Economic Expansion in the 2000's Through Globalization


Overview


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Globalization is the idea of economic and governmental integration all over the world that is sparked by trade and investing in corporations throughout the world. Although globalization has become more predominant in the past couple centuries, it has been around for thousands of years in a more rudimentary form. The best example of the beginning of globalization is the Silk Roads in Asia that were used first during the Han Dynasty from 206 BCE-220 CE as a means to connect Asia and Europe through land and sea. Over time the term has become more complex in the ideas behind it and it's implementation. In present day terms globalization takes shape in the inter-connectivity of the global stock markets and multinational corporations that comprise the public sector of those stock markets. external image moz-screenshot.png

Globalization in America


Over the past 20 years globalization in America has taken off, especially as technology has advanced and trade has increaexternal image cartoon_globo_large.GIFsed. This is controversial as it is both good and bad for the U.S. to be engaged in more worldly affairs. While it has been proven that an isolationist policy only leads to economic hardship like during the 1929 Stock Market Crash and Great Depression, globalization also limits large nations' power and outsources many companies. The up side of being involved in world affairs is obvious and allows our economy to go beyond anything imaginable while pursuing an isolationist agenda. At the same time though, many of the largest U.S. based companies have outsourced jobs and plants to other countries where manufacturing is cheaper. This has severely impacted the U.S. economy as the number of entry level blue-collar jobs have been cut and therefore the consumer base has become more limited. Especially in the past decade when the recession hit, it has been damaging since it has contributed to the record high unemployment numbers.

Pros and Cons of Globalization


Globalization is a controversial topic though as it has its pros and it's cons.

Pros
  • Proponents argue that globalization allows for better economic opportunities for countries that open themselves up to free trade and lower tariffs. Historically, the countries that have had the most economic improvement are those that were open to globalization and freer trading.
  • It sparks competition in trade, technology, quality of product, price, and other factors that drive companies to develop better products for better prices to compete in the general market.
  • Globalization has made governments focus on how decisionexternal image globalization-uber-allies.jpgs will affect countries all over the world, not just themselves so decisions are more friendly world wide.
  • It allows cultures from all over the world to mesh.
  • Partially due to newer technology communication between countries have increased and the information available to citizens in the majority of countries is global as opposed to secular.

Cons

  • Job outsourcing has become more prevalent and contributes to the economic hardships in America and Europe that are adversely affecting the global market.
  • It has helped to eliminate some of the world dominance some countries had in the past creating political turmoil.
  • In contrast it has also hurt some of the underdeveloped countries that are reliant upon globalization and the trade associated with it to survive, causing them to become dependent.
  • Corporations have gained more power as they have gone global which makes them play a larger role in society and politics.
  • Some experts believe the globalization has also led to the spread of disease that would have normally been contained to specific countries.

Sites to Visit for More Information


http://www.globalization101.org/What_is_Globalization.html
http://www.buzzle.com/articles/pros-and-cons-of-globalization.html
http://www.america.gov/publications/ejournalusa/0206.html
http://www.epi.org/publications/entry/bp196/

Bibliography


Bivens, Josh. "Globalization and American Wages: Today and Tomorrow." October 10, 2007 .http://www.epi.org/publications/entry/bp196/ (accessed 5/17/10).

Ganguly, Poushali. "Pros and Cons of Globalization." http://www.buzzle.com/articles/pros-and-cons-of-globalization.html (accessed 5/17/10).

Levin Institute, "Globalization 101." September, 2007.www.globalization101.org (accessed 5/17/10).

Shiner, Josette S.. "U.S. Transformational Economic Policy." 01 February 2006.http://www.america.gov/st/econ-english/2008/June/20080608093002xjyrreP0.8731653.html (accessed 5/17/10).