However, there is a wide and controversial debate on whether the outcomes of globalization give beneficial effects or detrimental consequences. The concept of globalization is most commonly related to the interaction of national economic systems. Presently, there is an increasing relation among economic systems of various countries in the different parts of the globe. This interaction is greatly observable through international trade, investment, and capital flows.
These processes enhance globalization and contribute to the establishment of a globalized economic system (Lorin). The development of state-of-the-art information technologies and modern communications are also ways by which knowledge and culture can be shared all over the world. Globalization is seen as a new reality in terms of economic, political and socio-cultural phenomenon that greatly affects the overall function of various institutions at the local and global level (Lorin).
Supporters of globalization tend to enumerate the numerous benefits that an individual and even a whole nation could gain from globalization. Since globalization allows the easier low of capital as well as production, it paved the way for the creation of more jobs. It allows the removal of trade barriers and the enhancement of international trade that allows large corporations in industrialized countries like the United States of America to invest in other states.
Those who are in favor of globalization defended that the benefits that could be gain from free trade outweigh its costs. Free trade enabled country to concentrate on the production of goods, which they can manufacture more efficiently. Then, they will trade this with other countries and acquire the other resources that they need in the same manner. This kind of process will aid in addressing problems like food crisis and the nourishment of a countrys citizens (Lorin).
The interconnected and interrelated feature of globalization also allows immigration. People can now move from one country to another. This is greatly observable in overseas contract workers who tend to look for jobs abroad in order find better opportunities. Once they have already established a good living condition there, they would eventually stay as legal citizens in that country and get their families. On the other hand, the critics of globalization asserted that this only gives way for large companies to exploit the labor force of other countries.
Corporations usually placed their manufacturing operations in states that have cheap labor in order for them to lower the cost of their productions. This is best exemplified by the existence of sweatshops wherein workers, some of which are underage are driven to work like slaves in factories for very low wages. They also criticize that the free trade often leaves agricultural producing country in a disadvantageous position because they cannot compete with those that trade capital goods (The Globalization Debate).
This often becomes the source of larger problems and the worsening of others like poverty. Moreover, the immigration that is happening often leaves underdeveloped and developed countries to become more vulnerable because the citizens that could actually help improve their situation are leaving them. This is clearly explained by the idea of brain drain (Ozden and Schiff). The discussions above show that globalization indeed, has its benefits and consequences. However, I deem that those who oppose this phenomenon have the upper hand in this debate.
This could be attributed to the fact that they were able to focus on the detrimental effect of globalization to the well-being of an individual. Those who support globalization also argued the advantages that it would give to the people but they did this by emphasizing economic gains rather than its direct benefit to the citizens of a country. In all of these, development could only be realized and appreciated if it is directly felt by an individual.
Lorin, Jean-Claude. Globalization. 10 November 2008