to better economies. These six factors are: developing strong property rights, strengthening the legal system, reducing corruption, improving the quality of financial information, improving corporate governance and developing firm and transparent supervision of the banking industry.
On the element of property rights Mishkin advises that the “Strong property rights are needed to encourage productive investment because it will not be undertaken if the returns on investment are likely to be taken away by the government or others” (2). The government should ensure that the country’s poor are able to get access to property rights as this enables them to gain access to capital, empowering them in their fight against poverty. This leads to an improvement in their living standards because this enables them to take loans which they would in turn invest and make a living from their investments. He argues that a quick and fair enforcement of contracts is an important step in supporting strong property rights in the process aiding financial development. This proves that strengthening the legal system has a positive impact on the financial development of a nation (Mishkin 2).
Globalization has led to an increase in the concern shown by governments to each other enabling one government to reach out to the other in time of need or even disasters that may occur. In the recent earthquake disaster that occurred in Japan, many countries reached out to offer a helping hand and very many Japanese lives were saved by this act of generosity. The international community also intervened in the recent post election violence that was experienced in Kenya in 2007 and helped stopped the widespread shedding of blood that was being experienced. Dictatorship form of ruling is slowly coming to an end as the heads of states know that they have to be accountable for their actions. The current International Criminal Court proceedings at The Hague are a clear indicator that the international community is greatly concerned with the lives of the Kenyan citizens that were lost as a result of irresponsible leadership.
The comings of new methods of transportation and communication have made it possible for consumers to participate in dissemination and sharing of information instantaneously. Globalization has allowed people to participate in international trade while sitting on their desk and in effect influencing the world economy directly. Economic globalization has manifold impact to the businesses around the world and has great influence on human aspects of life. Countries across the world are struggling to remain interdependent in various ways but because of globalization there is no area of human life that has been left behind. Human beings irrespective of their location can now be able to listen to the same music, wear same outfit and eat same food, in addition to making decision on issues pertaining to war and peace among one another. According to Naim, “Contemporary globalization is also different in that the speed at which it is integrating human activities is often instantaneous and almost costless. Moreover, the quantitative change in each of globalization’s components—economic, cultural, military, etc.—is so enormous that it creates a qualitative change. This alone has opened possibilities that are completely new—and also consequences that humanity has never seen before.”(2)
Finally, globalization has made it easy for corporate companies to regulate international legislations and the intermingling of different cultures. In a situation where policies are made that observe the global needs, exploitation of locals by regional organizations is minimized. When the different cultures intermingle, social interactions between locals and foreigners improve since the habits of the locals are understood by the foreigners therefore fewer misunderstandings would arise due to diverse cultures. Ease in propagation of information is another advantage. The media reports its news based on the global context hence people get informed on the matters affecting the world as a whole. In this way international relations are improved. Organizations get news of the countries with growing economies therefore leading to expansion into host countries and thus promising better returns (Mishkin 17).
Although globalization has great benefits as discussed above, it hardly passes without negative impacts that are attached to it. Globalization has increased unemployment levels in countries. Less manpower is required as technology advances. The increase in use of machines made more production to be achieved with less labor force. A nation’s competitive advantage in the international market is based on its ability to keep up with the constantly changing market conditions. In order to keep up with the international market embracing new approaches is fundamental therefore calling for change with time. Technology has proved reliable therefore being utilized by almost everyone. However, a lot of people are rendered jobless when their positions become unnecessary as machines do their work.
Globalization has impacted negatively as alternative labor source has created imbalanced wages in business. Asian countries offer cheap labor and one that is easily accessible. Countries that set national wages face a problem as most companies turn to Asia for cheap labor. There is also the problem of social degeneration whereby cultures that disregard morality are finding their way into communities that previously placed great significance to ethics and morals. These unethical and immoral practices are causing impacts such as communicable diseases (Weber et al 4). The youngsters hold the idea that since globalization has spread in their generation, the former beliefs held by their elders are backdated. This rebellion experienced worldwide is affecting most youths who engage in drug and substance abuse as they do not consider advice given by their elders as important.
Due to globalization, the corporate industry threatens to rule the world as it is making most of the guidelines to be followed. The local organizations feel that they do not have a voice in the legislative and administrative positions. The corporate group is justified to determine the procedures to be followed in day to day transactions as local policies are limited to particular regions therefore a disregard of the expanded market. However, the local organizations also have issues they need solved at the regional level which is proving difficult with the dominance of the corporate companies. Other disadvantages include terrorism and global warming for the world was safer ten years ago than it is presently. According to Weber et al” Globalization is turning the world into an enormous Petri dish for the incubation of infectious disease. Humans cannot outsmart disease, because it just evolves too quickly” (3). There has been a rise in criminal activities as a result of globalization. Increased acts of terrorism that end up killing many people rock the world every two to three years and this only serves to make the world a more dangerous place to live in than it was previously before globalization.
To sum up all these, the benefits of globalization are far more than the disadvantages. Some of the negative effects arising from globalization can also be avoided with careful planning. Global competition ensures that people better services and cheaper goods leading to an open economy due to the integration of fresh and new ideas from abroad (Mishkin 16). Globalization is responsible for the recent high rise in the living standards of some nations enabled by an increase in productivity because they now invest in the production of goods and also providing services in which they have a competitive edge/comparative advantage over their neighbors.
Many countries have developed through globalization as ideas flowed freely as the people get to learn from their trading partners in the different countries that they trade with (Mishkin 14). Internet access which comes about has increased a county’s knowledge of its neighbors as most nations are now using the internet as a way of advertising themselves. People get to know about the different cultures practiced all over the world as well as the different diverse religions that are practiced by these people. Neighboring economies which are now dependent on each other have experienced growth as it now spreads easily through trade between the regions. There is more to earn from export jobs in relation to other jobs. The easy flow of money has greatly benefitted the developing nations as they are now experience a reduction in the currency difference (Mishkin 9). This enables these countries to access goods and services from other nations more easily. The notion that people citizens from other nations are aliens is slowly fading leading to more interaction socially. Globalization is here to stay as the positive results far outweigh the negative results.

Works Cited
Dehejia, Vivek. “Has Globalization Helped India’s Poor?” New York Times,
2011. 15th.Oct.2011 <

http://india.blogs.nytimes.com/2011/10/07/has-globalization-helped-indias-poor/>

Garcia, Cardiff. “The Jackson Hole papers”. Financial Times, 2011.
15th.Oct.2011. < http://ftalphaville.ft.com/blog/2011/08/29/663971/the-jackson-hole-papers/>
Mishkin, Frederic, S. “Globalization and financial development”. Journal
of development economics, 2009. 15th.Oct.2011 < http://www0.gsb.columbia.edu/faculty/fmishkin/papers/07IMF.pdf>
Naim, Moises. “Globalization Is a Casualty of the Economic Crisis.” Foreign policy, 2009. 15th.Oct.2011 < http://www.unc.edu/world/2009Residential/Think%20Again.pdf >
Weber, Steven et al. “How Globalization went bad”. Foreign policy, 2007.
15th.Oct.2011 < http://www.wright.edu/~tdung/How_globalization_went_bad_FT.pdf>