Essay on The Benefits and Drawbacks of Globalization

Globalization can be defined as the ability to produce and good or service anywhere in the world using capital, technology and components from anywhere and to sell the output anywhere and place the profits anywhere - - Peter Jay, BBC Economics Corrospondent, 1996 Rather than lead to economic benefits for all people, economic globalization has brought the planet to the brink of environmental catastrophe, social unrest that is unprecedented, economies of most countries in shambles, an increase in poverty, hunger, landlessness, migration and social dislocation. The experiment may now be called a failure. The International Forum on Globalization (IFG) here outlines the economic and social problems of which they accuse increased†¦show more content†¦The critics alarmed by these figures, argue that they are an inevitable result of a reliance on the market force. This they argue gives the rich a free reign to exploit the poor and add to their wealth, as well as draining natural resources from poorer countries whilst destroying their environment. This is justified by the belief that as international trade restrictions are lifted, large multinational corporations will be able to produce their goods anywhere in the world. They will subsequent ly choose to produce where low-paid domestic workers are most easily exploited due to a lack of labor laws and trade unions, and where they can ignore costly environmental protection acts either because the local government does not recognize them, or chooses to ignore them. This will be the lowest possible production cost to the firm, which will in turn maximize their profits in line with the theory of the firm. The firm however, as Jay makes clear in his definition, is under no obligation to keep these profits in the production country, and is in fact likely to channel savings backs the developed world, leaving the country of production with few benefits from theShow MoreRelated The Benefits and Drawbacks of Globalization Essay3031 Words   |  13 Pagesliberalisation has been mixed as well. The benefits have been increased foreign investment into the country, increased flow of technology into the countries, and higher economic growth rates as a result. On the other hand, incom e inequality has worsened, most of the jobs that have come into these countries leave little room for future growth, there have been significant environmental costs. Economic theory suggests that in the long run, everyone will benefit from economic liberalisation, but at theRead MoreThe Drawbacks Of Globalization920 Words   |  4 PagesYou either hate it or you love it. Globalization. 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