Globalization is the process by which regional economies, societies, and cultures have become integrated through a global network by transportation, communication, and trade. Through a global lens the process of globalization seems to be vital to the development of the modern world. As a result of globalization there has been a dramatic transition in every aspect of life around the world, more specifically in areas such as trade, immigration, and human development. International trade bolsters sales, lowers the cost of production and consumption, and extends the market reach of any corporation. This is beneficial to America in that consumers are able to buy more goods and services at lower costs and therefore the gross domestic product rises. In addition, with domestic consumers able to market their product on a global level foreign consumption rises. Immigration brings some of the same benefits as trade. Immigrant workers statistically work for lower wages and take jobs that are purportedly unappealing to native workers. This results in a lower cost to employers and an influx of workers. Whether legal or illegal, additional workers result in economic growth. Finally, globalization has facilitated human development through cultural diversity, broadening ideologies, and creating beneficial competition between nations. However, because the U.S. protects its citizens with labor laws and livable wages millions of manufacturing jobs are lost to inexpensive, overseas counterparts. While there are many benefits to fusing the world, globalization comes at a cost, the elimination of America’s middle class.
Trade supports more than 50 million American workers who are employed by companies that export their goods, accounting for almost 40% of the private sector. In 2009 the U.S. exported $1 trillion worth of manufactured goods. While, manufacturing accounts for less than one third of the nation’s GDP, international trade supports one in five manufacturing jobs. In addition, jobs linked to exporting statistically pay 13 to 18 percent more than non-trade-related jobs (heritage.org). With the ability to trade, America is able to specialize in the production of goods and services that it has a comparative advantage in. For example, America is the world’s largest exporter of services, exporting $507 billion worth and running a $100 billion surplus. Investment is also a faction of international trade where foreign investors may choose to take stock in American companies. Foreign direct investment in the United States totals more than $2 trillion and sustains 5 million American jobs with an annual payroll of $350 billion, according to the U.S. Department of Commerce (uschamber.com).
International trade is the foundation on which America built its prosperity.
Modern trade policies have created a level of competition that propels continual innovation leading to better products, higher wages, new markets, and an increase in investment. Additionally, producers...