Dr. Bryon Cunningham
15 November 2017
Which is greater: the benefits of globalization or the risks?
Globalism is the political, economic and social integration of different nations. Globalization has been around for thousands of years, throughout history people have exchanged goods and services across the globe and corporations invested in large enterprises that increased trade. Currently, globalization entails policies that open international and domestic economies, but is deeply controversial, due to economic inequalities among countries. Although there are some benefits to globalization, such as technological innovations, there are risks such as unfair employment for poor countries, that outweigh the benefits.
Adam Smith was one of the first economists who rejected the mercantilist system while advocating for free trade, and his writings influenced the globalization process. Free trade is one of the great benefits of globalization because it promotes global economic growth. More job opportunities are created, companies are more competitive, and ultimately prices are lowered for consumers. In richer countries, globalization brings lower cost goods from abroad, they obtain more spending power and a higher standard of living. There are opportunities for productive investment in high growth industries in developing countries.
In poorer countries, globalization utilizes foreign capital and technology to help the counties develop economically and encourages prosperity. When there is prosperity in these countries, democracy is improved along with human rights. Sharing technological advances can help developing countries progress, and are granted free trade agreements. Through trading and creating networks with different countries, globalization promotes cultural intermingling. Countries operate in trade with each other and learn to settle disputes through negotiations rather than resorting to the use of their military.