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This article talks about how globalization can affect the world government it says that corporations could control the government, because they have so much affect of globalization. Globalization also hurts people in the developed countries, because companies will go to less developed countries to hire workers for less money. Also globalization can spread diseases and technology that can make people less sociable. Globalization also might force developing countries to western cultures even if the do not want to. Also it could make it so high quality products that are usually given to the United States to make will be given to countries that can produce it for less money.

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Globalization is not a new phenomena, the seeds were sown long back when the Dutch East India Company and the British East India Company started trading with India. In history, there were trade relations between different countries like Arab and Egypt, and now in modern times, that has translated into Globalization or Free Trade. It's true that ultimately all the free trade resulted in the white man taking the burden proactively, but then globalization leads to more employment and higher standard of living, especially among developing countries. Theories suggest that globalization leads to efficient use of resources and benefits all who are involved.

According to libertarians, globalization will help the world to deal with crises like unemployment and poverty. It will help us to raise the global economy only when the involved power blocks have mutual trust and respect for each other's opinion. Globalization and democracy should go hand in hand. It should be pure business with no colonialist designs. The way we have developed in the last 10 years, globalization seems to have given us good returns. Globalization has made the life of the third world citizen a completely different story. There are so many foreign companies that have made way to Orient and have made India a brand name all over the world.

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Evaluating the Major Pros and Cons of Globalization

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Globalization has made the world a smaller place. As with everything else, it has its advantages and disadvantages. Globalization refers to the absence of the walls that every country had, based on suspicion, mutual distrust and ambition. Different countries were in fact different worlds, and therefore, could never manage to deal with natural disasters, deadly epidemics, etc., which challenged us.

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This article summarizes the main negatives of globalization like globalization benefits more developed countries and more industrialized ones. Globalization affects the environment, because most of the people involved do not care about the environment. The article also states that globalization has taken away countries way to make decisions and ability to help their citizens and weak areas in their country. Finally globalization has taken away a country's culture and their normal way of life, globalization has forced developing countries into a western way of life which can hurt the people in them as a whole and that has made a lot of people upset.

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In this article, we shall examine the pros and cons of globalization. Globalization, or the increased interactions between individuals with regards to issues such as trade and communications, has been a strongly debated issue in international relations. We will lay out and evaluate the different arguments in the debate on globalization. We will look the arguments that supporters of globalization make, as well as what the critics say about globalization.

Globalization

Globalization has within it a number of characteristics such as "the international flow of ideas and knowledge, the sharing of cultures, global civil society, and the global environmental movement" Stiglitz, 2007: 4). However, many also examine globalization from the points of economics and political economics. Globalization from the perspective of economics is the "economic integration of the countries of the world through the increased flow of goods and services, capital, and even labor" (Stiglitz, 2007: 4). Or, the International Monetary Fund (1999) defines globalization as "the growing economic interdependence of countries worldwide through the increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology" (in Osland, 2003: 138). And as we shall see, according to some scholars, the pros and cons of globalization often stem from what sort of globalization, or what aspect of it, we are examining.

Globalization has been a point of contestation amongst various international actors. For example, as the 2004 World Social Forum, human rights organizations, and individuals congregated to talk about globalization, what what it is doing to human rights and power relationships in the international system. For example, Joseph Stiglitz (2007), in the first page of his book "Making Globalization Work" states that "I believe globalization has the potential to bring enormous benefits to those in both the developing and the developed world. But the evidence is overwhelming that it failed to live up to this potential. This book will show that the problem it not with globalization itself but in the way that globalization has been managed. Economics has been driving globalization, especially through the lowering of communications and transportation costs. But politics has shaped it. The rules of the game have been largely set by the advanced industrial countries-and particularly by special interests in those countries..." (4). He goes on to say that these special interests have organized the system in a way that benefits them and what they care about, although unfortunately at the expense of individuals in the global south, and what is best for them.

Again, part of the difficulty to determine whether globalization has been a positive or negative force stems partially from how we define globalization. Usually, when people speak about globalization, they are doing so with the idea that we are speaking about economic globalization. And while that is clearly a central element of globalization, for some, that is not their primary focus when they are either supporting or criticizing globalization. For example, they may be speaking not so much about economics as they are about other socioeconomic issues, cultural issues, or more direct environmental issues (Champlin & Olson, 1999, in Osland, 2003).

History of Globalization

Historically, the debate on globalization, while always there, was starting to happen even within global north states. Now, many human rights activists and individuals in economically developing states warned about the dangers of globalization, or more specifically, the actions of economic powers (be they states or businesses), and what those decisions would do to the global south, which at times came in the form of some sort of human rights or environmental violations. But, in the early 2000s, such as at the 2004 World Economic Forum at Davos, many were raising the question about what globalization could actually do; did the reality of globalization fit with what some were promising would happen with an increasingly globalized and interconnected world (Stiglitz, 2007).

