There are pros and cons to globalization, with each pro comes a con. Every pro and cons touches basis on different aspects of the world for example labor, environment, health care equality, governance and etc.
Globalization benefits the wealthy and further impoverishes the poor, resulting in a widening wealth gap worldwide between the rich and the poor-especially harmful to the low-income consumer. Income earners in the top one-fifth in the United States make almost twentyfold what income earners in the bottom fifth make. This ratio doubled over the last two decades. The top 1 percent of income earners hold about 40 percent of the country’s wealth, more than double the percentage in 1975. American families with incomes over $100,000-the richest group of Americans-saw their average net worth soar by 22.4 percent from 1995 to 1998, to $1.7 million per family. The United Nations reports that the wealth of the 200 richest people in the world is greater.
Socially we have become more open and tolerant towards each other and they who live in the other part of the world are not aliens as we always thought. There are examples like now Indian girls work in call centers and work nights, which was a taboo even two years back. We are celebrating Valentine’s Day, scraping on Orkut, watching the Idol series, Fear factor, the Indian version Big Brother. There is a lot of technological development that we have undergone over the years. There are fewer brain drains since Asians are working in their own country though for a foreign company but are earning foreign exchange for their country. While discussing the positive effects of globalization, how can I leave out the impact of foreign trade on an economy? Comparative advantage has always been a factor even in the old times. While trade originated in the times of early kingdoms, it has been institutionalized due to globalization. Previously, people had to resort to unfair means and destruction of kingdoms and countries to get what they wanted. Today, it is done in a more humane way, with mutual cooperation. People, who operate in uncivilized ways, now have to face the WTO and other world organizations that have been established with a view to control and regulate the trade activities of the countries.
Economic freedom and democratic government go hand in hand. One cannot exist for long without the other. Free and open markets encourage the development of institutions that are based on the rule of law and representative government. Global institutions that exist to encourage open markets and economic growth only serve to strengthen the sovereignty of a free nation-state. The World Trade Organization is not a world government body, but simply an organization created by an agreement among member nations to maintain open markets for the free flow of goods and services, essential to democratic societies.
It is claimed that globalization increases the economic prosperity and opportunity in the developing world. The civil liberties are enhanced and there is a more efficient use of resources. All the countries involved in the free trade are at a profit. As a result, there are lower prices, more employment and a better standard of life in these developing nations. It is feared that some developing regions progress at the expense of other developed regions. However, such doubts are futile as globalization is a positive-sum chance in which the skills and technologies enable to increase the living standards throughout the world. Liberals look at globalization as an efficient tool to eliminate penury and allow the poor people a firm foothold in the global economy. In two decades from 1981 to 2001, the number of people surviving on $1 or less per day decreased from 1.5 billion to 1.1 billion. Simultaneously, the world population also increased. Thus, the percentage of such people decreased from 40% to 20% in such developing countries.
Life expectancy has almost doubled in the developing world since WWII and is starting to close the gap to the developed world where the improvement has been smaller. Child mortality has decreased in every developing region of the world. Income inequality for the world as a whole is diminishing. Developing nations also had a more positive view of the institutions of globalization. In Sub-Saharan Africa 75% of households thought that multinational corporations had a positive influence on their country, compared to only 54% in rich countries. Views of the effects of the WTO, World Bank, and IMF on their country were nearly as positive in Africa (72%). On the other hand, only 28% of respondents in Africa thought that anti-globalization protestors had a positive effect on their country. Protesters were viewed more positively in the U.S. and West Europe 35%.
The Federal Reserve Bank of Dallas set out to document the connection between globalization and public policy. We found that the more globalized nations tend to pursue policies that achieve faster economic growth, lower inflation, higher incomes and greater economic freedom. The least globalized countries are prone to policies that interfere with markets and lead to stagnation, inflation and diminished competitiveness. Globalization has influenced trade barriers and communications among countries has in turn habituated the way educators educate. Corporations have targeted schools and colleges and have turned to them in order to help with expansion. Courses and programs were restructured in order to increase the marketing for programs such as MBAs and distance learning courses. A distance learning course is an online based course that has helped people who may already be working or those who need to stay at home achieve a degree. As a result the cost for students to attend universities has gone up as well, leading to a change in the way loans and grants are distributed and in what quantity.
