Globalization in America By: Anyssa M. Neustel Globalization has been disputed amongst many people within the recent years. While it has promised to bring the world unity among nations, globalization has also brought turmoil for individuals working to globalize the world and its economy. Globalization reaches from the sweatshops overseas, to the low prices of goods in the United States. Both the benefits of globalization and the appalling conditions which are created because of it are contributing factors of the debate. The use of globalization is easily identified as the bringing together of various countries and peoples and encompasses all cross-border interactions, whether economic, political, or cultural (Marber, 76). The question that plagues many today is: What will happen if the world becomes globalized and what will happen to a country s culture, political system, and economics if they become globalized? In order to properly understand globalization and the effect it has on the civilizations of the world, one must comprehend what it is and the characteristics it has. Globalization is the intermingling of economics and cultures; it is in essence, a business deal. Globalization links distant localities in such a way that local happenings are shaped by events occurring many miles away (Lecture Notes). Globalization essentially takes money from developed countries by outsourcing jobs, and redistributing the wealth to countries that have lower to no minimum wage laws. Thus creating jobs, and increasing the wealth within the country allowing it to become stronger, transforming the country into a consumerist nation, allowing it to develop (The Other Side of Outsourcing).
Globalization has always existed in one way or another however, it has never been as extensive as it has within the past twenty years (Lecture Notes). In 1995 the World Trade Organization (WTO) was created for negotiating, monitoring, and regulating international trade and agreements (Anderson, 100). The WTO was designed to help so that both the consumers and producers of goods and services conduct business without fear of trade restrictions and government intervention (Anderson, 100). This would create an easier environment for countries to trade with one another, and would allow for a better flow of trade from one country to another. The new wave of globalization has also been influenced greatly by innovation of the world wide internet, the internet has allowed on a global scale a vast quantities of goods and commodities to be shipped across the world at extremely low cost (Economics Online). The use of the Internet has allowed for independent selling through various websites from one nation to another, breaking what had once been a border between two countries, which at one point was seen as nearly impenetrable. Globalization faces several goals for the near future, which will affect the global community and change the world from independent working countries, to a large global community. Globalization seeks to firstly, create affordable goods in an overseas or different country. Secondly, by creating affordable goods overseas and employing there it would then create a greater economy within the host country. And thirdly, to break down cultural borders and to allow tolerance of different cultures, and promote learning opportunities (Lecture Notes). Those who promote globalization tend to address several goals that it will facilitate, in hopes to bring the world nations of today closer than they have ever been before. The
people who promote globalization state that through the low wages overseas, and the low cost of goods at home it has created a large international economy that provides a greater distribution of wealth (Lecture Notes). By outsourcing home countries are promoting a sense of equality among people, attempting to bring underdeveloped countries out of poverty, and to the same economic status of nations such as the United States. Globalization offers a variety of benefits to the global community, Peter Marber argues that globalization helps the individual consumer stating that in 1895 the list price for an American-made bicycle was $65, and today we can buy one for the same price with 21 speeds Chinese-manufactured (Marber, 78). China offers cheap reliable labor (The People s Republic). The United States can not compete with other countries in the labor force. China offers low wages and hard workers, while the American workforce is composed of Labor Unions, and labor laws of high minimum wage as seen in the documentary Detropia (Detropia).This portion of globalization is simply the effectiveness of producing more goods at a smaller cost, with less work for the American people. Making commodities and cheap, affordable, and easy at home the American dream (Marber, 78). With this process, it eliminates the gap between rich and poor countries, allowing for the developed countries company owner- to pay their employees who live overseas. After they have done this, then that employee presumably, will spend their money within their country boosting its economy (Marber, 80). Producing a Robin Hood effect, and preparing an equal economic global community. Unfortunately globalization has also presented the global community, with a multitude of global issues. Globalization has brought countries together, but it has also
has begun de-industrialization within various parts of America and domestic countries (Onesto). The most notable, is Detroit, Michigan. Detroit was at one time a thriving city, and one of the fastest industrialization growing cities in America when it became home to the automobile industry. With the outsourcing of the automobile industries, large numbers of people were left without jobs (Detropia). Today, Detroit is one of the largest poverty ridden cities in America. Li Onesto compares Detroit s poverty with hurricane Katrina, and the despair in which it brought (Onesto). The literacy rate is only 50%, and the population has dropped from 8 million to less than 1 million (Onesto). Detroit is now America s fastest dying city (Onesto). Companies look to the cost of their product and in attempts to keep a lower price, if a country were to raise their minimum wage expectancy, and it were cheaper within another country, it is likely that a large company would pull their corporation and relocate to another if it is beneficial to their finances. This would decimate the former country, and leave hundreds of people unemployed, returning that country to its prior economical state (Economics Online). Furthermore, Globalization has promoted human capital within overseas sweatshops (Marber, 80). Daniel Viederman points out that the people working within sweatshops are those who were [are] not paid minimum wage, who were [are] exposed to hazardous materials or dangerous machinery [and] forced to work overtime (Viederman). However, the dilemma is in how to fix this issue in a country that is not associated with American sentiments or labor laws. While, BW.com Staff may argue that there are companies attempting to address these poor work conditions, it is impossible to believe that all companies would join in this move (BW.com).