Interestingly, ever since the topic of globalization has made headlines, and ever since it has occupied so much time in academic and policy circles, there have been questions about the pros and cons of globalization. In the late 1980s, and the early 1990s, many were quite optimistic about what globalization would bring in terms of economic development. As early as the late 1980s, states were pushing for economic trade liberalizations. Much of this was through what was known as the Washington Consensus. Furthermore, in the mid nineties, states came together to form the World Trade Organization, which was seen to further aid in terms of free trade and economic liberalization (Stiglitz). However, with the WTO meeting in Seattle in attempts to further advance economic free trade agreements, the WTO was met with strong resistance by protesters in Seattle, which is seen as one of the most important anti-globalization movements to date.

General Criticisms of Globalization

There are many who have found a number of criticisms of globalization. For example, Stiglitz (2007) summarizes some of the concerns by those worried about the rise of globalization. He points to a handful of criticisms:

The rules of the game that govern globalization are unfair, specifically designed to benefit the advanced industrial countries. In fact, some recent changes are so unfair that they have made some of the poorest countries actually worse off.

Globalization advances material values over other values, such as a concern for the environment or for life itself.

The way globalization has been managed has taken away much of the developing countries' sovereignty, and their ability to make decisions themselves in key areas that affect their citizens' well-being. In this sense, it has undermined democracy.

While the advocates of globalization have claimed that everyone will benefit economically, there is plenty of evidence from both developing and developed countries that there are many losers in both.

Perhaps most important, the economic system that has been pressed upon the developing countries-in some cases essentially forced upon them-is inappropriate and often grossly damaging. Globalization should not mean the Americanization of their economic policy or culture, but often it does-and that has caused resentment (9).

We shall examine the pros and cons of globalization within the context of these different issues.

Globalization and Equality

Supporters and critics of globalization have debated whether globalization fosters greater equality, or whether globalization furthers economic and social inequalities. Advocates of globalization argue that globalization offers a number of opportunities for individuals. Osland (2003: 141) lays out a number of points that proponents of globalization make: These points are quoted below:

Income increased globally for both rich and poor, decreasing poverty.

Increased wages for the well educated

Increased wages for technologically skilled

Improved economic conditions in countries and regions that successfully compete in the global economy

Rich have become richer

Increased access to more goods

Reduced prices due to competition with local monopolies

Increased food supply in some countries

Globalization and Inequality: Poverty

One of the criticisms outlined above focuses on the issues of globalization and poverty. With regards to the debate on the pros and cons of globalization, the critics of globalization have emphasized the negative effects of economic liberalization with relation to poverty figures. They argue that globalization has not helped people out of poverty, but has actually moved more people into poverty. As Stiglitz (2007) explains, minus cases such as China, poverty in the developing world has increased over the past two decades. Some 40 percent of the world's 6.5 billion people live in poverty (a number that is up 36 percent from 1981), a sixth-877 million-live in extreme poverty (3 percent more than 1981). The worst failure is Africa, where the percentage of the population living in extreme poverty has increased from 41.6 percent in 1981 to 46.9 percent in 2001. Given its increasing population, this means that the number of people living in extreme poverty has almost doubled, from 164 million to 316 million" (11).

Osland (2003), in reviewing the literature, states that there are some who have benefited from globalization, whereas other have suffered during globalization. However, what seems to be rather consistent is this overall inequality gaps have grown. There are widening gaps between economically rich states and economically poor states. This can be seen by per capita income, the percentage of GDP economically rich states have compared to economically poor states, and overall ownership of wealth. In addition, income for the poorest in the world has continued to decline, with income for the rich rising. Thus, some critics "object to globalization that makes some elite countries and groups much better off than others, even if all gain on average" (Elliot, Kar, & Richardson, 2002: 21-22).

However, we find growing economic disparities not only between countries, but within countries as well. One needs to look no further than the economic discrepancies within the United States. From the 1970s to the early 2000s, for example, the United States has witnessed a decline in the economic worth of hourly pay, all the while seeing a vast increase in CEO pay (Osland, 2003). Furthermore, the richest one percent continue to own more and more of the total wealth in the country (Osland, 2003).

Thus, with the rise of globalization, as Osland (2003) explains, "it does seem safe to conclude that it has produced winners and losers on both the individual and country levels. The increasing gap between the haves and the have-nots raises the question of fairness" (140).

