Economics P

3/22/2020

What is globalization? Is globalization good or bad for the U.S. economy? Why?

The most basic understanding of globalization is the way in which companies,

businesses, and organizations operate on a global scale. Examples of globalized companies

include ICBC, JPMorgan Chase, and Apple. Globalization benefits the US economy well as this

country was built on immigrants. Without globalization, the US economy would not be as strong

as it is now.

Without immigrants, the majority of the foreign trade that occurs in the country would

not exist. The globalization of oil and raw materials has always been a part of the global

economy, thus also affecting the US itself. “People cross borders to offer their labor, their

investments and their ideas in markets that feature opportunities unavailable in their home

countries.” (Barksdale) Such ideas and investments can create products in one country that will

then be sold to another, thus, the market has begun to work on a global scale. Many foriegn

products are sold to the US, especially with offshored labor from a variety of countries.

Cultural awareness and the spread of culture is also a major part of globalization,

especially in the US. “A globalized society boosts the rate at which people are exposed to the

culture, attitudes and values of people in other countries. That exposure can inspire artists,

strengthen ties between nations and dampen xenophobia.” (Josephson) As this kind of exposure

spreads throughout the US, more cultural integration can be implemented and diversity can be

increased.
 There are arguments that globalization harms the US economy. A common example

includes US labor loses out to cheaper, offshored labor in less developed countries. “The blame

for three decades of stagnant wages in most advanced countries is often laid at the doorstep of

globalization, particularly competition from low-wage developing exporters.” (Dadush) This

competition usually ends with cheaper labor winning, resulting in two issues. One is the US’s

loss of labor, and wages getting cut, while the other involves the ethical rights and issues around

cheap labor in developing countries.

In summary, globalization seems to have better benefits than consequences. Despite the

issue regarding human rights and labor workers, globalization’s effect on the US economy has

been strong and apparent. Especially seeing how the global economy has reacted to the recent

coronavirus pandemic, it is clear how interconnected the global economy is. By restricting travel

alone before closing businesses and seeing prices around the world fall, every country can be

seen as relying on one another.

 Works Cited

Barksdale, Nate. “Immigration and Globalization.” ​Boundless Immigration​, Boundless

Immigration, 11 May 2019, ​www.boundless.com/blog/globalization/​.

Dadush, Uri, and William Shaw. “Globalization, Labor Markets, and Inequality.” Carnegie

Endowment for International Peace,

carnegieendowment.org/2012/02/02/globalization-labor-markets-and-inequality-pub-470

28.

Josephson, Amelia. “The Pros and Cons of Globalization.” SmartAsset, SmartAsset, 21 May

2018, smartasset.com/mortgage/the-pros-and-cons-of-globalization.