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The Effects Of Economic Globalization

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In 1944 at Bretton Woods, New Hampshire, the foundation for a post-war globalization was laid. The “Bretton Woods System negotiated the rules for commercial and financial dealings among major capitalist countries while promoting relatively free trade, stable currency values linked to the U.S. dollar, and high levels of capital investment.” (Strayer, 1025). But with this new foundation being laid, several problems were created. It lead to unfair and disproportionated economic growth, it had also shifted the power in favor of big businesses, and created instability for the world economy and distribution of wealth. Economic globalization had its undeniable positive effects on the world also. Economic globalization produced one of the most remarkable …show more content…

Economic globalization contributed to inequalities at a global level and among developing countries, economic globalization also affected individual nations; both among the rich and poor. For example, in the United States, a division of labor left many unskilled workers in low-wage service sectors. However, economic globalization has managed the most remarkable spurt of economic growth in the United States History. In 1950, the total world output was at a value of 7 trillion, by 2009 it had grown to about 73 trillion and on a capita basis from $2,652 to $10,728 (Strayer 1029). This created an immense impact on human welfare. Life expectancy increased, infant mortality declined, and literacy had increased. A UN Human Development Report in 1997 concluded that “in the past 50 years, poverty has fallen more than the previous 500.”. The United Nations also reported in 2015 that 836 million people were still living in extreme poverty, but that is down from 1.9 billion and is considered to be at least progress (Crash Course Economics #16, 1:24). In the video Globalization and Trade and Poverty: Crash Course Economics #16, it reports that the World Bank also predicts that by 2030 the number of people living in extreme poverty could drop to less than 400 million, assuming that everything will keep improving (Crash Course Economics #16,

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While the employers make more benefits on their business, the working class more struggled with their limited income. Globalization is another reason for increasing income inequality in the America. Globalization shows the cultural and economic changes as a result of dramatically rise in international trade and exchange in the late twentieth and early twenty-first century. To maximize benefits, the trade of materials between the United States and other countries has become popular. Likewise, to reduce labor costs, many corporations move their factories to other countries such as China, Bangladesh, India, Vietnam, etc.

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While globalization brought a lot of negative effects, it ultimately was more positive because it boosted countries' economies and made the world more connected. Globalization began happening throughout the world, which allowed many economies to change for the better. Source A shows data that allows us to see how much of a positive impact globalization can have on a country. When more globalization occurs, it raises the standard of living and life expectancy, because people can live more easily. Source C claims that with globalization and the expansion of world trade, “whole countries have seen their fortunes soar as foreign investment has poured in.”

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However, humans have achieved a level that was never previously before known. Some countries have been able to reduce a high population without the One Child Policy (Doc B). However, even though these countries have been able to drop their population, these countries still have an extremely high poverty rate. In China the amount of people in poverty is 13.1%. Even though this is a high poverty rate the poverty line in South Korea is 15% (World Bank).

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Globalization in the past 80 years has connected our world exceptionally well compared to the years before. Just under 80 years ago, when World War II ended, people saw an opportunity to grow together and learn from past mistakes. Globalization has brought the world together which has caused poverty rates to go down, work systems to become stronger leading to more accessibility, and overall life expectancy to increase. Globalization has forever changed the ways of the world and will continue to benefit people by bringing us together to become one substantial world. Globalization has benefited our world involving the decrease in poverty rates.

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But globalization has extremely accelerated the extent of the negative effects. There are definitely a lot more benefits of globalization. For example, more people are getting paid what their worth. In the past people would work more to be paid less money, but now people work less and get paid more. This is because of new strategies and tools we've gained from globalization and the sharing of ideas across nations making it easier to produce and distribute, and inflation.

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Extreme poverty has decreased by 35% since 1990. In addition, the goal of the development goals of the first millennium was to halve the poverty rate between 1990 and 2010. Since then, almost 1.1 billion people worldwide have fled into extreme poverty. Access to new markets: Businesses in Australia are benefiting from globalization including new customers and various sources of income.

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To what extent does globalization contribute to sustainable prosperity for all people? Globalization contributes largely to sustainable prosperity for all people. Sustainable prosperity is when people of any ethnicity,religion or gender have all their needs met, all have an equal opportunity to create wealth and all to have the chance to pursue happiness. There are many groups that try to make sure everyone has sustainable prosperity. Based on the perspective demonstrated the source should be embraced to a certain extent.

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For this very reason, leaders from all over the world met at Bretton Woods, and created

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3. Globalization Throughout the last decades, globalization became a real phenomenon, but history tells us that it is actually not a new social, historical phenomena, but has, under different names and manifestations, been with us for a long time. It is actually not only the continuation of the liberalization of international trade, which began in the mid-19th century with the launch of cross-border trade over long distances and later with intensive large-scale mobility of labor and capital. During capitalism, globalization has amplified due to the lust for profit, which is driven by capitalists across the globe. Indeed, globalization has significantly strengthened ever since.

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Globalization is defined as the transfer or easy flow of goods, services and capital from one country to another. Globalization according to some authors has been accompanied by an increasing rate in inequality in terms of income distribution, and this has happened both in the developed and the developing nations. The data on growth and income inequality seem to contradict the optimism of the proponents of globalization. By conceiving of globalization

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Throughout the twentieth century, countries were creating treaties, trade blocs and global governance institutes to promote open market and free trade. Europe’s golden age of trade with very low tariff and high economic development began mid-19th century and collapsed

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Globalization made negative and positive impacts on Vietnam in economy,culture and environment respectively. Globalization, particularly economic globalization, has positive and negative influences on Vietnam. Before globalization, the level of the economy in Vietnam was low that people could not get food and clothing. Vietnam was a backward agricultural country which had the visible gap between social classes(VOV, 2006). By co-operating with overseas corporations, local companies in Vietnam increased the volume of business.

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This objective was met in 2010 however; certain countries and regions are still struggling. The Population Reference Bureau states that there are 1.2 billion people living in extreme poverty who “survive” on less than $1.25 a day, with a disproportionate amount living in Asia and Africa. In addition the rates of extreme poverty dropped dramatically in China as well as India, the size of their respective populations are indicative of these countries being two of the top five countries that share in the extreme poor. (Population Reference Bureau

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This paper will explore both the advantages and disadvantages that globalization has on the world. Globalization is good for economy. First, Enterprises can operate internationally, and production can be produced internationally. Similar to poor countries like Africa, although they are poor, they have a lot of cheap labor, other countries will make their goods

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Firstly, globalization only serves the interests of developed countries like the US, European countries, China, Singapore more than developing countries such as Vietnam, Thailand, Africa (Is globalisation, n.d.). According to Lianna Amirkhayan (n.d.), the uneven distribution makes a big difference in income between developed and developing countries. The rich countries still maintain their wealth which even double rich, compared to developing countries. Secondly, globalization creates a moving wave among people in developing countries. They move to other countries to find a better chance to work.

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