Globalization and Labor

Along with questions about the effects of globalization on poverty, there are also numerous questions about globalization as it relates to labor rights. For those who believe that globalization benefits labor, they argue that there are new opportunities for those who may not have had access to certain types of employment beforehand, that globalization has allowed businesses to invest in countries that would benefit form the need to hire individuals. Furthermore, not only will there be more jobs, but those who are working will also benefits because of more access to education and job training, which can provide them with a larger skill set (Osland, 2003).

However, there are many who are quite concerned about globalization, much of it related to their job security. With globalization, companies are not able to compete for labor; were a company might once have been limited to workers within one country (which could have affected supply), now a company could move their factories and business to another country with far more supply of labor, which will be a lowering of demand in labor. Thus, those who are looking for security in their employment may feel worried about losing their jobs to someone elsewhere. Globalization has allowed business to be international. This includes the ability to hire abroad. Furthermore, not only are people losing jobs, but those that are losing them now have to often work in fields that might not be what they preferred (Daly, 1996, in Osland, 2003).

Many others point to human rights violations as related to to labor as a fundamental problem with how businesses operate in this globalizing world. For example, "[t]he labor movement and human rights advocates argue that globalization has had a negative effect on labor standards and that it threatens hard-won improvements in labor conditions. They warn about the race to the bottom, which assumes that competition will drive labor standards (and also environmental standards) to the lowest common denominator" (141). The race to the bottom is this idea that businesses (multinational corporations) will look for the cheapest places to conduct businesses, even if it means that human rights will not be protected. And by them looking to invest their capital-something possibly hard to come by in the global south state vying for their business-these leaders of the economically developing states will attempt to establish attractive options for the MNC so that they will invest in their state. This might take the form of significant tax reductions , or weak environmental or human rights standards, with the hopes that this would help the MNC decide to choose their country. However, other states are also offering incentives, and in order to keep up with the offers of the other states, will in turn make similar offers. With multiple states doing this, there is a "race to the bottom" in terms of how rights will be affected; states will offer great autonomy for the MNCs, and little interference, which may include doing little when an MNC violates human rights or harms the environment.

Thus, when states ignore human rights, and MNCs invest in countries with little human rights standards, then citizens lose. They do not have high wages, they do not have realistic job security, and they do not have government protections against any MNC actions. Thus, many have reported MNCs that have abused human rights by not providing adequate wages to their employees. Or, in other cases, the work conditions may not be safe for employment. Other times, there have been reports of individuals threatened when wanting to form a union. In addition, at times, people have been made to work long hours, and sometimes without breaks. As Osland (2003) explains,

"The form of ownership and the transitory nature of many overseas factories have resulted in a different form of social contract between employer and employee. The reliance of some multinational enterprises non local subcontractors who run their factories means that workers do not "belong" to the company. This arms-length relationship facilitates the closure of factories when labor costs rise prohibitively and another country becomes more attractive. In these cases, the social contract between employer and employee is limited to the simplest, most expedient transaction-pay for work, which is a stripped-down version of the social contract that exists in most developed countries (albeit with the exception of temporary workers). There have been instances of unscrupulous foreign factory operators in export processing zones who have closed down and fled the country without any warning or termination pay to employees" (142).

These are not straw man arguments, but rather, activists says have been common occurrences throughout the history of MNC investments (in factories, for example) abroad.

Globalization and Governments

Scholars have debated the effect of globalization on governments. The question people are asking has to do with the level of power that states have, particularly on economic issues, and particularly as it relates to multinational corporations (Osland, 2003), who, some believe have rising power in the international relations system.

Advocates for globalization as it relates to governments argue that the rise of technologies, and the increase in interconnectedness is great for the individual in the international system, even if it is bad for the government. The individual not has the power to bring about political change. Thus, in authoritarian states, the individual can organize outside of the view of the government, and thus, work on democratic reform. This was recently evident with the 2010-2011 Arab uprisings, where individuals used social media to help organize protests against the state. However, on the other hand, that same power can be used for evil. Individuals have the ability to commit crimes with the very same technology.

There are also debates on what it does to the functioning ability of the state. For example, [o]n the positive side of the ledger, for some governments, globalization has resulted in expanded infrastructure, more jobs, and more economic development for their citizenry. Certain countries have benefited from the transfer of modern, more effective management techniques to their business sector. Furthermore, some observers believe that the increased interdependence of trading and investment partners will draw countries closer together and serve as a deterrent against war (Harris & Goodwin, 1995; Tyson, 1999, in Osland, 2003: 143).

