Globalization and for decades was considered as an eminent thing for several 2nd and 3rd world countries who had the opportunity to gain entry to world’s strong and established markets, in addition to the possibility for them to export back their relatively cheap merchandizes. While from global corporations’ perspective, then they had the opening to widen their international presence through penetrating new developing markets and consequently boost their operations and revenue streams. Nevertheless, globalization was not that helpful for both white and blue collar, since it had its share in deindustrializing heavyweight economies similar to the U.S. Accordingly, and since globalization is a complex subject, it is essential to assess both the advantages and disadvantages prior jumping into any conclusions (Ghemawat 2017).
Proponents of globalization debate that it includes the prospective to transform this world into a greater living place and to resolve world’s irritating concerns similar to poverty and unemployment. Thus, the pro-globalization groups argue that it helps in sustaining the foundations of free trades that will consequently decrease obstacles similar to VAT, tariffs and subsidization, in addition to promoting growth of global economy through making new jobs, inspiring competitiveness levels and lowering the prices (Collins 2015).
From the social perspective, then globalization can encourage cultural intermixing; with every nation can become better positioned to grasp more knowledge and understanding from other cultures, which will help in promoting tolerance, respect and acceptance of others. Additionally, workforce can relocate from a nation to another for the sake to promote their talents and seek for better opportunities (Manolică & Roman 2012).
The opposing groups of globalization perceive it differently, with their claims are grounded on several standpoints. Initially, they argue that in a time globalization is hypothetically meant to encourage free trade through eliminating all barriers, a rising contrasting trend by G20 to earlier claim is being noticed through imposing nearly 1,000 obstructive import and export measures (WTO 2014). In addition to the fact that the counter of VAT global club members is on constant increase and has surpassed 160 members (USCIB 2016).
Moreover, one of the perturbing issues for developed nations similar to the U.S. and Western Europe is the gradual loss of jobs and having them offshored to countries with less operational cost. Not just that, where developed nations are even threatening their workers to slash their wages and to happily accept that, unless they are willing to see their jobs ending up somewhere else overseas (O’Meara et al. 2000). Furthermore, international companies are blamed for social unfairness, unjust working circumstances, in addition to the absence of environmental sense of concern, biological damage and natural resources’ abuse. Besides, and amid the latest time of fast worldwide expansion of trade between the 60s and late 90s of late century, UNDP reported that inequality rates have got worse both domestically and internationally. The same report highlighted that 86% of global consumption is done through world’s wealthiest 20%, leaving the remaining population of 80% to consume just 14% (Bigelow & Peterson 2004).
References:
Bigelow, B. & Peterson, B. (2004) ‘Rethinking Globalization: Teaching for Justice in an Unjust World’, Harvard Educational Review, 74, pp. 347-348, British Library Document Supply Centre Inside Serials & Conference Proceedings, EBSCOhost, [Accessed on June 8 2017].
Collins, M. (2015), ‘The Pros and Cons of Globalization’. Forbes. Available online from: https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#34e6de16ccce, [Accessed on June 8 2017].
Ghemawat, P. (2017) ‘Globalization: Myth and Reality’. Harvard Business Review. Available online from: https://hbr.org/ideacast/2017/02/globalization-myth-and-reality. [Accessed on June 8 2017].
Manolică, A. & Roman, T. (2012) ‘Globalization: Advantages And Disadvantages From The Perspective Of The Manufacturer’, Centre For European Studies (CES) Working Papers, 4, 4, p. 747, Complementary Index, EBSCOhost, [Accessed on June 8 2017].
O’Meara, P., Mehlinger, H.D. & Krain, M. (2000) ‘Pros and Cons Of Globalization’, The Economist. Available online from: http://www.economist.com/node/393331, [Accessed on June 8 2017].
USCIB (2016) ‘Value Added Tax Rates (VAT) By Country’. United States Council for International Business. Available online from: http://www.uscib.org/valueadded-taxes-vat-ud-1676/, [Accessed on June 8 2017].
WTO (2014) ‘WTO report says restrictive trade measures continue to rise in G-20 economies’. World Trade Organization. Available online from: https://www.wto.org/english/news_e/news14_e/trdev_05nov14_e.htm, [Accessed on June 8 2017].