Globalization is the trend towards a single, integrated, and interdependent world. Some humans may not even realize globalization plays a part in our modern lives, but examples that may be classified as evidence of this trend include: the ability to buy products from dining cuisines belonging to myriad of different ethnical cultures, a joint project in which a multinational group of astronauts are sent to the moon, the visit of a Canadian circus troupe to China, the establishment of international and intercontinental trade agreements, and the ability to watch a live television broadcast from a foreign television station.These examples are made from looking at globalization as a whole, but from an economic perspective, the definition of globalization changes.
“A phenomenon by which economic agents in any given part of the world are affected by events elsewhere in the world; the growing integration of the national economies of the world to the degree that we may be witnessing the emergence and operation of a single worldwide economy. ” (Arnold 41). This definition is still very closely related to the aforementioned denotation; in fact, the meaning behind the words is the same.In other words, globalization is the growing liberalization of international trade and the movement of capital, resulting in the increase of the integration of national growing economies. Our modern world is a prime example of a civilization that is undergoing globalization. By examining the observable effects of globalization on our world, we can determine whether ambiguous and advancing neoliberalism is beneficial to our economy.Upon the assessment of globalization through the factions of or relating to economics, such as trade, the worldwide market, flowing capital, standard of living, placement of jobs, and international dependence, it would not be a stretch to say though there are unfavourable side effects, they are outweighed by the benefits and globalization is a force that should be embraced instead of feared.
Globalization Essay Example
To prove globalization should be facilitated instead of prevented, we must examine one of the most important and fundamental aspects of the economy: trade.Since the appearance of Neanderthals, organisms of the Homo genus have been trading. Whether it is a trade of resources, services or unique skills, the presence of trade can be traced back in time. In fact, it can be said that without trade, the economy would definitely not look the same as it does currently, and perhaps not even exist, for trade signifies the evolution of humans and their ability to think, and without it, we –like most organisms– would have no need for a developed economy. Merchandise imports have increased 2 billion dollars and exports have increased by 200 million dollars between Canada and the world in a year, from July 2011 to July 2012. ” (“Canadian International Merchandise Trade Database”). Globalization creates more trading partners for every individual legal entity, which facilitates the flow of capital, resulting in the empowerment of trade and thereby the economy.
“In 2002, trade in goods and services as a share of world output reached 54%, up from 31% in 1980. ” (Jaffe 15).The outcome of trade and globalization acting together is a worldwide market. The worldwide market is results in economic change and benefit. For customers and businesses of varying sizes, a worldwide market and more trading partners results in better access to products produced and manufactured in foreign countries. “Due to the presence of a worldwide market, there is an increase in the production sector and there are lots of options for investments for different countries. ” (“Pros and Cons of Globalization”).
It is evident the economic phenomenon of globalization is beneficial in terms of trade and a worldwide market because of the considerable amount of increased choice. Furthermore, globalization aids the difficult task of keeping the costs of goods and services controlled to enable everyone the ability to use means available to help their families survive. Our economy is slowly beginning to open up, becoming more accepting and galvanizing innovation from all parts of the world. While trade is one of the major benefits of globalization, there is another that is deeply intertwined with humans’ lives: standard of living. Examples of locations around the world that have dramatically improved their respective living standards since the 1950s would be the Four Tigers of East Asia – Hong Kong, Singapore, Taiwan, and South Korea. ” (Sarel). These four areas of interest have managed to improve their living standards by deregulating and changing government policies that would impede globalization and open up world trade.
“The Globalization Index was compared to the life expectancy for various countries.A strong correlation appears between the degree to which a country has globalized and that country’s life expectancy. ” (Arnold 46). With better living standards, human life can be prolonged, seeing as more resources are given to that organism to ensure longer survival. In developing countries that have opened up their economies recently, we can detect exponential increases in income per person, meaning the citizens of that nation will be able to better provide for themselves and purchase goods and services with money that will be circulated, thereby exciting the economy further.Increasing standard of living is not limited to those in developing countries. Globalization increases the income of countries that have opened up, and when these funds are used on the infrastructure of the country including roads, healthcare, education, and social services, the standard of living in the country increases.
With a productive government that acts for the needs of the people it represents, globalization can evoke better standards of living around the world. Aforementioned are only a few of the many benefits of globalization.However, as with most things in this world, every advantage comes with a disadvantage. “The new forces [globalization trends] stand in an ambiguous relationship to neoliberalism and American hegemony. ” (Pieterse and Rehbein 29). Globalization can be interpreted in many ways, not all of them good. For example, large corporations can now hire people from developing countries with similar skill levels to the work force from the original country, but for a much lower price.
The corporations are making more money and its philanthropic owners will donate larger sums of money towards social welfare, but the situation is not as helpful to the general public. Corporations are now outsourcing and offshoring, and people living in developed countries find themselves being replaced by workers from another part of the world for a lower price. “Corporates are building up units in other countries that [are] equally well equipped, thus transferring the quality to other countries. ” (“Pros and Cons of Globalization”).Developed countries will lose their comparative advantages in terms of technology and professionalism when businesses construct advanced factories in other countries, thereby transferring the quality of produced goods and machines, making them as productive as the manufacturing and producing units back in the original country. “Overall global inequality is staggering, with 1 per cent of the world population owning 40 percent of the world’s assets. ” (Pieterse and Rehbein 26).
The increasing income inequality is slowly making the possibility of never leaving poverty a reality.Globalization has widened the income and poverty gap, as wealthier people in the world often claim most benefits of globalization. As a result, many of the middleclass are impoverished, and forced into debt. With debt, people are further burdened and unable to provide for their families, causing them to have to resort to desperate measures in order to survive. Globalization is not necessarily entirely beneficial to the economy, and evidence of this fact is supported by the evidence of the discussed occurrences. The presence of neoliberalism is changing the world.China and India in particular have benefitted from globalization, as they are the major political powers that have opened up economically and are on their ways to becoming world powers and even the possibility of possessing hegemony.
As a developing country, China has played to its strengths, and has been on the rise as an increasingly influential nation with enormous financial reserves to facilitate development. “Globalization can be a threat to cultures that are shared only by small groups of people… In this way, cultures blend together in a melting pot of global influences, especially in cities with large immigrant populations. (Hibbert 13). Like many countries reluctant to open up its economic doors, China was and is afraid globalization will result in the end of cultural diversity.
Just as Canada and countries in Europe have sought to restrict the amount of foreign content in television, film, and media, the Chinese authorities have regulated the quantity of imported television programs, which convey global messages. By protecting activities that promote and educate in regards to Chinese culture, China has deemed their culture safe, and has therefore opened up economically to improve itself financially and to gain power and influence as a nation.With the success of China will come many other countries wanting to open up for the benefits of globalization. At this point, unless an unanticipated change hits the world for the worse, globalization is nearly inevitable. Around the world, nations are gradually opening up and globalization will only evolve from there. As it is inevitable change, it is more beneficial to various nations and economies if they embrace change and adapt to make the best out of this phenomenon. “.
.. Offshoring is a two-way street.The United States might offshore certain jobs to, say, India or China, but foreign countries offshore to the United States too. Also, while some Americans do lose jobs due to globalization, we must remember that jobs are always being lost (and found) in an economy responding to market changes. ” (Arnold 49) As with offshoring, the world will develop and reconstruct itself based on our economy and the disadvantages of globalization will be diminished. Neoliberalism is not a threat to the human race; it will only serve to help develop our economy.
Globalization is beneficial to our economy and should be supported.