However, many believe that states have also had to give into the multinational corporations, thus weakening their political and economic sovereignty. This can be in many forms. States might be open and influenced by MNC lobbyists for example, who want to push a particular agenda within that government. In addition, they may also put pressure on states to ignore human rights in the name of their own economic interests (Soros, 2002, in Osland, 2003). Furthermore, many have also been critical of the ability of MNCs to influence other economic policies of states. Many have been critical of international organizations such as the World Bank, International Monetary Fund and the World Trade Organization (Osland, 2003).

Globalization and Culture

Another issue within globalization has been its effect on different communities and cultures throughout the world (Osland, 2003). Advocates of globalization point to the increase in information, which in turn has become available to billions of people throughout the world. Without globalization, it would have been difficult to find out about certain ideas or texts, for example. Now, with globalization, individuals are able to access movies, music, and sports from different countries and cultures. Furthermore, globalization has allowed collaborations at high levels; people from around the world can connect to create art, or to start up an organization, for example.

However, the flip side to this is that some worry that globalization will lead to a dying out of many cultures and languages, at the expense of a few top influencers. As the world becomes more global, and as culture is shared throughout the world, the question is how will this affect other cultures, particularly if they do not have as much influence, such as U.S. culture, for example. Thera are concerns that languages will not longer be used, and that we will move towards a unified type of culture, which will look less like a mix of various cultures, but rather, a dominance of one, or a few cultures.

Globalization and the Environment

Even the discussion on globalization and the environment has produced arguments in favor of globalization (i.e. the benefits of globalization with regards to environmental practices), as well as a great deal of criticisms. In fact, this seems to be on one of the often cited points that critics of globalization bring up; they feel that globalization has led various actors (most MNCs to) negatively alter the environment. The advocates of globalization with regards to the environment point to certain strategic production choices, as evidence that globalization can help environmental issues. For example, because globalization has now structured the economic system in which businesses have to compete not only domestically, but internationally, there are those that argue that it forces actors to be more selective in what they produce; they will focus on that in which they have a comparative advantage (Osland, 2003), since it will not be in their economic interests to devote resources to other products, which may be better produced elsewhere. Furthermore, it has also been pointed out that international law has developed greatly on the issue of the environment, and this can at least in part be contributed to political globalization; states have a platform (at the United Nations, for example), to work on these issues. There have been a number of legal and political advancements on the issue of environmental rights in the past decades. Plus, with increased technologies, actors are better able observe any environmental issues, and can respond more effectively (Osland, 2003).

However, critics of globalization (or how actors behave in a more globalized system) argue that one of the primary issues that is negatively impacted as a result of globalization is the environment. As Stiglitz (2007) states, "[a]failure of environmental stability poses an even greater danger for the world in the long run...Unless we less environmental damage, conserve on our energy and other natural resources, and attempt to slow global warming, disaster lies ahead. Global warming has become a true challenge of globalization...There will be grave problems ahead if everybody emits greenhouse gases as the rate at which Americans have been doing so" (17). He goes on to say that "[t]he good news is that this is,by now, almost universally recognized, except in some quarters in Washington; but the adjustments in lifestyles will not be easy" (17).

Global Feminism and Globalization

Some scholars have also examined globalization from the perspective of feminism. For example, many have looked at the role of women's rights organizations, as well as female labor in the international economic global system. There have been arguments that women have been largely ignored in a lot of the globalized capitalist process, but also that women's rights organizations have formed, and are very active in challenging gender biases (Moghadam, 2015).

In fact, women's rights groups are at the forefront of bringing about positive change with regards to globalization and the international economic system. For example, as Moghadam (2015) writes, "Organized and mobilized women-locally, nationally, and transnationally-are raising questions about social and gender arrangements and making demands on employers, governments, and patriarchal movements, and international financial institutions" (104). And when one looks at the international landscape, it is quite evident that women's rights groups have done a great deal to advance human rights and other related issues. For example, they have publicized rights abuses against women in many countries around the world. Furthermore, they also successes in putting pressure on international organizations such as the World Bank (and other international organizations) to include more attention to issues of gender within the economic work of the organization (Moghadam, 2015), and have succeeded in having such organizations (like the United Nations, among others) to focus on the work such groups are doing (Moghadam, 2015).

Overall, within the space of globalization, "women's organizations have become major non state political actors on the global, regional, and national scene. They are in a dynamic relationship with states, the media, international governmental organizations, and other transnational social movements (TSMOs) and transnational activist networks (TANs). They use the global, intergovernmental arena and the transnational public sphere to accomplish national priorities in the areas of women's human rights...and economic policies..., as well as to influence international norms and conventions" (Moghadam, 2015: 106).

Critics of Globalization

As mentioned above, there have been many critics of globalization. However, according to Elliot, Kar, & Richardson (2002), there various categories that can help when trying to understand who the actors against globalization are.

