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icon Pros & Cons of Globalization

Debate the pros and cons of globalization based on the ‘Why do people oppose globalization?’ Article found on the Module 2: Lecture Materials & Resources page. You can formulate your posts based on other readings on globalization from your text and/or other print or online sources.

Submission Instructions:

  • Your initial post should be at least 200 words with at least 2 academic sources. Your initial post is worth 8 points.
  • You should respond to at least two of your peers by extending, refuting/correcting, or adding additional nuance to their posts. Your reply posts are worth 2 points (1 point per response.) 
  • All replies must be constructive and use literature where possible.

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Task:

Debate the pros and cons of globalization based on the ‘Why do people oppose globalization?’ Article found on the Module 2: Lecture Materials & Resources page. You can formulate your posts based on other readings on globalization from your text and/or other print or online sources.

  Globalization is a widely debated topic. Many politicians use globalization as a rallying cry for national angst.  The fact is globalization has both its pros and cons.  Understanding how these features fall in line with personal sentiment can assist one in rationalizing the benefits or detriments of globalization. “Globalization”, according to Oxford Dictionary is “the process by which businesses or other organizations develop international influence or start operating on an international scale”. From this definition, should create national pride of pursuing business beyond its borders.  Examining both sides of the debate fairly depends on which author or politician is spinning the tale.

For those that believe globalization is positive, point to the fact that every industrial revolution in history be it the mechanization, assembly line, computer automation, and now cyber physical systems, (digital revolution) has created globalization. The benefits of globalization are:

Powering economic growth

Allowing spread of ideas that improve lives

Increased trade promotes lower prices

It heightens competition with domestic products, capital, and labor markets

Promotes companies to adopt different trade and investment strategies

The key take away for proponents of globalization is that it promotes economies in both developed and under developed economies by increasing productivity, job creation, and higher wages. The benefits create a “better standard of living” for those economies that “buy in” and participate in global economy.

The opposition to globalization don’t see the benefits quite the same way. International trade for cheaper skills from a different market have adversely affected the manufacturing sector in the USA. Outsourcing to cheaper labor markets negatively impacts salaries domestically and lowers job creation in the manufacturing sector. Conversely, intensive capital projects are taken away from developing nations to developed nations, negatively impacting developing nations.  The Cons:

The rich get richer-poorer economies cannot keep up with richer economies

Job loss

Exploitative working conditions

Taxation avoidance by multinational corporations

Regardless of one’s position on globalization, the net result is efficiency in international business performance.  As with any competition, there will be “winners” and “losers”.  Globalization may be detrimental to domestic manufacturing but beneficial to both domestic and international consumers.

References:

Corporate Finance Institute (n.d.), Globalization the World Interacting Together Retrieved

https://corporatefinanceinstitute.com/resources/knowledge/other/globalization/ (Links to an external site.)

Gopinath, G. (n.d.) An Economist Explains the Pros and Cons of Globalization

The World Economic Forum                                                                          Retrieved From:

https://www.weforum.org/agenda/2019/04/an-economist-explains-the-pros-and-cons-of-globalization-b2f0f4ae76/#:~:text=The%20advantages%20of%20globalization%20are,products%20in%20the%20world%20economy. (Links to an external site.)

Hill, C. and Hult, T. International Business: Competing in the Global Marketplace 12 ed.

McGraw-Hill 2018

Oxford Dictionary (2020) Globalization                                                        Retrieved From:

https://www.lexico.com/definition/globalization
 

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Globalization is the process of amalgamation and collaboration among companies, people, and governments around the world (Hill & Hult, 2018). Globalization has evolved due to advances in communication technology and advances in transportation, to name a few (Boas, 2000). The term globalization is a concept that has been debated by many. Supporters of globalization say that it has given countries the ability to form free trade agreements. With a free trade agreement between two or more countries, barriers on imports and exports have been reduced (Boas, 2000). The supporters of globalization also believe that globalization has created more opportunities for developing countries around the world (Boas, 2000). Additionally, pro-globalization supporters point out that globalization has increased cultural awareness (Boas, 2000). There is no question that globalization has some positive repercussions, but it also has its negative consequences.

Those who oppose globalization argue that it has its side effects. These can include job losses and stagnant wages (Contractor, 2017). Opponents of globalization also point out that it contributes to worker’s exploitation and has increased human trafficking (Contractor, 2017). Furthermore, those who are against globalization also say that globalization has led to global health issues and the spread of pandemics (Contractor, 2017). Another point they argue is that it only benefits the rich and makes them richer while making the non-rich poorer (Contractor, 2017).

Globalization is a widely debated topic. There are two sides to this globalization coin. On one side, it can stimulate economic growth in developing countries and raise cultural awareness. On the other side, it can be disastrous by increasing job losses and increasing worker exploitation. Despite these two sides of globalization, its real intent is to have people and countries exchange goods and information faster with less difficultly (Hill & Hult, 2018).  

References

Boas, T. (2000, July 05). Anthony Giddens Discusses the Globalization Debate. Retrieved from Carnegie Endowment for International Peace: https://carnegieendowment.org/2000/07/05/anthony-giddens-discusses-globalization-debate-pub-8655

Contractor, F. J. (2017). Why do prople oppose globalization? . New Haven: Yale Global.

Hill, C., & Hult, T. (2018). International Business: Competing in the Global Marketplace. New York: McGraw-Hill.

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