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Controversies Of Globalization Essay

1062 words - 4 pages

Globalization is defined by the investment of business going beyond the domestic and national scale to the international market. It creates link between markets all over the world, therefore bringing diffusion of culture amongst those connected. Globalization has been around for as long as there was trade beyond indigenous barriers. Before the rise of industrialization and capitalism, globalization has spread in moderate amounts; just so much that cultural identities remain unique. With the rise of Capitalism in the name of America during the past century, this moderation has risen to the point where cultures are losing their identity to a cohesive “McDonald’s” culture. Of course, they are not without it’s better points. Statistics from the World Bank show that the poverty rates in East Asia and the Pacific region have gone down. During the 1990’s, there were about 472 million people that lived on less than $1USD, that rate declined to 271 million by 2001. Of course, it does not apply similarity to every country (impoverished or otherwise) in the world. There are serious consequences even on the part of the “winners” of globalization. Some of the most adamant supports include China and India. These nations are amongst the fastest growing industrial nations in the world, with much of the world’s foreign investments. They have become the lifeblood of the wealth in large corporations because they are the countries in which they primarily outsource to. The relationship between these cooperations and developing countries are the center of the controversy. Outsourcing for one, while beneficial for the cooperations, severely undercut jobs to nations in which they originated from, extremely low wages for the people in the countries that those jobs were outsourced to, and cause pollution especially in places such as China where the regulation of labor laws are next to non-existent.One of the definitions of a free market economy is that businesses should be free to pursue their own interests. It was not specified that it had to beneficial to national or even local economies. And that was exactly how companies such as Wal-Mart, the world’s largest retailer come to be as successful as it is. It’s motto “For everyday low prices, come shop at Wal-Mart”, though putting more money in the pockets of average the consumer, comes at the expense of deportation of numerous of jobs out of the US. One of the examples is their affiliation with General Electric; the biggest producer of appliances (dishwashers, refrigerators, stoves, etc) in America has gone on a rampage of outsourcing by the demands of Wal-Mart on keeping prices low. General Electric has fired over 100,000 workers, one of the nation’s biggest outsourcing ploys, to employ workers in Mexico, China, and other countries in Asia. Their relations with labor unions are passively hostile, it has been reported that managers are told to avoid hiring...

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