These individuals agree that one of the problems with globalization is their belief that "the process by which globalization's rules are being written and implemented is undermining democracy, at both the national and international levels" (2). These scholars argue that there are a few areas of coalescence with regards to activists speaking out on issues of globalization. They are those criticizing MNCs' disregard for the environment, for human rights (which include labor rights discussed above), and overall inequality, focused (although not solely limited to) global South states (2).

In order to try to work on discussing and addressing critics' concerns, Ellior, Kar, & Richardson (2002) write that "[o]ne step in moving beyond the dialogue of the deaf is to orient the critics' concerns in terms of potential market failures that economic analysis already recognizes. A second is to recognize that not all of the critics are "anti-globalization." Some are, but others are not . With the end of the Cold War, some see anti-globalization as a new front in the long-running battle between socialism and capitalism. But other critics, including many with a religious orientation, are strongly internationalist and want to see globalization succeed, albeit under different rules" (3).

As mentioned, there are many ways in which activists work on issues of globalization. Some can be activists who are looking to confront MNCs or state actors more directly, such as protesting in front of govnerment or MNC buildings, or taking to the streets, such as was the case in Seattle in 1999. Others can work on improving human rights and environmental issues though the joining of non-governmental organization (NGOs). Here, they can team up with other individuals, and can promote their cause, donate finances, spread the word about initiatives, organize speaking events, or donate financially to their respective causes.

Others may carry out research (Elliot, Kar, & Richardson, 2002). This can be done through policy papers, academic works (and presentations in academic conferences), or other small or large scale research projects. Research can be quantitative or qualitative in nature, and thus, some collect and analyze statistics, whereas others focus on interviews with political leaders, corporations (if possible), or those who have had their human rights violated.

References

Champlin, D. & Olso, P. (1999). The impact of globalization on U.S. labor markets: redefining the debate. Journal of Economic Issues, Vol. 32, No. 2, pages 443-451.

Daly, H. (1996). Beyond Growth. Boston, MA. Beacon.

Elliot, K.A., Kar, D. & Richardson, D. (2002). Assessing Globalization's Critics: Talkers Are No Good Doers? Available Online: http://www.iie.com/publications/wp/02-5.pdf

Harris, J.M. & Goodwin, N.R. (1995). A Survey of Ecological Economics. Washington, D.C. Island Press.

Moghadam, V. (2015). Chapter 7, The Specter That Haunts the Global Economy?, pages 103-110, in Steger, M. The Global Studies Reader. New York, New York. Oxford University Press.

Osland, J.S. (2003). Broadening the Debate: The Pros and Cons of Globalization. Journal of Management Inquiry, June 2003, No. 2, 2, pages 137-154.

Soros, G. (2002). George Soros on Globalization. New York, Public Affairs.

Tyson, D.L. (1999). Why the US should welcome China to the WTO. Business Week, 30. May 31st, 1999.

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In this article, we shall examine the pros and cons of globalization. Globalization, or the increased interactions between individuals with regards to issues such as trade and communications, has been a strongly debated issue in international relations. We will lay out and evaluate the different arguments in the debate on globalization.

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This article talks about how globalization hurts economies at an early stage of development, because free makes all countries compete on the same level which people say is not fair, because it is harder for less developed countries to compete with more developed ones. Also globalization can hurt the consumer, because when the higher class puts their money in tax havens it makes it so governments have to raise taxes for pooper people. Finally globalization hurts the cultures of countries, because to compete with other ones the might have to develop some of their cultures instead of continuing their own.

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Globalization is one of the 21 st century's most important political topics. You might have heard the term globalization used before, whether in an economics lecture or in a political debate.

As the world grows more connected through the Internet and greater international trade, globalization is becoming more important - and more controversial - than at any other point in history.

In this blog post, we look at the benefits, the downsides, and the interesting realities of globalization. Whether you're an economics expert or someone with an interest in the future of the world, you'll gain a well-rounded understanding of the pros and cons of globalization.

If you'd like to gain a deeper understanding of economics and globalization, enroll in our course, Economics Without Boundaries with David McWilliams.

What is globalization?

What exactly is globalization? Simply put, globalization is the process of changing to an integrated world from an isolated one. Globalization can be summed up as a long-term change towards greater international cooperation in economics, politics, idea, cultural values, and the exchange of knowledge.

Globalization has largely been made possible by advances in technology, particularly the Internet. As the world grows more connected, people in all nations achieve a far greater level of interdependence in activities such as trade, communications, travel, and political policy.

It's easy to assume that globalization is an entirely modern phenomenon driven by inventions like the telegraph or the Internet. In many ways, globalization has been taking place for centuries.

