The problem with globalization is when companies like AIG are so big that they can adversely affect many countries. The other problem is that the first step in globalization as seen in the US is that these companies first become super conglomerates.
This consolidates the supply of their product to one company instead of two or more. This allows them to control the market from that consolidation alone. Customers now have one choice, where before they had two or more. The consolidation also lowers thee number of people that need to be employed by the conglomerate. The supply demand curve can be manipulated by the conglomerate.
The government really didn't do us or the economy a favor when they bailed out the financial industry, and GM. They should have let these companies fail, and then reorganized them when they were in bankruptcy. So, globalization as a minor part of a company is a good things, but when it is the predominant factor then it is not, as proven by the companies that the government had to bail out in Another negative externality of Globalization is our illegal immigrant problem.
There is no way that an un-subsidized Mexican farmer can compete with the low food prices coming via the USA's highly subsidized agribusinesses.
So, in order to feed their families, many Latino farmers go to the USA. Work as landscapers or farm laborers.
And send a portion of their income back home. Turns out the "Free Markets" work well it you're wealthy. Or are a wealthy nation. Not so much for the poor. This is a very simple example of the dangers of a unified economic system and the cons definitely outweigh the pros.
I was nearly swayed by the pros, but after looking at the cons, it brought to mind that in a capitalistic environment, or even a political one, the leader sets the pace and lifts up everyone else in its wake. There are certainly negative aspects to allowing successful capitalistic entities autonomy, but the alternative makes it necessary for a single entity to control the entire economic landscape.
This is much worse than having a corporate entity control a portion of the market because in true capitalism, another will rise to fill the gaps that established and failing corporations and businesses create. Thankfully Obama saved us from that freedom when he bailed everyone out, which is why the world didn't collapse and we have no new car manufacturers to fill the gap GM would have created. There is much more going on behind the scenes than we are privy to, this problem will never go away and globalization will mature into adulthood.
One main driver for globalization is that things are not equally distributed on this planet.
Otherwise there would be not need to go global, everything could be kept local, there would be no benefit. But the world is different. In the middle ages herbs and precious goods were not produced or harvested in the Bagdad of "Thousend and one night", so it was to the individual knowledge and courage of traders to go to remote places and do trade. Marco Polo set out to Asia with pretty much the same task.
In the colonial times product differences in this world were exploited by economies with superior logistic and organizational means, military power being one of those means. Today there is no more individual, secret knowledge of trading secrets.
Modern communication and internet have done their thing. It is no more only natural resources on the global market, but also manufactured goods.
Sending jobs overseas is one of the elements that is destroying our middle class in the US. Very interesting article. Other product and company names shown may be trademarks of their respective owners. HubPages and Hubbers authors may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
HubPages Inc, a part of Maven Inc. As a user in the EEA, your approval is needed on a few things. To provide a better website experience, soapboxie. Please choose which areas of our service you consent to our doing so. Paul Goodman more. What is Globalization? Pros of Globalization Productivity grows in countries that open up their markets and integrate with outside economies.
Rich countries gain access to emerging economies. Poor countries gain access to wealthy economies where they can sell their goods and services. Lesser Developed Nations benefit from the increase in investment from foreign countries both financially and through jobs. Upcoming SlideShare.
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Science Fiction Sports Medicine Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty. Globalization is usually universal and unstoppable, but the demerits can be regulated and checked. Transnationalization, which in essence is an exchange between the countries of the goods, which in one country are in abundance, and in another there is a lack of those goods. Religious Studies
This article offers a solid overview of how globalization has increased income in certain countries through industrialization and trade. While the author, Nigel Hogan, recognizes that there are issues in wealth equality for different countries, he puts up a sound argument backed by strong sources that globalization can be seen as a force of economic good.
Hogan, Nigel. E-International Relations, 9 June The article is organized into concise paragraphs that break down the benefits and problems associated with globalization and the world market, and Mourdoukoutas also projects what happens when the issues with globalization become prevalent. Mourdoukoutas, Panos.
Financial specialist, Lisa Smith, takes an informative approach to how globalization affects different social classes in both host and outsource countries.
There are also links to other articles that deal with similar topics. Smith, Lisa. Investopedia, LLC. This scholarly article does a great job of scrutinizing both sides of the globalization argument. It analyzes and makes strong conclusions about data, particularly regarding the supposed rise and fall of world poverty rates. Wade, Robert Hunter. Wells provides a thorough introduction to globalization that is purely informative but has useful information for either side of the argument.
Wells, Gary J. Cornell U. ILR School, 1 May He also uses many useful sources that you may want to explore. Ocampo, Jose Antonio. The Berkeley Electronic Press. Foreign Affairs contributor, Michael Spence, covers how integrating markets negatively affects U. While this article is useful for your stance against globalization, it provides a fair assessment of the issue as well.
Spence also considers measures that the U. Spence, Michael. Council on Foreign Relations, Inc.