Free and open markets encourage the creation of institutions and cultures that support the rule of law and free expression necessary to the protection of human rights. Globalization spreads the views of economic and political freedom to the far corners of the world. Taiwan and South Korea are excellent examples of the positive effects of globalization. As these countries developed economically, their political freedom expanded rapidly. The contrast between the open economy-and freedom-in South Korea and the closed economy-and lack of freedom-in North Korea is striking. Politically open societies that guarantee private property rights and the market allocation of resources grow at three times the rate and are two and one-half times as efficient as societies that do not guarantee these freedoms. Integration into the world economy results in information concerning domestic human rights abuses being dispersed more quickly to the outside world and therefore brings pressure on the offending government. Since nations on the periphery of the world economic system are not subject to retribution, they can engage in state terrorism against their citizens, and thus are the most egregious violators of human rights. Examples include Cambodia under Pol Pot, Albania during the Cold War, and North Korea.
The perception people have on the current economy is playing a major impact in globalization effect on education. Regardless of the higher costs, students are still finding it necessary to stay in school and get as much accreditation as they can before entering the job market. It’s projected that in the next few years enrollment numbers will continue to rise significantly due to the belief that not having a degree in today’s economy is detrimental to success. The restricted courses are allowing students to prepare for particular jobs as opposed to giving them a general education on a subject. This is described as being a “managerial-based” teaching strategy where students are not only taught the concepts needed for their degree, but in leadership as well.
The World Bank is helping poor people from being excluded from the benefits of a globally integrated economy. Access to credit, access to justice, access to knowledge and to the media, access to education, especially for girls who are so often excluded, access to property rights. These are critical as is the need to protect the vulnerable, whether they are women and children, or the victims of war. We are working in all these areas, invariably with NGOs. And, in the aftermath of the East Asian crisis, we have made a major commitment, not only to improve financial openness and corporate governance, but also to build systems to protect displaced workers and other vulnerable groups who are victims of the downside of globalization.
Foreign workers employed by U.S. multinationals in their homelands fare better: Workers at Nike’s footwear plants in Vietnam earn average monthly take-home pay of $55, compared to Vietnam’s per capita income of $26 month. Employers in Vietnam can operate their factories seven days a week, yet Nike orders its factories to close on Sundays. The minimum ageing Vietnam for factory workers is 15, but in Nike’s footwear factories workers must be 18.18 Nike employs 45,000 people in Vietnam, but has exported little of its production to the United States due to 35 percent tariffs imposed by the U.S. Under the trade agreement recently signed by the U.S. and Vietnam, those tariffs will drop to 10 percent. The trade deal is expected to boost Vietnam’s exports by $800 million annually, creating hundreds of thousands of new jobs.
Global capitalism results in rapid economic growth, thereby generating the resources necessary to clean up the environment, develop more efficient, CO2-reducing technologies, protect ecosystems from inefficient and wasteful practices, and continue scientific research to improve our knowledge of the environment and how to reduce pollution further. A growing, vibrant economy results in a cleaner environment. Air quality in the United States has improved dramatically since 1970, the year the Environmental Protection Agency was created. Emissions of every major air pollutant have decreased, with the exception of nitrogen oxides, which experienced an 11 percent increase from 1970 to 1997. But these environmental improvements didn’t come cheap. EPA estimates that the total bill for environmental protection in the United States from 1971 to 2000 would amount to $3.6 trillion (in 1997 dollars).
Open and free markets worldwide contribute to better living standards, a higher life expectancy, higher literacy rates, and a healthier life. People around the world are better fed, clothed, educated, work less, and have more leisure time than ever before. Meanwhile, the information based world economy will bring faster, greater economic growth worldwide, improving the quality of people’s lives by giving millions a chance in the “new economy. “Life expectancy in the developing regions of the world that have enjoyed the fastest economic growth due to open markets and high foreign investment is on a par with the developed world, while the infant mortality rate (per 1,000 live births) has plummeted. In the East Asia/Pacific region, life expectancy at birth is 69 years; Latin Americans can expect to live 70 years; babies born in the Middle East and North Africa today will live to the age of 68, on average. Improvements in life expectancy alone in the U.S. added about $2.8 trillion (in 1992 dollars) to national wealth between 1970 and 1990.
