Globalization - who does it benefit?

Question

Globalization is having a global market with the end goal resulting in free trade amongst competing countries & competitive markets. IE, say a bed was manufactured in the USA with higher wage employees, then a person in Chile couldn't afford to buy it; whereas, if that bed was made in China, then they could afford it.

Globalization is a way of leveling the free market playing field 'globally'... that is the end goal.

Now my question is and please forgive me for being crass but, "why the hell are we falling for this and why are we so willing to believe it is a good thing for us?"

I mean seriously... who gains from globalizing markets? NOT the average workers, NOT the small business person selling books in a shop down the street, NOR your local corner grocer that refuses to turn into a franchise.

Seems to me that we have ALL fallen for the 'idea' of globalization as being good for us but will it not destroy the American dream? Will it not benefit global corporations only?

Answer 1

I think you've hit on one of the main reasons for war.. to devastate already impoverished countries, so they can be rebuilt and their people put to work for slave wages.. and by being forced to trade with such countries, the developed nations are also forced to work for low wages... It's almost like it's being played on us by the super rich, as a game ... "maybe even for a dollar bet".

Answer 2

I think it's great! Are you kidding me, Walmart rocks! I love the corner market as much as the next person, but I also love the great deals I can get only because of globalization. To me, the "American Dream" is about rising up from the bottom to be at the top, at least that's what all the history books make it out to be. IF that is the case, then globalization assists people in making that journey to the top because they are able to reduce costs, invest more in the business, and become powerful. The "American Dream" is not about building a bigger and better farmers' market; it is often associated with the early large steel families and railroads.

I also don't see how anyone can argue "average workers" don't benefit from large businesses. I often live paycheck to paycheck, which I don't complain about, but I sure appreciate the fact I can get cheaper diapers and formula because of large companies. I also appreciate that these large companies create thousands of jobs, many of which are protected by unions. Despite the greed that's associated with the big businesses at the top, some does trickle down. I hate to keep using Walmart, but look what they do for every community they are in. No denying they do a lot of good.

People in other countries, when they want to come to America, it's not because they dream of opening the best taco stand this side of the Mississippi, but they know they can make money, which they can. They know that there are a lot of successful people here, and that they can be successful, and they can.

Like I said, I enjoy, and frequent the small business as much as I can, and I think we should, but the big business and globalization is not a bad thing. Look, even those people that started out as the neighborhood market, like Trader Joes, are expanding and taking advantage of the market.

After all that, I think the American Dream should be the ability to provide for your family, be content with what you have done in your life, while exercising humility and respect, giving back to society when you can.

Answer 3

More like who DOESN'T it benefit. Globalization may be the best thing to happen to PEACE in the history of the planet. Once all the economies are interdependent people will be less prone to war because to engage in it will hurt their ability to produce commercial products (because of the movement along a production possibilities curve).

Also, Globalization will help erase racism because the only color people will see is Green.

And though I see your point about the "small shop keeper" you must keep in mind that that type of business will NOT be affected by globalization because they have CHOSEN to remain small- they were not forced to remain that size because of "globalization."

On the flip side a mom and pop shop that produces something and is seeking to grow into a larger business entity might find that Globalization has alllowed them to cut costs and grow their customer base- increasing their profits and allowing them to expand and hire local employees.

As sad as it seems, many local businesses have failed in the past, not because of globalization, but because of mismanagement, corruption, etc.

We've imported coffee for years, are you going to make the claim that we should be drinking only "American" coffee? And only drink "American" grown wine? That most countries drink the wine of most other wine producing countries is an example of Globalization...and it didn't put the small "mom and pop" wineries out of business, in fact the increased demand has INCREASED the amount of wineries in this country.

Answer 4

Globalisation benefits consumers. People can buy better quality items more cheaply, leaving them with more money in their pockets to enjoy on other things.