From the Silk Road, which spanned from Europe all the way to East Asia, to the invention of steamships and railroads, humans have engaged in cultural exchange and international trade for centuries.

In the 20 th century, this international exchange and trade was made far easier by the invention of airlines and road vehicles. What was once a slow process became a far simpler one. In the late 20 th century, the invention of digital communications tools like the Internet made modern globalization a reality.

While globalization covers a wide range of topics, ranging from cultural values and information to economics and international trade, most modern discussion of the pros and cons of globalization is focused on economics and culture.

What are the core features of globalization?

From an economic perspective, globalization has truly changed the world. The core features of globalization are increased free trade between nations, easier movement of capital between borders, and a massive increase in foreign investment.

This has resulted in growth for both small businesses and multinational companies, which can now access new markets across the world. It's also resulted in increased transport and communication between countries and continents.

What are the key benefits of globalization?

There are many pros and cons of globalization, ranging from economic benefits to a freer, more equal labor market. Let's start by looking at the most discussed benefit of globalization: free trade.

Free trade reduces the barriers that once stood between nations trading freely with one another. When companies in different nations don't face any barriers to trade in the form of import or export restrictions, they can engage in free trade.

An example of a free trade agreement is the North American Free Trade Agreement (NAFTA), which allows Mexico, Canada, and the United States to exchange products and services without significant import and export restrictions.

Free trade has numerous benefits for economies and consumers. Consumer enjoy a greater choice of goods and services, since foreign companies can easily offer their products for sale. They also benefit from lower overall prices for goods, as a greater variety of goods for sale increases competition and drives prices down.

Manufacturers in countries with free trade agreements also benefit from free trade in the from of a larger export market. Rather than being able to export to just a few countries, exporters can now sell their goods to wholesalers and consumers in a large variety of counties.

Free trade also allows nations and economies to specialize, producing higher quality goods at better prices. If a country, for example, has large oil reserves but little land that's suitable for farming, it can focus on oil production while importing fresh food from abroad.

Another key benefit of globalization is the free movement of labor. In a globalized world, workers can more easily move from one country to another to market their skills to employers and contribute to the economy.

In many cases, free movement of labor allows economies to fix 'gaps' that exist in their labor markets. For example, the United Kingdom has hired nurses from India to fill positions in its public hospitals that were previously empty due to local labor shortages.

Companies can also hire workers in foreign countries to work for them using online tools and telecommunications. Learn more about the theory and decisions behind this in our Business Process Outsourcing course.

The benefits of free movement of labor also work in the other direction. If a country has too few jobs and too many workers, people can easily move to markets in which the job market is better. An excellent example of free movement between countries can be seen in the European Union, particularly the Schengen Area.

What are the downsides of globalization?

While many features of globalization have been beneficial, others have resulted in problems for certain economies and countries. Each of the benefits of globalization, from free trade to the free movement of labor, can also be a downside for specific countries and economies.

One of the biggest downsides of globalization is the harm it can cause to economies at an early stage of development. Free trade forces all countries to compete using an even playing field, which critics claim puts smaller, less developed countries behind their more developed counterparts.

Some economists believe that free trade is only possible if industries in developing countries are allowed to grow under a certain level of economic protection. This is known as the Paradox of Free Trade, and it is a core argument among economists.

Another downside of globalization is the phenomenon known as ' labor drain.' Since globalization allows workers to easily move from one country to another, countries with limited job opportunities often find it difficult to encourage skilled workers to stay in their countries.

You can learn more about how labor drain relates to the current economic climate in our course, Capitalism in Crisis: The Global Economic Crisis Explained.

This is particularly problematic in countries with extensive publicly-funded higher education systems. After receiving training in their home countries, many people emigrate and spend their professional career in a more lucrative economy at the expense of their home country.

Globalization can also have a significant negative impact on taxation. Since many companies are able to trade with one country while being based in another, large corporations often exploit tax havens such as Luxembourg, Switzerland, and Hong Kong to avoid paying taxes in the countries where they generate their profits.

This can often hurt consumers in the form of higher taxes on consumer products and property. Since countries often have little control over where big companies register to avoid tax, they are often forced to raise other taxes in order to make up for lost revenues due to corporate tax avoidance.

Many economists and environmentalists have criticized globalization due to its environmental impact. Learn about the environmental effects of globalization in Energy Economics and the Environment.

Finally, globalization has had a cultural impact on many countries that have been subject to large-scale immigration. Many critics of globalization feel that the free movement of labor has resulted in the weakening of specific cultures in favor of greater economic and cultural hegemony.

Understanding economics as a whole

Globalization is an interesting issue that's drawn many people to the study of trade and economics. Like many other economic processes, globalization has both major advantages and disadvantages for the world as a whole.