Part II Cons of Globalization
American families with incomes of less than $10,000 annually saw their median net worth drop by 25 percent to $3,600 between 1995 and 1998.The net worth of those with incomes between $10,000 and $24,999 dropped by 20 percent to $24,800.6 Between 1970 and 1995, the number of low-income renters in the United States increased by almost 70 percent, to 10.5 million, while the number of low-cost rental units fell, from 6.5million to 6.1 million-a shortfall of 4.4 million units in the “affordable” range. Countries with more than half of their populations living below the national poverty line in the 1990s included Azerbaijan, Chad, Gambia, Haiti, Honduras, Madagascar, Mauritania, Nicaragua, Niger, Peru, Sierra Leone, Tanzania, Vietnam, and Zambia-all of these countries experienced substantial declines in annual export volume from 1980 to 1997.8.
There is also a threat of corporates ruling the world because there is a lot of power, which is invested in them due to globalization. For nations that are at the receiver’s end are also giving up the reins in the ends of a foreign company which might again lead to a sophisticated form of colonization. Globalization has had negative implications for Indian women. Their plights are similar to those of women in other developing regions such as Africa and Asia. Globalization has made many international corporations richer by the billions. However, what most people are not aware of is that women in these developing countries are suffering enormously due to this expansion of corporate empires. According to estimates from World Development Indicators, “Women work two-thirds of the world’s working hours, produce half of the world’s food, but earn only ten percent of the world’s income, and own less than one percent of the world’s property.
. In many ways, corruption undermines the potential benefits of globalization. For instance, it increases the risk and cost of doing business in a given country, hence chasing away foreign capital. It also influences foreign aid, which can be cut or even halted by the donor country if too much of it is skimmed by corrupt politicians and bureaucrats. In Uganda for example a study revealed that only twenty-seven cents of every dollar donated for education purposes made its way to the countries schools. The rest was lost to local patronage politics. The environmental Kuznets theory states that economic growth in poor countries will always coincide with negative environmental effects until a certain income level is reached. Economic activity often results in the negative effects of globalization, such as chemical waste and air pollution. Still, the cost of cleaning these effects up is not included in the price of a product. In many cases, specifically in the developing world, manufacturers take advantage of lax regulations and cause air pollution and chemical waste without restraint.
The most recent and stunning example of the drawbacks of globalization is the current worldwide “financial crisis”. But even before the crisis began, American consumers were experiencing the drawbacks of America’s globalized economy. The U.S., which imports 70% of its oil supply, became very dependent on Middle Eastern oil. Foreign organizations, such as OPEC (Organization of Petroleum Exporting Countries) were perceived to have control over oil prices since they controlled production. Increased demand and stagnant production sent gas prices soaring, forcing Americans to tighten their wallets. Today, as the “financial crisis” spreads, the dependence of nations on the globalized economy is even more apparent.
Developing countries don’t want to lose their own identities and cultural practices. They fear that globalization will take away their control over the political and economic decisions that affect their country. Cultures, traditions, and languages are threatened in a way people in the United States can never understand, unless they are of Native American decent. China and other emerging market economies are also benefiting as multinational corporations shift manufacturing to their low cost workers and then sell massive amounts of goods to Americans.
However, in 2008, for the first time in many years, these trade deficits started to shrink as US consumers curtailed spending after a brutal 6,000 point drop in the stock market over the course of the year. Thinking that by curtailing their spending they could improve their lot, American consumers unwittingly started the negative aspect of globalization most feared by economists, strategists, and corporate CEOs. It’s a part of the natural economic cycle that central bankers had hoped to postpone indefinitely through lower interest rates, easy credit, and inflated home values resulting in Recession.
Environmental degradation due to unrestrained activities of multinational corporations whose sole aim is to multiply profits. Although poverty has been reduced to a certain extent, new economic disparities have been created. There are stark regional disparities in poverty. Basic necessities in life are set aside in favor of profits. Many developing countries have been occupied with facilitating foreign investment in industries that are lucrative to foreign markets and discarding the most fundamental needs of the people. Globalization aids the removal of national controls over cross-border financial flows. Dramatic outflows of capital from one country to another have caused havoc in some currencies, particularly in Southeast, and South Asia including Bangladesh.
Advances in technology aggravated by the outflow of capital to low cost production sites in the developing countries has caused growing unemployment in the developed countries, which is an cause offence to human dignity. Globalization has popularized the consumer culture. Consumerism has given birth to materialism where people are more interested in what they have rather than the essential aspects of humanity. Global consumerism is now forming a homogeneous global culture where rich indigenous cultures of many developing countries are being replaced by cultures with vibrant economies. Formal education systems are emphasizing technical and managerial skills responding to market demands and leaving aside traditional academic subjects. This means that education is nothing more than acquiring specific skills and techniques to do business and less emphasis on development of social or basic sciences.
