Impactof Globalization on Trade and Employees
Globalizationhas been one of the most popular concepts in the contemporary humansociety. It underlines the process for international integration thatemanates from the interchange of products, world views, ideas, aswell as other cultural elements of aspects. It may also underline theintegration and interaction process among the government, people andinstitutions of different countries, primarily driven byinternational investment and trade, and aided primarily byinformation technology. Globalization is extremely crucial to theexport and import of commodities from across the globe. Indeed,increased integration often allows for the opening up of borders inwhich case commodities can move from one country to another. Indeed,globalization came up as countries strived to create easy ways oftrading items and goods. The increased interaction of individualsfrom different parts of the globe has allowed for integration ofcultures, politics and economies for a long time. Its impact has notonly been felt by individuals and nations but also multinationalcorporations as they have the capacity to access other markets. Ofparticular note is the fact that the new markets immensely supportthe global economy as a result of the increased earnings from thesame. While there may be differing opinions, it is evident thatglobalization has a positive impact on trade between countries andemployees, in which case it should always be supported andmaintained.
First,globalization enables for the access of new markets, whichessentially is extremely helpful to people. Scholars haveacknowledged that every part of the globe has things, technologies,and commodities that are distinctive from those found in otherplaces. This means that some places will be lacking of commoditiesthat can be found in other places (Goldinand Reinert42). For instance, technologies such as computers and the internetwould have been relegated to parts of the world. However,globalization has allowed for companies to extend their reach toother parts of the world, thereby opening new markets and assistingindividuals to obtain commodities that they would not have had. Inessence, new companies and businesses have been established in otherparts of the world (Hutchens,2009).This has a double positive effect. First, such establishments wouldcreate employment as the companies would need workers in variedlevels. Secondly, in instances where such companies offer servicesand commodities similar to those offered by companies already in thestate, there will be an increase in competition. This would bebeneficial to consumers as it allows for increased efficiency andquality of products and services, as well as a reduction in theprices at which the goods are offered (Weinstein45).
Inaddition, globalization allows for increased communication,interaction, as well as sharing of opportunities between dealers andconsumers, which, eventually, promotes trade. Scholars haveparticularly acknowledged the limited nature of informationpertaining to opportunities in particular parts of the globe(Weinstein35). Indeed, it would be extremely difficult for individuals andcorporations to know the most efficient mechanisms for exploitationof particular opportunities without being on the ground and spendinga considerable amount of time in such places. This would not only becost-prohibitive but also consume immense amounts of time, whichcompanies and corporations may not necessarily have at their disposal(Hutchens43). In essence, the only viable, cost-effective and time-savingaction would involve sharing information with corporations that arealready on the ground. Of particular note is the fact that thecorporations do not necessarily have to be competing, rather they maybe complementing. For instance, the current corporations may engagein exploration of minerals in particular areas, while the new onesengage in mining (Hutchens39).Others would undertake refinery and processing of the minerals, whileothers undertake marketing. This would, essentially, create moreemployment in the affected areas and even enhance infrastructure.
Further,globalization is seen as extremely helpful to the economic wellbeingof countries. It has been noted that such interaction and integrationwould enable for increased movement of goods across national borders.Needless to say, the sale of commodities in places where they are notproduced is bound to not only create employment but also allow forincreased profitability for the same. This means that countries,corporations and business entities would reap more profits withglobalization than without it. On the same note, globalization wouldallow for an increase in export and import of goods and services(GoldinandReinert38). Marketers often travel to varied parts of the world in an effortto set their sight on new opportunities for their products andservices. This often involves importing or exporting thesecommodities across borders. Such activities would be extremelybeneficial to countries as they often place some import and exportduties on these commodities. Indeed, they are bound to make quite anamount of income from increased imports and exports, not to mentionthe fact that such exports would result to an inflow of foreigncurrencies (GoldinandReinert47). This not only promotes trade but also creates employment for theinhabitants of that country. Of particular note is the fact that theincrease in the number of opportunities would result in increasedincomes for employees, in which case globalization would bebeneficial to them in that respect.
Inconclusion, globalization has elicited mixed reactions from a widerange of sectors of the society. Indeed, there has been controversyregarding the effects of globalization on countries, their trade oreven the inhabitants or workers in those particular entities. Whilethere may be differing opinions, it is evident that globalization isextremely beneficial to global trade. Indeed, it allows forcommodities that are not available in certain parts of the world tobe accessed in the same through increased exchange and trade(Hutchens29).It goes without saying that different parts of the world producedifferent commodities and services, which means that they ultimatelyhave gaps. These gaps can only be filled through trade, which canonly be possible through increased sharing and interaction. On thesame note, globalization enhances imports and export of goods andservices across countries (GoldinandReinert56). This is extremely beneficial to corporations, countries andindividuals as it results in increased trade, income and employment.Further, such increased interaction would allow for more peacefulco-existence as the interacting parties would likely have betterknowledge of the cultures and policies of the other party, not tomention the fact that there would be considerably high stakes.Further, new markets would be opened in the long-term and theshort-term, which increases the employment opportunities for the twocountries. Increased employment means that there would be an enhancedGPD for the countries, as well as increased incomes for individualemployees especially in the long-term.
Goldin,Ian, and Kenneth Reinert. Globalizationfor Development: Trade, Finance, Aid, Migration, and Policy.Washington, DC: World Bank [u.a., 2007. Print.
Hutchens,Anna. ChangingBig Business: The Globalisation of the Fair Trade Movement.Cheltenham, UK: Edward Elgar, 2009. Print.
Weinstein,Michael M. Globalization:What`s New?NewYork: Columbia Univ. Press, 2005. Print.