Is globalization a good thing or abad?

Answer 1

This question has been debated by lots of economists.

The good of globalization

1. The coffee cup example: Look at your coffee. Think about how many people were involved in making of this cup of coffee. The farmer in the coffee belt; the drivers/ pilots who delivers the coffee, the factory workers who package the coffee, the technicians who make the machine for all of the above... Globalization has made that cup of coffee possible.

2. Because countries are economically dependent on one another (for example: EU), wars are less likely to happen.

3. General increase in the standard of living especially in developing countries

4. For firms: able to cut costs because they can access cheaper labors, lead to a decrease in price

5. Access to lots of goods that was previously inaccessible

6. Able to innovate/share technology

7. Economic integration also leads to racial and cultural integration => promote diversity and multiculturalism

The bads

1. Because economies are so inter-twined, a crisis in one country can jeopardize the world as a whole (The Greece crisis)

2. Because laws and regulations in countries can differ, possible human rights violation by firms (sweat shops in China)

3. As the world moves to "free trade", there will be winners and losers (although winners win more than losers lose.)

Overall, most opinions agree that the benefits of globalization is more than the limitations. However, it is true that the biggest benefactors from globalization at the moment is rich developed countries.