Air and water quality are substantially worse in developing nations, especially reliant on exports for a large share of their economic output where lax regulatory controls allow foreign corporations to locate their factories and exploit the environment. Greenhouse gas concentrations and world temperatures are rising. Since the industrial revolution, human fossil fuel use has increased atmospheric carbon dioxide concentrations about 30 percent, from 280to 360 parts per million. The Intergovernmental Panel on Climate Change (IPCC), a U.N.-sponsored committee drawing on 2,500 of the world’s leading scientists, found that global mean surface measurements have risen 0.5 to 1.1oF since the late 19th century. Climate computer models predict that the Earth will continue to warm. The IPCC estimated that, by 2100, the Earth will warm by 1.8 to 6.3oF relative to 1990, with a mid-range estimate of 3.6oF.2 and the world’s largest economies and international traders are also the biggest greenhouse gas emitters, The United States leads the pack.
Globalization undermines the sovereignty of free, democratic nation-states due to the power of world trade and finance institutions that do the bidding of global corporations. The World Trade Organization usurps the authority of sovereign nations to enforce their own laws, regulations, and standards. Public Citizen’s Ralph Nader writes: “Under this new [WTO] system, many decisions affecting people’s daily lives are being shifted away from our local and national governments and instead are being made by a group of unelected trade bureaucrats sitting behind closed doors in Geneva, Switzerland. These bureaucrats, for example, are now empowered to dictate whether people in California can prevent the destruction of their last virgin forests or determine if carcinogenic pesticides can be banned from their food, or whether the European countries have the right to ban the use of dangerous biotech materials in their food. Moreover, once the WTO’s secret tribunals issue their edicts, no independent appeals are possible. Worldwide conformity is required.
Globalization is unweaving the social fabric of agrarian-based societies, destroying local livelihoods, and endangering public health. Globalization is creating potentially dangerous genetically modified (GM) “Franken foods” to replace healthier, organically grown foods that provide the basis for local, agriculturally based economies. Global technology is creating a “monoculture” worldwide that destroys unique communities and isolates individuals.
When I started to do this paper I didn’t know which side to choose stick with pros or cons and the more I did research and read through the pros and cons I started to side with both becoming neutral of the whole entire thing. It’s true that Globalization has it pros and with globalization it has helped a lot of us broaden our horizons on factors we as a country did not have. For example because of globalization different countries get to have the same things we have. They receive the same technology and find other sources to deal with their issues.one good thing that comes from globalization is trade and though trade has it negative effects it has given not only countries such as the U.S to have a variety of products from different countries as much as it has given those countries products that they themselves do not have.
In the aspect of education globalization has its positive effects because it gives young adults from different areas of the world to study abroad to study in places that give them a higher education. When students from Africa, Iraq come to the U.s they feel they are receiving an education of a lifetime because they cannot get that anywhere else because perhaps there country doesn’t have that luxury. Health wise being able to have other countries help them give them the opportunities to trade medicines that will help many of these sick people all over the world. Globalization has made it so countries now have television, know how to use cell phones and find more ways to communicate with those surrounding them.
Socially Globalization has gotten many races to come together and work as one. Yet the same pros can end up in cons globalization has made it so employees receive more jobs but also it has abused those labor laws and taken it to an extent where there are others losing their jobs. But there are countries that feel that due to globalization they are losing everything they stood for. Many of the rules that have been applied for their country has been taken over by globalization. While most are forgetting there background and leaving their morals for globalization. To some this may not seem as an issue but for others it taking away their identity. Like it’s been said the richer are getting richer and the poorer are getting poorer. People fear that they will lose power over there countries tradition and they will soon give power to those who are trying to globalize the country.
That isn’t the only negative part of globalization but because of globalization the climate is changing and people is fearing of to become of the world. Would globalization create so much chaos that sooner or later the world itself would be demolish. Only those who benefit from globalization find it to have pros because in all reality if you think about the cons outweigh the pros. I only say this because with every pro someone has given there is an exact con that has a worst effect on people then the pro. That’s why people say the richer get richer because someway somehow they benefit more than the poor. Yes the poor get to have some of the benefits. But the rich find globalization good because of its economic benefits. One of the consequences of globalization is that Corporate is going to end up having all the power over every country.
