Is Globalization acceptable out of a economic point of view?I'm stuck with a economic project that i need help with, is globalization a acceptable thing out of a economic point of view? sorry if i...
I'm stuck with a economic project that i need help with, is globalization a acceptable thing out of a economic point of view? sorry if i spell incorrectly i'm afrikaans.
There is lots of discussion at present about the concept of globalization because we are in a period of adjustment and change. Possibly dating back to the years soon after the end of WWII, one group of countries in general has been at the forefront of economic development and has realized the benefits of that position. These so-called First World countries have enjoyed prosperity for the countries as a whole and for many of each country's citizens as their industrial systems have developed, providing employment and disposable income to the population and bases for trade and commerce between nations.
Now, so-called Third World countries are trying to develop their own systems so they can become less dependent upon others. This creates significant amounts of new competition in the trade markets, leads to unemployment in First World countries when jobs are shipped overseas to countries where the work can be done at lower cost, and creates concern for the environment. (First World countries developed their industries without much concern for environmental impacts. Now, Third World countries want to develop in the same manner but a similar pattern of pollution and waste-production may have more far-reaching consequences.)
In my opinion, globalization is essential for the eventual good of all. However, change is difficult and painful - I think it's going to be a long and contentious process.
There are a couple of possible good effects of globalization on a country's economy. One is a broader and deeper market for local goods. Think of coffee beans, for example. With globalization, the market for local, small farmer coffee beans increases. The small farmers have more opportunity to sell their crops that are sent to many places in the world where shopper like me can buy them. The effect on the economy is that more money moves into a country's economy and more money moves into the small producers pockets. The country has a greater gross national income and the small producers have greater gross earnings. As a result, the country can implement more services like health, roads, and education. Similarly the producer can acquire better food and medical care and education and other goods and services. The resultant exchange of money within the country stimulates the economy even further, ultimately producing a higher standard of living.
On paper, Globalization is a good thing. Countries specialize in certain areas and trade with other specialized countries. It allows everyone to have goods and services while increasing the standard of living. For example, Japan doesn't have a lot land to grow crops; however, they do have a certain level of expertise when it comes to electronics. The US has plenty of land for growing crops. If we trade with Japan, then we both have the same goods without the stress of generating them all on our own.
With that said, sometimes Globalization can be a bad thing. If we depend on another country to provide us with a particular good, there can be problems. If our country has a disagreement with them or if their country has some time of crisis, we can find ourselves in trouble quickly.
To economists, globalization is absolutely a good thing. Economists believe that free trade allows people in all countries to increase their standards of living.
The reason for this is rooted in the idea of "comparative advantage." This idea says that some countries give up less to make certain products than other countries. When each country specializes in areas where it has a comparative advantage, the total production in the world increases and there are more goods and services available to all people.
Please look at this link for a more in-depth explanation of this idea.
Sure, any business can improve with globalization- as long as you're not being outsourced. If you are manufacturing products and can have them made for you overseas cheaper, then you're ok. If your company is being replaced with overseas companies, you are not a happy camper.