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Globalization Economic Globalization Has Affected Every American Essay

Globalization Economic globalization has affected every American in some way. In some cases, globalization has had a negative effect, for example when jobs are sent overseas. This occurs because globalization has reduced barriers to trade in both physical goods and services. As a result, people can lose their jobs to workers in foreign countries who are paid less. The reverse of this is that there are more opportunities for growth for American businesses. This will ultimately create new jobs, though usually for different categories of workers. A friend of mine's brother works for a company that sells most of its goods to the Asian market, which is something that was a lot harder to do prior to globalization. The reduction of trade barriers in particular creates opportunity, and if we use our comparative advantages we can take advantage of that opportunity (Investopedia, 2013).

Our lives are also affected quite a bit by globalization, in that we are able to purchase things more cheaply, if they are made offshore. This allows us to have a higher standard of living than we would otherwise have. For example,...

With the reduction of trade barriers, it is possible for a store in the U.S. To source goods from anywhere in the world. This in turn leads to higher profits for American companies, better returns for American investors, and higher consumption levels in the U.S.
For those who suffer from job loss, the effects might seem quite negative. Many types of jobs no longer exist in America, especially in manufacturing, and even some customer service jobs as well. For people who do not have special skills, or whose skills are no longer needed by the American economy, this represents a special challenge. It is often quite a bit easier to move goods and capital around, without moving labor. Then, it affects everybody, including taxpayers. For example, the banking crisis in 2008 led to recession that put a lot of people out of work. Perhaps this effect is easier to see in Europe, for example in a place like Spain, where foreign money flooded in and then out of that country, leaving millions out of work.

The freedom of…

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References:

Eitzen, D.S., & Zinn, M.B. (Eds.). (2012). Globalization: The Transformation of Social Worlds (3rd ed.). Belmont, CA: Wadsworth.

Investopedia. (2013). How globalization affects developed countries. Investopedia. Retrieved September 18, 2013 from http://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp

Mohr, A. (2013). The effects of economic globalization on developing countries. Houston Chronicle. Retrieved September 18, 2013 from http://smallbusiness.chron.com/effects-economic-globalization-developing-countries-3906.html
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