It’s also said that just because people are receiving education form abroad doesn’t mean they are benefitting in every aspect of education. To most it seems that the educations many are receiving are only to benefit the corporate world, by teaching things that involve creating a business. This is what is meant by the belief that the corporate world is trying to take over and make everything industrialize. Education is revolving more around technology and no longer touching base on tradition and culture. It’s to say the corporate world is making us into their own personal puppets. By gathering us up and creating a world that even if some of us suffer, they still receive partial gain from.
In a few years you will see the world forgetting all morals, culture and tradition. Why, because the corporate world will have us all working overtime and creating money to make their empire rise and our worlds crumble. There are issues they are not looking at and are letting pass by because they feel, if they do not have a solution now with their expectations they will soon. Globalization has made it so the pros benefit those who want to benefit from it and those who don’t simply just don’t. One example is globalization has brought many fast food restaurants now kids in china can say we can go to McDonalds and now due to that they are increases in obesity and health problems rising. But that just one of the many issues facing some of these countries and all the corporate people see is money in their eyes a rise of product and more places to create.
The funny thing about it is that even those who complain only complain to a certain extent. What I mean is if globalization in some way benefits them in a certain aspect they will not complain of that aspect yet complain of the one that doesn’t benefit them. That’s what the world has come to . Where we become greedy for the basis of ourselves and enjoy what we benefit yet complain of what we don’t. Just like globalization every benefits in sum particular way , but we lose in another at the end of the day. Countries all over find a benefit , but those who benefit the most aren’t us , it’s those making money days on in from and us and using it in other places. Those who get money from taxing and trading . The economy that at one minute rises and the next doesn’t. Globalization gives us the utilities we need but doesn’t add how we may be in deficit form all of it. It doesn’t say how because of globalization our environment is being threatened and so are we. No it says more franchise places, more trade for the U.s to gain profits that really all its saying PROFIT, PROFIT, PROFIT.
The Poor like Globaliztion. (2003, july 1). Retrieved from Global Envision: http://www.globalenvision.org/library/23/504/
Inculcation of Ethics Through Education and Globalization . (2008, August 17). Retrieved from ArticlesBase: http://www.articlesbase.com/ethics-articles/inculcation-of-ethics-through-education-and-globalization-effects-on-ethics-525076.html
Arjun, K. (n.d.). Positive effects of Globaliztion. Retrieved from Buzzle: http://www.buzzle.com/articles/positive-effects-of-globalization.html
Batterson, R., & weidenbaum, M. (2001). THE PROS AND CONS OF. St .Louis: Center for the Study of American Business.
Burande, A. (n.d.). Advantages of Globaliztion. Retrieved from Buzzle: http://www.buzzle.com/articles/advantages-of-globalization.html
Doherty, P. R. (n.d.). Globalization and Education. Retrieved from Ezine Articles: http://ezinearticles.com/?Globalization-and-Education&id=4057621
Fisher, R. W., & Cox, M. W. (2006, April 9). The good in globalization. New York Times.
Frost, M. (n.d.). Globalization. Retrieved from http://www.martinfrost.ws/htmlfiles/globalization.html
Ganguly, P. (2009). Pros and cons of Globalization. Retrieved from Buzzle: http://www.buzzle.com/articles/pros-and-cons-of-globalization.html
Knowedge, Y. (n.d.). Negative Effects of Globalization – Corruption79. Retrieved from Hubpages: http://hubpages.com/hub/Negative-Effects-of-Globalization-Corruption
Knowledge, y. (n.d.). Negative Effects of Globalization – Chemical Waste and Air Pollution. Retrieved from Hubpages: http://hubpages.com/hub/Negative-Effects-of-Globalization-Chemical-Waste-and-Air-Pollution
Negative Effects of Globaliztion. (n.d.). Retrieved from Global India: http://global_india1.tripod.com/negative.htm
Ronald, S. (2009, March 21). Globalization and the U.S. Economy. Retrieved from Suite101: http://americanaffairs.suite101.com/article.cfm/globalization_and_the_us_economy
The negative Aspect of Globalization. (n.d.). Retrieved from truth-it: http://www.truth-it.net/the_negative_aspect_of_globalization%0B.html
The Negative Effects of Globalism. (n.d.). Retrieved from truth-it: http://www.truth-it.net/the_negative_effects_of_globalization.html
Tim Cullen Associates. (1998, December 10). Economic Globalization and Human Rights. Retrieved from TCA Tim Cullen Associates: http://www.timcullen.com/what_we_say/speeches/economic_globalization.html