At the core of the globalization argument is the concept of the invisible hand of the market, as conceived by Adam Smith. As nations become more connected, markets will self-regulate to maximize their benefits and minimize their downsides.

Learn more about the basic principles of economics in our course, Micro & Macro Economics.

An example of this can be seen in the United States. Because of globalization, most consumers can purchase products ranging from cars to televisions at lower prices than at any point in history. This is because these products are no longer produced in the United States, but in other countries with lower labor costs.

The benefit of this change is lower prices for consumer goods. However, a downside of this development is a reduction in the number of manufacturing jobs available in the United States, as production is outsourced to countries with greater economies of scale and more affordable labor.

This is one of the many pros and cons of globalization, and it illustrates a key value of economics: any decision which has positive effects can also have negative effects.

Learn more about economics and globalization

Would you like to learn more about how the world's economy functions? Economic developments can have a huge effect on global politics and culture, and learning the theory behind modern economics is a great way to stay informed.

Enroll in our course, The Geography of Globalization, to learn more about how the shift towards a more global economy is changing the world. You may also want to learn about how globalization affects teamwork in international organizations.

Globalization is at the center of modern economics and politics. Stay informed of its positive and negative effects and you'll be a more informed, capable, and politically astute citizen of the world.

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Pros and Cons of Globalization: Controversy and Discussion

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Globalization is one of the 21 st century's most important political topics. You might have heard the term globalization used before, whether in an economics lecture or in a political debate. As the world grows more connected through the Internet and greater international trade, globalization is becoming more important - and more controversial - than at any other point in history.

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This video mostly talks about how globalization affects technology and how technology affects people in a good way. This video talks about how technology is good for people in poor countries. For example giving people access to poor in poor countries it can help them by giving them access to bank and makes it easier for them to give money to one another. It also makes it easier for children in these countries to get an education. It also helps farmers get information and know what the prices are for the things that they are producing. It also they can get access to phone towers which cost less and are easier to put up than phone lines

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Globalization and Trade and Poverty: Crash Course Economics #16

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This video talk about the pros of globalization like increased competition when there is more competition the prices of goods is lower which is better for the consumer. Also it makes it so more people are employed, because the jobs will go to other countries. Globalization also makes it countries are more connected with each other, because it forms closer relationships with countries. Also since countries are more connected they can also innovate with each other and create technology that helps the countries and the world as a whole. It is also easier for countries to trade with one another, because with globalization they get things like internet and technology that help them trade.

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This video talks about how people are being outsourced around the world so they are being lost or people are afraid of there job being lost so they will work less efficiently. Also it countries with less restrictions on cheap or child labor countries are more likely to go and hire people inside of that country. When companies want to produce things they go to countries to countries with relaxed environmental regulations so companies go there and don’t worry about the environment and then they hurt the environment by dumping there pollutes anywhere. Globalization is also more likely to spread diseases to other countries, because it is now much easier to travel to countries with viruses and diseases.

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This video explores all of the negative consequences which have come as a result of modern globalization.

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This video talk about the benefits of globalization one is outsourcing which means that people can hire employees for less money. Also, because of globalization there is lower prices, because when more companies open up in new countries it encourages competition which drives prices down. There is also more productivity with globalization which means that countries can focus on what they are best at producing like the united states can produce a lot of corn. Also globalization leads to innovation, with more communication between countries it is easier for them to share ideas and make the world a better place.

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In this video he talks about how the globalization can affect the the health of the people in the world. For example it globalization leads to more people producing and using automobiles so this contributes to climate change. Also when people produce these automobiles they also use natural resources so they are harming the ecosystems that they take the natural resources from. Also when we globalize more we use up more water and fossil fuels which also contributes to climate change. When countries expand they take then take the resources from that land which helps the economy, but doesn’t help the environment.

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Globalization II   Good or Bad Crash Course World History 42

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In this article it talks about the negative aspects of outsourcing like it takes jobs away from one of the other countries. The countries culture dissipate, because when they interact with more countries they will adapt what the other country does. Globalization makes it easier for diseases to spread and animals that have no natural predators can take over the area. It also that there is little international regulation so the people globalizing usually have little regard for the environment and they won't get in much trouble. It gives countries that need money loans, but it gives them standards that they won’t be able to meet, because they are not as developed as western countries.

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If you look at the tag on your shirt, chances are you would see that it was made in a country other than the one in which you sit right now. What's more, before it reached your wardrobe, this shirt could have very well been made with Chinese cotton sewed by Thai hands, shipped across the Pacific on a French freighter crewed by Spaniards to a Los Angeles harbor. This international exchange is just one example of globalization, a process that has everything to do with geography.

