Globalisation is the integration of production, distribution, selling, financing, and investing into the markets across the national boundaries. Overall, the impact of globalisation has put both positive and negative aspects where positives are higher than the negative ones. Majority of U.S people says that it is good in terms of economy, consumers, and American businesses. At the same time they show less positive attitude for local jobs and environment. People are more acquainted with the term globalisation and understood its meaning in context of the interconnectedness it is achieving. It is not only the economic process rather it is playing a central role.
Forty percent people said: it has a positive influence as it facilitates to increase operations in jobs, manufacturing businesses, agriculture, and food. It allows Americans to purchase cheap goods and enables more jobs.
Fifteen percent stated: it has a negative influence as it degrade the environment and loss of U.S jobs to other countries.
Thirty percent were neutral.
The Economic Impact of Globalization
Though Globalisation posed risk to many people, the procedure is relatively similar from rearrangement of manufacturing and the integration of markets that took place in U.S. it has benefits and at the same time has costs also. The benefits of globalisation helped in many ways not only to the foreign countries but U.S itself. The U.S firms have gained access to new marketplace. They sell their products to the other countries globally. This selling helps in generating revenue and profits for shareholders of America. The U.S firms also gained an access to products and services at lower costs from other countries. The customers have access to buy several products from other countries. At the other hand, savers have gained access to take services and products at low costs. All these benefits eventually helped Americans to have a high standard of living and in other countries too.
With the transfer of manufacturing process in U.S, globalisation helps create advantages by allowing and with force - transfer of production. On a whole, U.S has gained from lessening in factors such as barriers and controls over the capital. The decline of wages has happened to less skilled and little educated people. The reason for this was the advancement in technology and computerization, not because of globalisation.
Moreover, the costs are not due to the loss of jobs. The employment has been grown substantially with the increase in globalisation. As the U.S firms have transferred jobs to other countries and so the other countries have set up their firms in U.S and employed Americans. The reason for increased costs is shifting of the assets from one use to the other and to keep the workers for the mix of changes in jobs.
With the costs and benefits, government faces a challenge so as to increase the benefits and lessening the costs. The main task for U.S government is to make sure of level playing ground for U.S and other countries in trade, FDI, services related to finances, etc.
The other challenge is to make sure that the labour that is unemployed because of competition would be able to obtain new skills to work into advanced industries or to move into a new place.
It is important for the government to consider domestic and foreign circumstances to make any policies. With the coordination and consultation Government policies helped U.S in being successful to meet the challenges. We have been witnessing lessening of trade barriers and enhancing free trade globally. The capital movements, technology advancements helped financial markets being more international.
Benefits of policies to help U.S. workers
Government has focussed to design policies that protect people at risks but not their jobs. These kinds of policies aim to help in their hard times such as unemployment insurance. The other policies are for workers in manufacturing industry that lost their jobs due to global competition. The government has designed specific programs for the workers that provide financial aid for a time being with the training to learn new skills and find good jobs.
Though the policies are simple to state, but are costly and difficult. The solution to this is to have the improved education system in the U.S as it is the bedrock of the current circumstances. The education is a key and hope for workers to learn, educate to prove useful not only to themselves but as a whole to the country.
- David Henderson, “The Changing International Economic Order: Rival Visions for the Coming Millennium,” Melbourne Business School, 9 Sept. 1999.
- Organization for Economic Cooperation and Development, Policy Coherence Matters, (Paris: OECD, 1999), 45.
- Jeffrey Frankel and David Romer, “Does Trade Cause Growth?” American Economic Review, June 1999, 379—99.