Those who promote globalization state that the free trade industry and outsourcing of jobs is providing a greater distribution of wealth and allowing a greater variety of goods to enter the global market (Lecture Notes). This helps bring down the borders that had once defined country borders, and allowing others to experience various cultures and ideas. By outsourcing jobs, countries that were once poverty stricken, are able to slowly climb out of poverty to begin becoming developing countries. Similarly Asia has a higher standard of living and greater purchasing power (Lecture Notes). Those who disagree with globalization see how globalization has reduced the cultural borders (Ghemwat, 74). Countries are becoming more Americanized by outsourcing and free trade, because it is more accessible and affordable (Lecture Notes). Opponents of globalization see that there is a problem in financial accountability. Rather than having separate national economies with small banks, with globalization will come a global economy and therefore a global-like bank (Foroohar, 67). Every country will ride upon one another, and when one suffers, then the entire global economy will undergo the same misfortunes (Lecture Notes). Globalization proponents, while meaning well, are slaughtering the identification among the different nations and racial groups. There will be a loss of culture, economics, and a loss of religious affiliation, if globalization continues at the rampant rate that it has since the invention of the internet. With globalization comes with many benefits and concerns however, when weighing the pros and cons, it is apparent that if this is to continue then the world will not be the same as it is today. In order to save the world from a mass unification of cultures and economies, there must be a change in the way in
which businesses are allowed to transport their companies overseas, and there must be more laws and regulations, on the part of all countries.
Bibliography Anderson, Sheldon. International Studies: An Interdisciplinary Approach to Global Issues. Boulder: Westview Press, 2013. 'Detropia' Shows Challenges Facing Detroit. Bloomberg, 2013. Film. "Economics Online." Globalisation. Economics Online. Web. 16 Feb. 2015. <http://www.economicsonline.co.uk/global_economics/globalisation_introduction.html >. Foroohar, Rana. Go Glocal. Time Inc., 2012 Friedman, Thomas L. Reporting. Discovery Communications, 2007. Film. Ghemawat, Pankaj. Why the World Isn t Flat. McGraw-Hill, Washington Post Interactive, LLC. 2007. Hink. Globalization. Lecture Slides. Marber, Peter. Globalization and Its Contents. The World Policy Institute, 2005. Onesto, Li. ""Dying Detroit": The Impacts of Globalization. Social Decay and Destruction of an Entire Urban Area." Global Research. Global Research, 23 June 2010. Web. 17 Feb. 2015. <http://www.globalresearch.ca/dying-detroit-the-impacts-ofglobalization-social-decay-and-destruction-of-an-entire-urban-area/19856>. The People's Republic of Capitalism. Athena :, 2009. Film. Viederman, Daniel. Verite, BW.com Staff. Overseas Sweatshops Are a U.S. Responsibility: Pro: Good, and Good Business, Con: Already Doing Their Best.