Globalization’s others about globalization. This organization defines globalization as,

 

 

 

 

 

 

 

Globalization’s
Impact

Amber
Lyles

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Central
Texas College

 

Author’s
note

Research
paper written for ECON 2302, Central Texas College, Professor Mohammed
Partapurwala

 

Correspondence
concerning this research paper should be addressed to Amber Lyles

Email:
[email protected]

 

 

 

 

 

Abstract

Globalization has become
a universal occurrence.  Once vaguely
utilized, it has now paved the way for many countries to develop a more
practical way of life.  This paper will
demonstrate the success and malfunction that globalization has brought to the
economies of various countries, some impoverished and some that are wealthy.

Keywords:
Globalization, United States, China, India

 

 

 

 

 

 

 

 

 

 

 

 

 

Globalization’s
Impact

     Globalization was once a word not very
often heard, not it can be heard, used, and found quite frequently.  There are many countries, institutes, and
foundations that have poured over data and research to provide us with the data
we receive today.  One such institute,
Suny Levin Institute has dedicated a group, Suny Global Workforce Project,
dedicated to educating others about globalization.  This organization defines globalization as,
“a process of interaction and integration among the people, companies, and
governments of different nations, a process driven by international trade and
investments and aided by information technology”, (“What is Globalization?”
2016). Globalization has impacted countries both positively and negatively.  One of the basis for globalization is to help
economies to function when localized supply and demand are not meeting the
countries financial needs.  Globalization
is not just an option, but a means to introduce the economy to products that
are in demand.  Globalization is a far
reaching practice that is utilized in many nations.  The United States, China and India are
examples of some of the territories that have been impacted by globalization,
both favorably and adversely.

     In the United States, globalization is
incorporated into nearly every aspect of life. 
When one pulls out their cell phone, one doesn’t immediately ask
themselves, where this was made.  For
example, Apple says that all of its products are designed by Apple in
California, so it is automatically assumed that it was manufactured in
California.  The key word there is
designed.  In reality, there are many
components to Apple’s products.  Hundreds
of thousands of jobs are needed to ensure full of assembly of Apple’s
products.  The reality here is those jobs
are not located in the United States, the majority have been outsourced to
various other countries, such as Taiwan, Korea, and Mongolia.  There is a benefit from Apple for
everyone.  The conglomerate reaps the
benefits worldwide, whereas countries that Apple has provided jobs to now have
more money flowing into their economies. 
Apple, who hails from California has put the United States on the map
for being a leader in technological innovation. 
In the United States, many smaller companies were adversely affected by
Apple, in response, instead of keeping those companies out in the cold, Apple
chose to acquire them, positively contributing to the economies of scale.  There were also many foreign direct trade
investments that can be attributed to Apple. 
This is just one example out of thousands.  Not all of the outcomes are positive.  Because of its many components, Apple has a
severe interdependence on the nations who help manufacture and assemble its
products.  Another contrary case point is
equity distribution.  Apple comes with a
hefty price tag, in which many are willing to pay, but not all can afford.  This leads to financial inequality on all
fronts, both foreign and domestic. 
Globalization has led to both positive and negative impacts on the
United States economy.  The future most
certainly will bring new innovations, distribution, and resistance in this
area.

     When one hears the word globalization, the
first country that comes to mind is China. 
There are hundreds, if not thousands, of American companies that
manufacture their products in China. 
China has the world’s largest population and therefore globalization is
necessary for its economic growth. 
History suggests that China has been active in globalization from an
early time period.  In its early periods,
its factories supported its economy, as many of their products were in demand
worldwide.  Not only were the demand of
their products, but their workers willing to work more cheaply than others.  Factory workers in America and Europe often
blame China for stealing their jobs, (Hangzhou, Dec. 10, 2016).  The technological innovations that have
brought wealth to many nations has also had an unfavorable impact on many labor
based jobs.  New innovations, automation
firms have introduced has had a mixed impact on the economy.  China has developed these technologies that
will help factories reduce its workforce. 
While this is good for the company, the workers are left out in the
cold.  As other countries are getting
wind of this technology, they have reached out to China in an effort to
incorporate these systems into their operations as well.  Globally, this technology has created a
financial gain while locally they are sacrificing the well-being of their
citizens.  As previously mentioned, the
Apple Company, generates almost a quarter of its revenue from China.  Therefore the majority of its outsourced jobs
have been brought to China.  As some jobs
were being forced out due to automation, some bringing jobs back to the country
that has most benefited them in order to maintain an image of positivity in the
world of globalization.