Globalisation benefits workers in the developing world. Instead of receiving aid they can export their way out of poverty. Why can't Indians have a chance to do the same cushy work as first world computer programmers? And why should I pay the cost for a company to hire more expensive workers?

If you just think it is a case of globalisation only benefiting big business, then you would be better off questioning the governance of corporations. A better question is "Why do shareholders allow directors to give themselves huge pay packets at the expense of a company's health"

Answer 5

And stupid contracts are entered into. Did you hear about the touch screen voting computers and software manufactured in Venezuela by a company with ties to Chavez? These paperless computers are being used in 17 states plus DC. Results are transmitted to a central computer. They were a disaster during the primaries but Venezuelan consultants will be on site to be sure no further problems occur on November 7! Oh, and CHICAGO is using them!

More stupid contracts -- the Indian call centers for customer service and tech support; and the Dubai ports deal.

Answer 6

Globalizing the economy is simply the 'next step' in economic growth, especially for the United States. On top of that, it makes good security sense to allow other countries to invest into our country and us into their countries.

Let me expand on that just a little. Our domestic economy is very fluid and strong because, despite limitations placed upon it, it is still far more free to expand and develop when compared to other countries and coalitions. We like that as a general rule. The US economy grows less than 3% in two quarters, we call that a recession. A European country's economy, for example, grows 1%, they are dancing in the streets in honor of a great quarter.

Yes, the US investor sees opportunity, and companies have an obligation to the US investor to explore those opportunities. And considering at least half the US population is invested, I sure hope they get a return from responsible corporations who do explore all possible opportunities to grow.

Of course we do benefit from less expensive goods, moved our blue collar force (some argue for the better, some for the worse) into a white collar force, we broker now, instead of manufacture. American based companies are rapidly changing to meet future demands of our domestic and international economy. Two years ago I read how companies have positions for jobs they can't filled because no one is educated or properly trained to fill these positions... talk about a rapidly changing business world! They were shelling out huge dollars to get people trained just for the hope of hiring someone to do the jobs! I have to think of that as serious advancement and progress.

Opening trade with countries on a 'level playing field' developed war torn countries like Japan and Korea to name a couple. It brought them out of a devastating situation and up to speed with the modern world. Open trade with 'under developed' countries also lead to them to having the opportunity to advance quicker and safer.

Above is a win win. And on top of all that, when we allow countries to invest into our country, we given them investment opportunities that create a stable income to support their own stability as well. Countries like China have invested into our national debt and created an income for themselves... which, Ironically, creates security for the US. China is not likely to be hostile toward a country that provides them with a stable income.

I heard once, that when countries are trading goods, they never trade bullets.

So if we (consumers) gain access to less expensive good that we want, and we (investor) receive dividends from the corporation that brokered the deals, and we (the employed) are now able to fill the 'new' jobs and create the 'new' companies of the world (remember the computer boom), and we (US citizens) are more secure from potentially hostile governments. I just can't see the downfall, nor do I see how it takes from the American dream.

Answer 7

Its basically allowing more freedom among businesses to go abroad and expand their businesses. People do lose jobs, but some gain jobs. It's possible for company that is about to go bankrupt to save itself by saving cost from moving some of its operation over seas and provide more jobs at home and abroad. It's hard to say for sure 'the net effect' of globalization will be benificial to us or not. Sure it provide opportunity for big companies to make massive profits, but in some cases it will provide opportunities for small business to expand in ways they couldn't have before.

Answer 8

I think you need to do some research regarding the so called globalization. It's the monopoly of the superpowers. The least developed countries benefit nothing from it. Even the now growing countries would be affected badly. Globalization wouldn't be realized smoothly.
Free market. Yes for the super powers.

Answer 9

Race to the bottom, there are no positive by-products beside having different products from all over the world. The only ones who win are the few elite. The rest of us suffer in joblessness and see nature crumble to pieces because of their harmful factories.

Answer 10

It benefits those Corporations who maintain control of the raw materials to make the products. Take away that control and their aspirations for world dominion will become a faded dream.