The Pros and Cons of Globalization

Is Our Economy Headed in the Right Direction?

Globalization is an integration soon to happen in this 21st century. But this fast approaching concept is seen in two different views. Globalization can be seen as a sign of a hopeful future by some. By others this is a disaster for the world economy. Many experts argue for and against this new move in the economy. Both groups are standing their ground to protect their own beliefs towards the future.

To fully understand globalization one must look at its definition first.

"Globalization simply means freedom of movement for goods and people, and it is hard to be violently hostile to that. But behind this fight lies an older and more fundamental struggle-against economic liberalization, and against the chief representative thereof, which is the United States." (Revel)

This term has become a common word within the last few decades. Although the term is a new one, the concept has been around for a while. This is a coming event and some people are looking forward to the coming events. Others fear and protest away from it. Some even see it as a defining point soon to come to change our lives. "The restructuring of our political and economic life due to globalization may be as significant a process as the industrial revolution." (Danaher) The next industrial revolution is a big shoe to fill. But a globalized economy would definitely make for big and possibly better changes.

The debates are strong and fierce for and against globalization. To take a look closer at this, we view the pros and cons of globalization itself. According to an April 200 issue of Business Week these are the most common Pros and Cons.

Pros

- Viewing both the Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster.

- Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth.

- An open economy spurs innovation with fresh ideas from abroad.

- Export jobs often pay more than other jobs.

- Unfettered capital flows give the U.S. access to foreign investment and keep interest rates low. (Baker)