Do You Agree With The Benefits Of Globalization

The world has changed, and this is because of Globalization. Globalization is a process of global economic, cultural and political integration. It is one of the most tremendous impacts the world has experienced, especially on the economic sector since it has defined our global economy on the last couple of years. It has benefited countries throughout the years, however, now it has become a controversy. People have started to argue about their country 's situation and wonder if they are being affected or benefited from this action. There are many discussions among economists regarding gains from globalization, however, there is always two sides of the story, or better said, those who decide to see it as a win or those who decide to see it as

The north-south trade effects in developed countries can be seen through the last decades. Multiple changes in policies and regulations have allowed a more global free trading community. Since countries wanted to gain from trade, they needed to achieve mutual gains. The search for mutual benefits generated specialization, which in a globalized world, came in a much bigger level. Since countries are different from one another in terms of resources, they are able to exchange goods in which they have a comparative advantage. This suggests, that if resources are limited, there are always trade-offs to produce more of one good, as the economy sacrifices producing another good. A country may not be the world 's best at producing something, but the trade-off is worth it by exchanging those goods with other countries. Even though some developed countries may have the absolute advantage in producing most goods, by focusing on the industry in which they have the largest comparative advantage they are more likely to increase their economic growth. Basically, comparative advantage is the main reason for free trade agreements. In this way countries reduced trade barriers such as tariffs to allow a free trade. For developed countries like the US, this was a great way to gain from regional affairs, by engaging in multiple trade agreements with Latin-American countries, the European Union and some Asian countries. It is important to also mention the creation of the WTO in 1995, founded by mainly developed countries like the US to regulate trade barriers and prevent countries from using trade policies to harm each