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Globalization and its impact
Globalization and its impact
The effects of globalization on world economies
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Dr. Tom Shaw’s roundtable made me more aware of the pros and cons with globalization. At the beginning of the event, he made us count off by twos, then he told the students who were number one that they were for free trade, and the number two’s were against globalization. The reason for this was to make us argue each side of the topic, making us more aware of how well this could turn out by continuing free trade or completely getting rid of it.
Some of the benefits of free trade would be, consumers receiving more items for cheaper prices and the companies would be making more profits since the consumers would be buying more, but if items would only be made in America, the companies would now have to pay the American people more money, yet it
would open more jobs for Americans, but lose jobs for those overseas working for the big corporations. Another downfall of getting rid of free trade would be that items would now be sold at a higher price than originally, but there are a lot of people who wouldn’t mind buying items at this price being that there are now no children being hurt and it most likely will be better quality. Another benefit of not having free trade is we would know that the people would be getting treated well and they would be have well working conditions. Seeing these two sides being argued really brings out more information than one really knows about the topic. By the end of the roundtable, we came to the conclusion that it would be highly difficult to get rid of free trade completely. Therefore, we must find ways to regulate free trade.
In this chapter of Naked Economics, by Charles Wheelan, he describes many aspects of trade. It begins by showing the capabilities of trade and how it affects everyone as a whole. It makes it so that everyone is better off than normal. To put it into perspective, he put the image in your head of how hard your life would be without trade, you would have to make your own clothes, find a way to get/make your own food, make your own car, etc... After showing some of the advantages to trade, he applies it to a global persona and begins to introduce his opinion on how global trade (globalization) makes us richer. One of the key explanations of this point is that trade frees up time in our busy schedule, therefore allowing us to use that freed up
Osland, S.J. (2003). Broadening the Debate, the Pros and Cons of Globalization. Journal of Management inquiry, Vol. 12 no. 2, pp.137-154
Free trade, interchange of commodities across political frontiers without restrictions such as tariffs, quotas, or foreign exchange controls. This economic policy contrasts with protectionist policies that use such restrictions to protect or stimulate domestic industries. In this article I will discuss the positive and negative effects of free trade. Trade can lead to an improvement in overall economic welfare if countries specialize in the products in which they have a production advantage. Trade allows businesses to exploit economies of scale by operating in international markets. International competition stimulates higher efficiency and reduces monopoly power. Trade enhances consumer choice and international competition between suppliers helps to keep prices down. Trade in ideas stimulates product and process innovations that generates better products for consumers and enhances the overall standard of living.
One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy of the United States. However, what effects does this policy have for the international market and the other respective countries in this market? The question is not as complex as it may seem. Both sides have strong opinions representing their respective viewpoints, and even the population of the United States is divided when it comes to taking a stand in the issue. After examining all factors on the two conflicting sides, it is clear that protectionism, from the side of the United States, is the only way the American industrial economy can expand for the benefit of its citizens and for its national welfare.
Another economist Douglas Irwin wrote a book titled “Against the Tide”. The book is an Intellectual History of Free Trade; it is an interesting, educational account of how free trade appeared and of how the concept of free trade has coped with two centuries of attacks and criticism.
When thinking about international trade, you have to consider three things. Those three things being opportunity costs and comparative and absolute advantages. Comparative advantages can benefit all parties involved in the deal, as long as the goods produced, have different
For the purpose, no matter which countries engaged in free trade, it has include developing countries and developed countries. Both of them, the main benefit of free trade is that manufacturers can more easily enter the larger global market. For instance, for developig countries, such as China, China has signed the free trade aggrement with Australia at 17/06/2015 (Australia-China Free Trade Agreement 2015). From the Finance Sina Report(2015), it has discussed that after China sign the free trade aggrement with Australia, it takes dramaticly change compare with China before. This free trade gives about trillion of Australia dollar infrastructure construction chance to China. That means this free trade agreement bring in China some good chance to take better science technology and considerable revenue. Due to the economy of a country, join into this free trade market will implies some profits from globalization to distinguish the labor force. Otherwise it has under intensifying international competition in the global market. This depend on the international specialized production and this foreign competing will pressure on local production firms. Because of that, the productivity of manufacturers within the country will be more efficient, and customers can have a larger range of choice of cheaper products produced at home and
... policies. People will continue to suffer in silence because of the world’s greed. So, while we enjoy our cheaply made goods and over consume the planet into demise, we never know of choose not to know the pain that went into the productions of those goods. Globalization may be championed as a gateway to financial growth for all nations, but only certain nations benefit from it. Global trading and integration has a negative effect on undeveloped nations and developed nations in many ways including; political systems, sovereignty, economy, way of life and much more. Earlier in the essay I asked ‘do the pros outweigh the cons when it comes to globalization’ and from my research I don’t see any real benefit. I don’t believe we should eliminate global business, but better the already lacking regulations and probably increase the standard of living equally for the world.
1. The fundamental advantage of free trade is the variety of items and the cost of them. People are
According to Mankiw and Taylor, Countries open up to free trade because it generates more profit, gathering new ideas about goods and services, wider range of customers, high opportunities through market diversification, access to main resources, access to better values and lower cost production, gain from participants, develop economies of scale, (2011)
On paper, it appears that there would be no negative consequences of free trade. Minimizing opportunity cost and utilizing a country’s comparative advantage seems like a perfect scenario. However, in real life, that is not the case. Many people, especially those doing the dirty work in developing countries, aren’t helped by free trade, and are often hurt by it. On the other side, many people are helped. Developing countries gain access to the wealth of developed nations, and developed nations can use developing nations to make things that they don’t feel like making, allowing for specialization of certain goods. As a whole, I think free trade is beneficial, but not necessary. The Mexican and Haitian farmers were doing well enough without free trade to live productive lives and make decent money. The US farmers were also doing well before the trade agreement with South Korea, but then saw conditions improve
For the first time, causing many to wonder, “What is globalization exactly, and why are the protesters so against it? “ “What are the mysterious institutions the WTO, the IMF, and the Bank- that the media keep? “ “And what could be so problematic about free
This week, we’ve all been giving global awareness speeches on topics that teenagers should know more about. Globalization is the reason you all have stood in the place I am in standing right now. It has directed our thoughts towards Snapchats and InstaVids instead of gun control or autism. Companies have revolutionized the way we act, with Apple’s iPhones and McDonald’s Big Macs, we no longer think about important newsworthy material. Yet, globalization is not a new topic. An early example is during the nineteenth century when the Silk Road allowed trade between China and Europe. The experience that we have now has just become controversial over the past ten years because more people are seeing it as a way to make our world smaller not larger. No matter what way you view it, almost every person on our planet is involved. Our parents work for companies that create more materials. Our governments focus on economic growth. We, as teenagers, look towards celebrity pop culture. It is all due to how globalization has changed our focuses away from the important ideals of life.
Frank, Barney (1999), “The Correct Approach to Globalization,” Congressional Record, [http://apcentral.collegeboard.com/apc/public/repository/ap05_comp_govpol_glob_42253.pdf], accessed 17 May 2012.
One of the key points is, that globalization has caused American citizens to lose jobs. They use this point, because businesses utilize the ability to take their business to another country and continue operation. With globalization is has created the ability to move to another country with ease. Typically businesses will move to a country that has less restrictions and requirements; allowing them to spend less money while having the same amount of production. This is possible, because in certain countries the labor costs and manufacturing costs are significantly lower. Arguing that since the connecting of foreign countries with one another allows the chance for extremely harmful and infectious diseases to be spread to one country from another. One of last points is that since people are exposed to so many different walks of life one could forget where they came from and their