Globalization Arguments and Impacts
Globalization has been a very hoot discussion topic for decades. Many arguments have been given as attempt 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 its impacts. This paper reviews several arguments used to explain contemporary globalization and its impacts to American workers.
Arguments used to explain contemporary globalization
Several arguments have been given as explanation for the contemporary globalization. According to Vallas, Finlay, and Wharton, globalization is “the extension of economic activities across national boundaries, yielding networks of production, exchange, and consumption that embed spatially dispersed regions of the world within a single, highly interwoven system” (316). The three authors argue that contemporary globalization has allowed for free mobility of capital and work overseas. Furthermore, globalization is argued to contribute to importation of cheaper products from foreign countries. Globalization has is also argued to enable employers in First World nations to access cheaper labor from Third World nations.
Proponents of globalization point out that it guarantees human freedom enabling individuals make their own choices and lead freer world. A major argument for globalization has been that it facilitates transnational flow of good, services, money, and ideas. Proponents also point out that the liberalization of international orders allows individuals and nations to participate in 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 kind of an empire. Though their confounded argument is not absolutely justifiable, globalization is thought to have informal empire as opposed to direct imperialism. Cohen is indifferent when it comes on the 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 out that modern globalization are exploitative per se but never deliver the promises offered by it (Cohen 6). Cohen seems to refute claims that the world is completely globalized by pointing out that the poor globalization idea is inaccessible for majority of poor world inhabitants (Cohen 166). He further points out that globalization is not exclusively bad or wrong, but a phenomenon that hold expectations and promises that widely remain undelivered.
Globalization critics also point out that it leads to income inequalities in the world. They attribute this to an increase in gap between rich nations and poor nations. It is argued that 100 years from now, 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 other are not (Arnold712).
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 it workforce in search for cheap labor and lesser 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 becoming more vulnerable to extend that it is more likely that the situation is not going to normalize in the near future.
Globalization has had great impacted on the share of labor in unskilled sectors in the United States. It has increased foreign competition on labor market and job flows in the United States. The impact of this has been increased job destruction and reduced job creation in the almost all sectors in the United States economy (Kondo 47). The more recent impact of globalization to 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 prepositions have led to reduction of wages for American worker which more specifically affects the less skilled and unskilled workers (those without first degree).
Arguments about modern globalization are never ending. Proponents of globalization are quick to point out 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 had some impacts on the American workers for some time now. The impacts have ranged from job losses to wage cuts which have had impact on income equality in the country.
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