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Globalization Arguments and Impacts

Paper outline

The arguments used to explain contemporary globalization

How globalization has impacted the American Worker

Works Cited


Globalization Arguments and Impacts
Globalization has been a very hot discussion topic for decades. Many arguments have been given to unravel what exactly is globalization and how it began. More importantly, globalization has also been looked at from a perspective of benefits and burdens it impacts on various societies across the globe. Additionally, numerous arguments have been given for and against globalization in terms the impacts. This paper reviews several arguments used to explain contemporary globalization and its impacts to American workers.
The arguments used to explain contemporary globalization
Several arguments have been given to explain for the contemporary globalization. According to Vallas, Finlay, and Wharton, globalization are “the extension of economic activities across national boundaries, yielding networks of production, exchange, and consumption that embeds spatially dispersed regions of the world within a single, highly interwoven system” (316). The three authors argue that contemporary globalization has allowed for the free mobility of capital and work overseas. Furthermore, globalization is argued to contribute to importation of cheaper products from foreign countries. Globalization also empowers employers in First World nations to access cheaper labor from Third World nations.
Proponents of globalization argue that it guarantees human freedom enabling individuals to make their own choices. A major argument for globalization has been that it facilitates transnational flow of good, services, money, and ideas. Proponents also point that the liberalization of international orders allows individuals and nations to participate in the global economy and culture (Grewa 98).
Critics of contemporary globalization claim that it is a modern source of imposition of common global standards that constitute an empire. Though their confounded argument is not absolutely justifiable, globalization is thought to have an informal empire, as opposed to direct imperialism. Cohen is indifferent aboutthe nature of the contemporary globalization. He states that, whereas past globalization was characterized by exploitative elements, contemporary globalization clearly focus on human development and global advancement. Cohen points that modern globalization is exploitative per se but it never delivers the promises offered (Cohen 6). Cohen seems to refute claims that the world is completely globalized by pointing that the poor globalization idea is inaccessible for the majority of the poor world inhabitants (Cohen 166). He further points that globalization is not exclusively bad or wrong, but a phenomenon that holds expectations and promises that widely remain undelivered.
Globalization critics also point that it leads to income inequalities in the world. They attribute this to an increase in the gap between rich nations and poor nations. It is argued that 100 years back, the rich countries were 10 times richer than poor nations. At present times, the gap between rich and poor nation is 75 times. Globalization proponents dismiss this by arguing that globalization is not a source of increasing inequality but rather a factor of other nations globalizing while others are not (Arnold, 712).
How globalization has impacted the American Worker
United States corporations have been at the forefront in championing for globalization through establishing themselves across the globe as a way of increasing revenues. United States, just like other First World nations, has discarded workforce in search of cheap labor and less restrictive manufacturing laws. For instance, in 1990s America’s workforce in manufacturing was outsourced and to date the only industry that is a job resource in United State is the services industry. From this trend of continued globalization, American workers are vulnerable to the extent that it is likely that the situation will not improve in the near future.
Globalization has had a great impact on the labor in unskilled sectors, in the United States. It has increased foreign competition in the labor market and job flows in the United States. The impact of this has been increased job destruction and reduced job creation in almost all sectors, in the United States economy (Kondo 47). The more recent impact of globalization to the American worker is the income reduction. According to Bivens (p. 3), globalization has had two major impacts on American workers’ wages. He points out that low-cost outsourcing of labor by American industries causes either job dislocation or wage reductions. Moreover, it leads to changes in returns for labor inputs as relative prices within an industry reduce. All this preposition has led to a reduction of wages for American workers, which more specifically affects the less skilled and unskilled workers (those without a first degree).
Arguments about modern globalization never end, because people have different opinions about different aspects of globalization. Proponents of globalization are quick to point that global integration is vital for human development and global advancement. However, critics are of the opinion that globalization has contributed to increased inequalities between rich and poor nations in the world today. Global integration has some impacts on the American workers for some time now. The impacts have ranged from job losses to wage cuts, which have had an impact on income equality in the country. Globalization continues to increase in all countries globally, and people should accept that it is hard to ignore the impacts of globalization.
Works Cited
Arnold, Roger A. Economics. Mason, OH: Thomson South-Western, 2008. Print.
Bivens Josh, L. Globalization, American Wages, and Inequality. Economic Policy Institute Working Paper. Washington, D.C.: EPI. (2007). Print.
Cohen, Daniel. Globalization and Its Enemies. London: MIT Press, 2005. Print.
Grewa David, S. “Network Power and Globalization”.Ethics and International Affairs. 17.2 (2003): 89-98. Print.
Kondo, Illenin O. “Essays on Globalization.” University of Minnesota, 2012. United States — Minnesota: ProQuest Dissertations & Theses (PQDT); ProQuest Dissertations & Theses A&I. Web. 29 Oct. 2012.
Vallas, Steven P, William Finlay, and Amy S. Wharton.The Sociology of Work: Structures and Inequalities. New York: Oxford University Press, 2009. Print.

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