Running head: GLOBALIZATION 1

Globalization

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Institutional Affiliation
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Question 1. Globalization pros and cons

Globalization is a multifaceted process in which global markets, enterprises,

production, and national financial systems are interwoven (Burlacu et al., 2018). The rise of

globalization has enabled large companies to expand globally increasing their profits to levels

that rival states (Moynihan, 2018). Globalization has been very beneficial for corporations

but has also had negative effects on local workers and businesses.

A major criticism leveled at globalization is the fact that it has made some companies

too powerful. As a result, some companies have emerged capable of exerting influence on the

politics of foreign countries. This has corresponded with the rise of businesses and banks that

are perceived to be too big to fail. Such a mindset makes companies ruthless in their pursuit

of profit. Hence, they are more willing to bend regulations in their favor. Globalization has

led to a decrease in worker wages, specifically in the United States (EPI, 2013). This is

because companies can export their labor to foreign countries where they pay lower wages

and exploit the local workforce.

Globalization has also brought benefits to the global population, key of which is

enhancing access to information. Integrating the world has reduced the isolation of poor

countries and has enabled fast communication. Globalization has also increased the speed of

commercial operations and has increased the efficiency of all economic activity at the global

level.

Question 2. Should globalization be encouraged, diminished, or stay the same?

Although globalization has some benefits in the short term, its long-term implications

cannot be ignored. Globalization, however, cannot be brought to a halt, it will continue to

expand and evolve. As such international regulation is required to govern how multinational

corporations operate and to protect workers, consumers, and local industries. An example is
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the development of a global minimum corporate tax initiative. This will act as a deterrent to

prevent companies from relocating their revenues to countries with low tax rates.
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References

Burlacu, S., Gutu, C., & Matei, F. O. (2018). GLOBALIZATION – PROS AND CONS.

Researchgate.net.

https://www.researchgate.net/profile/Sorin-Burlacu-2/publication/324212575_Globali

zation_-_Pros_and_cons/links/5d1a071e92851cf4405a6ba3/Globalization-Pros-and-

cons.pdf

EPI. (2013). Globalization has lowered wages for American workers, a new EPI study finds.

Economic Policy Institute. https://www.epi.org/press/globalization-lowered-wages-

american-workers/

Moynihan, F. B., Ruqayyah. (2018). 25 giant companies that are bigger than entire

countries. Business Insider. https://www.businessinsider.com/25-giant-companies-

that-earn-more-than-entire-countries-2018-7?r=US&IR=T