A Comprehensive Guide to Globalization

A Comprehensive Guide to Globalization

Going door-to-door in any big city and asking random people to define globalization and its effects in a "Jay Leno" style would likely provide a wide range of opinions. For what reason is this the case? Why do people have such divergent views on the subject of globalization and why do they provide such diverse definitions of the term? We shall examine the notion of globalization and its definition, as well as its advantages and disadvantages, in this essay. Examining the definition of globalization will help us begin to address these problems.

We can explain globalization in many different ways since there are many different kinds of globalization. One area we could examine is cultural globalization, which deals with the spread of certain values and ways of life around the world and how they interact with one another; another would be the evolution of communication techniques as they pertain to different parts of the world. Nevertheless, Bhagwati's "In Defense of globalization" describes economic globalization, which is what this essay will center on. Economic globalization is defined by Bhagwati as "the integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology..." Having established a basic definition of economic globalization, the next step is to examine some of the debates around the concept, draw out its benefits, and pinpoint its flaws.

For how long has it been since you last watched a news program or read an article in your newspaper that discussed the connection between globalization and issues like rising poverty or outsourcing? It would appear that this is a popular subject in today's media, spurred on by protesting teenagers, banners, and the opinions of non-governmental organizations (NGOs). Does everyone really need to be so anti-globalization? The anti-globalization movement appears to be spearheaded by two categories of individuals, as described by Bhagwati: "stake-wielders" and "stake-asserters." As a general rule, "stake-wielders" are irrational, radical radicals who believe they are fighting against globalization and who yell out arguments they don't fully comprehend. Now, stake-asserting individuals differ from protesters in that they seek to educate and teach others about globalization issues through reasoned discourse and use it to advocate their positions. To begin with, what exactly are these folks so vehemently opposed to?

The topic of whether or not globalization widens the income disparity and the number of poor people in the world comes up frequently. One possible stance on this matter is that globalization facilitates the free flow of goods and services across borders by gradually expanding free trade. Countries would be able to lift themselves out of poverty as a result of trade benefits that boost economic growth, which in turn creates more jobs, reduces unemployment, and so on. If you ask Bhagwati, "an increase in the size of the pie" is the way to go. This is achieved not by raising domestic production but rather by capitalizing on opportunities presented by global trade. Globalization is still a hotly debated topic, according to Joel J. Toppen's "Fixing Globalization—A Review Essay," and our attention would be better spent helping the world's impoverished. Even though the poor may not be the intended beneficiaries of globalization, it is arguable that it aids in lifting people out of poverty. Is there anything else that people are vehemently opposed to about globalization? Can these problems be solved by globalization, or does it require fixing?

The topic of outsourcing is one that is always in the headlines, so let's examine it. People were furious when Nike initially began sending jobs overseas. People were quite unhappy because they were losing American jobs for financial gain. To what extent, then, could this type of globalization be considered beneficial? This facet of globalization could be defended on the grounds that our economy benefits economically when companies in other nations outsource our work to them because it allows them to maximize profits. The question is, how much longer until our economy begins to feel the effects of these improvements? By paying foreign workers so little, are we not exploiting them? Even if someone assured us that outsourcing would be good for the economy and raise living standards in the long run, we wouldn't be satisfied if we were the one to lose our job in the process. No. Because we were now among the unemployed and without a job, life would be terrible for us. After all, you can't survive off your savings. Now we need to consider actual earnings when determining if we are exploiting people abroad by paying them so little.

It may appear that we are exploiting people abroad by making them work in sweatshops, but in reality, we are raising their actual wages. There will be less time for leisure and more time for work as a result of this rise in the real wage, which drives up the price of labor. People overseas work extremely long hours because of this. Their desire to work is strong. Even if this would clarify that we are not exploiting anyone, American jobs are still disappearing. We have "...actually raised the real wages of the workers," according to Bhagwati, even if employment is falling. As a result of our increased investment in education and technology, he argues, we are able to create better jobs while outsourcing lower-level ones. That too is an issue with globalization that requires addressing. Will this work? If yes, how can we accomplish it?

How can we avoid the decline of American employment while retaining the advantages of globalization, if it raises real wages abroad and boosts the economy in the long run at the expense of American workers? There must be a way to remedy this. We can all do our part to stem the tide of job loss by providing temporary financial support to individuals who have lost their jobs due to outsourcing. Even though it's not always easy to tell one kind of job loss from another, this is already being done through government programs in the United States.

Although there are some positive aspects of globalization, there are also certain problems that require correcting. Illegal immigration from developing nations to developed ones is one issue that has emerged as a direct consequence of globalization. People in economically weak nations can now more easily and profitably relocate to countries with stronger economies thanks to globalization. When considering the emigration of Mexicans to the US, this becomes much more apparent. Therefore, we should just legalize it and open our borders. Opening up borders between the United States and Mexico would have a devastating effect on our economy. People waiting along the borders would enter the United States in a mad dash. Our economic situation would deteriorate dramatically if this massive influx of people were to hit us. Our challenge now is to find a solution to the issue of illegal immigration. While a different route now accounts for the majority of illegal immigration to the United States from Mexico, that route was formerly the most common. Half of all illegal immigrants, according to Bhagwati, now enter the country legally, using visas and other programs. Their entry into the country is lawful, but their stay is not. Now that we know stopping illegal immigration is an impossible task, how can we address this issue? "Governments in the developed countries must turn to policies that will integrate migrants into their new homes in ways that will minimize the social costs and maximize the economic benefit," he says, explaining how to address the issue. Not only will this cause tensions between the US and Mexico, but it will affect other countries as well.

An aspect of globalization that could use some work will be the focus of our next examination. The ease with which money can enter and exit an economy is the root of this problem. Foreign direct investment (FDI) has been on the rise as a result of lowered regulatory hurdles prompted by international organizations like the OECD and the International Monetary Fund. The liberalization of financial and capital markets, which has put poor countries at risk without providing corresponding benefits, has had the most negative impact, says Stiglitz. Investing in foreign economies is becoming easier with the continued occurrence of globalization due to lowered barriers and fast transfers via the Internet. The "as investor sentiment changes, the money is pulled out, leaving in its wake economic devastation" might lead to massive issues. How therefore can we address this issue that develops as a result of globalization? When it comes to the flow of money, there must be a check. The potential pitfalls of globalization are shown by [capital-market liberalization]. Liberalizing capital markets is a foolish idea, according to even free-trade champion economists like Jagdish Bhagwati. A barrier to the free movement of capital into and out of a country is obviously necessary.

We have examined the definition of globalization, the good points of globalization, and the bad points of globalization in this essay. Because of this, we have a greater grasp of the issue's complexities and, with any luck, some ideas about how to improve our world through our daily actions.

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