Globalization and Its Characteristics

Globalization is the process of increased interconnectedness among countries most notably in the areas of economics, politics, and culture. McDonald's in Japan, French films being played in Minneapolis, and the United Nations are all representations of globalization.

Improved Technology in Transportation and Telecommunications

What makes globalization possible is the ever-increasing capacity for and efficiency of how people and things move and communicate. In years past, people across the globe did not have the ability to communicate and could not interact without difficulty. Nowadays, a phone, instant message, fax, or video conference call can easily be used to connect people throughout the world. Additionally, anyone with the funds can book a plane flight and show up halfway across the world in a matter of hours. In short, the "friction of distance" is lessened, and the world begins to metaphorically shrink.

Movement of People and Capital

A general increase in awareness, opportunity, and transportation technology has allowed for people to move about the world in search of a new home, a new job, or to flee a place of danger. Most migration takes place within or between developing countries, possibly because of lower standards of living and lower wages push individuals to places with a greater chance for economic success.

Additionally, capital (money) is being moved globally with the ease of electronic transference and a rise in perceived investment opportunities. Developing countries are a popular place for investors to place their capital because of the enormous room for growth.

Diffusion of Knowledge

The word 'diffusion' simply means to spread out, and that is exactly what any new found knowledge does. When a new invention or way of doing something pops up, it does not stay secret for long. A good example of this is the appearance of automotive farming machines in Southeast Asia, an area long home to manual agricultural labor.

Non-Governmental Organizations (NGOs) and Multinational Corporations

As global awareness of certain issues has risen, so too has the number of organizations that aim to deal with them. So-called non-governmental organizations bring together people unaffiliated with the government and can be nationally or globally focused. Many international NGOs deal with issues that do not pay attention to borders (such as global climate change, energy use, or child labor regulations). Examples of NGOs include Amnesty International or Doctors Without Borders.

As countries are connected to the rest of the world (through increased communication and transportation) they immediately form what a business would call a market.

What this means is that a particular population represents more people to buy a particular product or service. As more and more markets are opening up, business people from around the globe are coming together to form multinational corporations in order to access these new markets. Another reason that businesses are going global is that some jobs can be done by foreign workers at a much cheaper cost than domestic workers. This is referred to as outsourcing.

At its core globalization is an easing of borders, making them less important as countries become dependent on each other to thrive. Some scholars claim that governments are becoming less influential in the face of an increasingly economic world. Others contest this, insisting that governments are becoming more important because of the need for regulation and order in such a complex world system.

Is Globalization a Good Thing?

There is a heated debate about the true effects of globalization and if it really is such a good thing. Good or bad, though, there isn't much argument as to whether or not it is happening. Let's look at the positives and negatives of globalization, and you can decide for yourself whether or not it is the best thing for our world.

Positive Aspects of Globalization

As more money is poured into developing countries, there is a greater chance for the people in those countries to economically succeed and increase their standard of living.

Global competition encourages creativity and innovation and keeps prices for commodities/services in check.

Developing countries are able to reap the benefits of current technology without undergoing many of the growing pains associated with the development of these technologies.

Governments are able to better work together towards common goals now that there is an advantage in cooperation, an improved ability to interact and coordinate, and a global awareness of issues.

There is a greater access to foreign culture in the form of movies, music, food, clothing, and more. In short, the world has more choices.

Negative Aspects of Globalization

Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities.

Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade.

There may be a greater chance of disease spreading worldwide, as well as invasive species that could prove devastating in non-native ecosystems.

There is little international regulation, an unfortunate fact that could have dire consequences for the safety of people and the environment.

Large Western-driven organizations such as the International Monetary Fund and the World Bank make it easy for a developing country to obtain a loan. However, a Western focus is often applied to a non-Western situation, resulting in failed progress.

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What Are the Positives and Negatives of Globalization?

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If you look at the tag on your shirt, chances are you would see that it was made in a country other than the one in which you sit right now. What's more, before it reached your wardrobe, this shirt could have very well been made with Chinese cotton sewed by Thai hands, shipped across the Pacific on a French freighter crewed by Spaniards to a Los Angeles harbor.

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In this article it says that globalization helps the global economy, because when more countries decide to make companies it encourages competition which makes them produce things more efficiently and it creates more jobs. Also it spreads out global power so not one country has all the power in the world. Globalization makes it easier for people to travel to different countries so they can discover new cultures it also makes it easier for people to travel to our country. Also people become more tolerant of each other, because people can interact with them easier so we can experience their cultures first hand.

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Globalization is an economic tidal wave that is sweeping over the world. But before drawing any conclusions on how it affects the U.S. economy, consider some of the general pros and cons of globalization.