Is Globalization Good or Bad?
The debate of globalization, the process by which businesses or other
organizations develop international influence or start operating on an international scale,
is usually viewed as very two dimensional, either good or bad. However, in some
viewpoints it can be seen as too complicated of an issue to decide if the overall effect of
its components are good or bad. Globalization has an overwhelming amount of good
and bad characteristics, making it impossible to pick one side. The many affected areas
of economics that are associated with the positive or negative actions of globalization
include the toll on developing nations, international organizations and the world
economy, impact of transitional economies, domestic activity and world trade.
The first component to consider would be whether or not developing nations see
positive reinforcements or negative ones. If you look at globalization, you will see how
it’s existence may easily create increased income inequality in these developing
countries. Birdsall, the founding president of the Center for Global Development in
Washington, DC, USA., states “The increase in inequality in the United States over the
last 25 years has been blamed on changes in trade, technology and migration patterns
associated with increasing economic integration with other countries. For developing
countries, any risk of increasing inequality associated with active participation in the
global economy is even greater.” This piece of evidence emphasizes the negative
outcome globalization has towards the world’s developing countries. This idea is
causing developing nations to suffer immensely by undermining economic growth and
efficiency. However, does this piece of evidence really prove whether globalization has
done more bad than good?
Another essential factor in this argument would be how the world economy plays
a role in the economy. When researched, most specialists will affirm that globalization
provides a steady advance in individual economies all around the world. This is a
common consensus because globalization causes the making of markets more efficient,
increasing competition, limiting military conflicts, and spreading wealth more equally
around the world. This was stated by James Tobin, an American economist who served
on the Council of Economic Advisers and the Board of Governors of the Federal
Reserve System, and taught at Harvard and Yale Universities. Without globalization,
individual markets would struggle from being deprived of international influence and
trade benefits. These facts can easily sway individuals to see the good provided from
globalization.
Globalization has improved many factors of our overall economy, but how has it
affected transitional economies? Economic theory suggests that Globalization should
bring several economic advantages to transitional economies such as greater diversity
of choice of commodities, lower costs as a result of greater econo...