     India has the second largest population in
the world and it would only be fitting that globalization has made an impact in
the country.  Although globalization has
been around for many documented years, India did not fully embrace what it
could bring to the table until 1991.  A
country in crisis will reach out by any means necessary in order to pull its
economy out of crisis.  In 1991, the then
Finance Minister, Man Mohan Singh, brought in a policy known as Liberalization,
Privatization, and Globalization, also known as The New Economic Policy in
1991, (Ilnu, Feb. 6, 2012).  Under this
policy, the value of the Indian currency was reduced, many public firms were
sold to private firms, and as with many countries Foreign Direct Investment was
implemented.  In India, agriculture plays
a vital role in the economy, globalization has provided a positive impact in
raising living standards, alleviating poverty, assuring food security,
generating a buoyant market for expansion and making a substantial contribution
to the national economic growth, (Ilnu, Feb. 6, 2012).  As with many other countries, India benefited
greatly from the technological innovations, and just as with other countries,
these technologies also reduced the need for various other workers.  Reforms of the financial sector constitute
the most important component of India’s program towards economic liberalization
(Ilnu, Feb. 6, 2012).  The inference of
globalization has allowed India to capitalize on imports and exports.  A leader in marine export, and an exporter of
many agricultural products, India is reaping small rewards.  India, in the long run, has seen its downside
to globalization.  Jobs are being
outsourced, the homeless population has increased, suicide rates have
increased, and compared to most economies, India has seen little improvements
in the areas of exports, global trade, and Foreign Direct Investment.  At this rate, the small benefit they have
seen will reverse and they may be in a worse crisis than what they were in when
the NEP was first introduced in 1991.

     It’s sufficive to say that globalization
has had a positive impact on the world’s economy.  In light of advanced technology, higher
demands from markets, and faster turnaround times, globalization has become a
staple for world commerce, (Rao, May 7, 2013). 
In the United States we take for granted what globalization has to offer
and often condemn it.  In the United
States it is often correlated with loss of jobs and/or way of life.  In fact, its positive impacts are evident worldwide.  More economies are operating on an even
kiln.  The introduction of globalization
has also led to an elevation in competition, thus the production of more
superior products and services. 
Globalization has helped countless individuals around the world to have
jobs, start their own businesses, put food on the table, and provide comfort to
their families, (Rao, May 7, 2013).  Many
countries have experienced negative impacts of globalization as well, from loss
of jobs due to technological advances, to increased individual taxes, and
countries increased interdependence on one another.  The one thing that is certain, even with all
of the given facts, globalization will continue to exist and prevail in the
world’s economy.

 

 

References

The Levin Institute.  The State University of New York. (2016). What is Globalization? Retrieved from http://globalization101.org/what-is-globalization

China and Globalization
(n.d). Retrieved from http://asiasociety.org/China-and-globalization

Hangzhou (2016, December
10). China has gained hugely from
globalization. Retrieved from https://www.economist.com/news/china/21711508-so-why-are-its-workers-unhappy-china-has-gained-hugely-globalisation

Ilnu, Ayush (2012,
February 6).  Globalization and its impact on Indian Economy: Developments and
Challenges. Retrieved from http://www.legalservicesindia.com/article/globalization-&-its-impacts-on-indian-economy-developments-and-challenges-1018-1.html

Rao, Andy (2013, May
7).  4
Positive Impacts of Globalization on World Economy. Retrieved from http://www.kstatecollegian.com/2013/05/07/4-positive-impacts-of-globalization-on-world-economy