Economic Globalization Essay

Economic globalization may benefit some, but is to the detriment of the majority of global citizens. How far is this true?Currently, one trillion US dollars are flowing around the world every day. Today, globalization has reached into its highest peak than ever before and it also catches our full attention on both its pros and cons. Economic globalization, on the other hand, is no doubt the most important part among globalization and whether it is beneficial to our world or is to the detriment of the majority is still quite controversial. So many people argue that economic globalization increases instability of economy and interest distribution. But we cannot ignore the fact that it also brings us better living standard and varieties of choices on many aspects. After all, which side overrides the other and influences us in a substantial way?You can get a clear idea from How the iPod Explains Globalization, 'The lion's share of the iPod salaries are in America. Those 13,920 American workers earned nearly $750 million. By contrast, the 27,250 non American Apple employees took home less than %320 million'. Also the resource mentions that the big winners from Apple's innovation were the 6101 engineers and other professional workers in the United States, who made more than $525 million①’. The meaning from the above indicates that even though globalization leads to a more flexible labor distribution and those developing countries seem to get more involved in this movement, in fact, their manufacturing are really of low value added. With the comparative advantage grows more and more obvious, this gap between the engineers and factory workers will become larger than ever before. Consequently, this disastrous economic style will be the nightmare of those workers, the majority of global citizens.A second claim states that the globalization of economics will unstablize the current economic situation since the links and relations between inter-nations are getting increasingly bonded together. At the market level, linked global financial markets propel local issues into international problems, such as meltdowns in Southeast Asia to Russian debt defaults②. This is somehow like the famous Butterfly Effect since a tiny fluctuation from a regional economy will cause vast changes to the world. Some researchers brings out the theory of modularity. They say that modularity allows a system to more easily evolve and reduces the chances of catastrophic collapse due to some kind of outside influence, such as climate change or disease. However, globalization is a process that reduces modularity because it encourages an equality of trade between entities in different parts of the world. This reflected their worries on the potential danger of the world economy which lacked a kind of modularity. Furthermore, those experts studied the nature of various global recessionssince 1969 and say that the increase in globalization makes the global economy less stable. What's more, when a recession does hit, the recovery becomes slower as globalization increases.The economic globalization on the other hand, is not that disappointing. After all, the world is now coming together to solve key environmental problems such as global warming, ozone layer depletions and other alike issues which could not be done in the past without cooperations between nations. We can infer from many recent climate summit that nations are trying to reach agreements through every ways such as propaganda, international environment organizations, movies and laws and restrictions. You can hardly imagine the effect they exert on our lives without globalization because it tights us closer and stronger. It is the globalization that made us so easy to obtain the message from others and it is the globalization that offer nations the opportunities to deal with collective challenges and also capable enough to make the right decisions.So far the discussion on economic integration driven by globalization have all been based on the unpredictability and volatility, however, another voice claims that the integrated economic association have indeed, contribute greatly to the safe and sound of world economic and its well organize. It is easy to get the idea that the more nations are connected the stronger and easier they are to overcome the unilateral difficulties such as the recent Greece and the long before American economic crisis cases. Undoubtedly, countries who have been involved in global trade and financial activities will take actions more prudently and be more compliance with the law because they receive pressure from both the outside cooperative countries and domestic side. As a result, countries have to follow many rules and agreements on economic activities and are not indulgent to take actions. We can understand this point by looking at the case of Greece economic crisis. When Greek president announced he would make a referendum on the 8 billion assistance program provided by EU, he received intensive condemn from member states such as Germany announced that it have to face the risk of being separated from EU as well as members in other Greek parties. We can imagine that in such a critical juncture, Greece have to rely on the 8 billion assistance fund in order to weather the storm so at this point a referendum is obviously not suitable. To sum up, it is the tight bonds between Greece and EU countries that helped Greece weather the crisis and also, restrained Greece from acting in their own interests.Even though the globalization of economics do harm those people in developing countries by its exploitation as well as immature economicsystem developing countries have right now. And it is true that the risks are likely to be greatest in the next decade or so, as they undergo the difficult transition to more competitive, transparent and rule-based economic systems. We should begin to see that a rising tide doesn't necessarily lift all boats③and this negative impact is of short run. In the long run, huge amounts of people will benefit from this economic globalization movement especially people from relatively poorer nations because it can precipitate nations to collaborate and cooperate. What’s more, it has already begun to give us hopes in standardize markets and stabilize trade and economic activities.Words: 1017Bibliography①CHRYSTIA FREELAND, REUTERS, 2011. How the iPod Explains Globalization, June 30.②LISA SMITH, 2007. The Globalization Debate. Available from:/articles/07/globalization.asp#axzz1e8ABShdg③Quote by Derek Brown. Available from:/quote/795386。