The Pros and Cons of Globalization
To fully understand globalization one must look at its definition first.
“Globalization simply means freedom of movement for goods and people, and it is hard to be violently hostile to that. But behind this fight lies an older and more fundamental struggle-against economic liberalization, and against the chief representative thereof, which is the United States.” (Revel)
This term has become a common word within the last few decades. Although the term is a new one, the concept has been around for a while. This is a coming event and some people are looking forward to the coming events. Others fear and protest away from it. Some even see it as a defining point soon to come to change our lives. “The restructuring of our political and economic life due to globalization may be as significant a process as the industrial revolution.” (Danaher) The next industrial revolution is a big shoe to fill. But a globalized economy would definitely make for big and possibly better changes.
The debates are strong and fierce for and against globalization. To take a look closer at this, we view the pros and cons of globalization itself. According to an April 200 issue of Business Week these are the most common Pros and Cons.
Pros
– Viewing both the Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster.
– Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth.
– An open economy spurs innovation with fresh ideas from abroad.
– Export jobs often pay more than other jobs.
– Unfettered capital flows give the U.S. access to foreign investment and keep interest rates low. (Baker)
The Pros for globalization show that prices will be kept at one set price and that money will be quickly made by all. That help with foreign countries could also speed up technology as well. Technology could help the underdeveloped countries in the long run, and help everyone overall economically.
Cons
– Millions of Americans have lost jobs due to imports or production shifts abroad. Most find new jobs – that pay less.
– Millions of others fear losing their jobs, especially at those companies operating under competitive pressure.
– Workers face pay-cut demands from employers, which often threaten to export jobs.
– Service and white-collar jobs are increasingly vulnerable to operations moving offshore.
– U.S. employees can lose their comparative advantage when companies build advanced factories in low-wage countries, making them as productive as those at home. (Baker)
The Con list shows that the concerns are that smaller businesses will be put out of business by larger ones. Also stating that only the white-collar or richer people will be making a benefit in the changes.
Both pro and cons list make good points and only time will tell to see which ones will be found to be correct. But this does not stop either side from moving forward and fighting for their cause. Especially the anti-globalist whom are fighting against this transformation towards globalization.
The Anti-globalist groups’ stand hard against the changes in their countries to make sure globalization does not happen. Starting in the early days of the 1970’s and of the simple protests. “These protests often featured an Uncle Sam in a Stars-and-Stripes costume as their supreme scapegoat.” The anti -groups seem to think the United States represented the ultimate view of capitalism, one of their biggest fears. But the simple protests have stopped and as more time progresses and more things are changing, their acts have become more violent.
“Today’s anti-globalists are much more than false prophets. Their violence has gone far beyond legitimate protest into real savagery. They have killed people through charming acts like bombing McDonald’s restaurants. In Seattle, Nice, Genoa, and other cities, rioters destroyed millions of dollars worth of property and attacked officials and police. Anti-globalists have tried to replace democracy with despotism of the mob, advancing the brutal proposition that street demonstrators are more legitimate than elected governments. Wherever they have been active, their goal has been to prevent elected heads of state or appointed officials of international organizations from meeting. Like other totalitarians, they treat the mere __expression of ideas contrary to their slogans as a crime.” (Revel) Their violent protests have only but a damper into the production pushing forward globalization.
The biggest fear of the anti-globalist is capitalism taking over. “The simplistic article of Marxist faith that capitalism is absolute evil, and that it is incarnated in and directed” (Revel) America is often seen as something most countries do not want to achieve. The anti-globalists want to dominate and destroy the ways of the United States. “The anti-globalist want to destroy: liberal democracy and free-market economics.” (Revel) They want to continue on with their old ways of living, despite its conditions.
The anti-globalist believe globalization will make the poor even poorer and the rich even more rich. Their fear is that this will be caused by a major loss of jobs due to the competitive nature the global factor will make and to lower paying countries getting their jobs. The fear of little nations being completely ruled and dominated by the more industrial nations such as the United States, Russia, and Japan, is also a fear they have.
But many argue that the anti-globalist have no facts to prove their points. “The anti-globalist have no ambition to advance a program by democratic means, for the simple reason that they don’t have a program, or coherent ideas, or facts on their side. So instead they beat relentlessly on the archaic anti-capitalist and anti-American drum.” (Revel) They are often seen as more anti-American then anti-globalization.
But besides the fact that the anti-globalist seem like a group of rebels or just anti-Americans, their points are practical and idealistic. In their eyes, globalization stands for capitalism, job loss, and the rich only becoming more in power. This is a probably outcome for globalization.
On the other side is a group of people who only have high hopes for the future. They see money to be made by all and are fighting to get the ball rolling. The pro globalization is a huge group that is working to get their facts out. According to the International Camber of Commerce. “Countries that have successfully integrated into the global trading system are shown to enjoy faster growth, better living standards, easier access to capital and technology, higher productivity and lower prices than countries with closed economies.” (Cattaui) The pro-globalist feel that their way is the way of the future. Their finding shows nothing but positive reactions for globalization. They also feel that anti-globalist are looking at the small picture and do not fully understand the big.
The pro group continues on and argue that the anti-globalist who say this will cause a loss of jobs is not a true statement at all. “Global economic integration does indeed make it easier for companies to shift or expand operations in countries where market conditions are most attractive. That is, however, a far cry from arguing that globalization is a key cause of job losses. Strictly speaking, international trade can explain only about 20% of the increased inequality between high- and low-skilled workers in either wage or employment terms. In the same way, production relocation accounts for only a small proportion of the jobs constantly being created and destroyed in industrialized countries. (Cattaui) They believe that the small jobs lost will be easily made up by the demands for other jobs in bigger businesses. The pro-globalist feel that things will be easily balanced out and money will quickly be made by all involved. They also see technology increasing rapidly with help from all the nations together. This way poorer nations will be able to become more technological advanced with the help of this globalized economy.
The anti-globalist overall seem a little naive and quick to fight instead of research. The impact needs more time and research before the long-term effects on the world will be noticed. Despite their legitimate concerns their violent protests just make them seem like a rebel group that most will not support. Also without much research done by the anti-globalist it just makes it easy for the pro to start moving forward. On the other hand the pro- globalist are doing trial runs and going out and testing their theories. Although bias, at least the pro-globalist have facts to back up their cause. Hopefully with time each sides demands will be met and globalization can go on without continued protests.
In conclusion both sides have good points. Pro groups are saying there is money for all and that it will help undeveloped countries grow. The anti group in retaliation are saying that only the rich will gain from this globalized economy. Both continue to fight for what they see as right in their own ways. But without more facts and effort from the anti-globalist this economy is going to continue towards globalization. Only time will tell what the real outcome really will be.
