Pros And Cons Of A Globalize World

Pros and Cons of a Globalize World
This paper explores two similar views of the pros and cons of how Globalization fosters the economic growth and helps or helps not the workers. According to Held, D., the Globalization process is based on the development of economic, political, social and technological linked among the countries. In order to the world become globalize, it is necessary toimprove the barriers of interaction, communication and transportation between countries. The three major indicator of globalization are the followings: international trade in goods and services, the transfer of money capital between one country and another, and the movement of people across national borders. First of all, international trade means that countries become more interconnected in theprocess of importing and exporting goods. According to, World Development Indicator 2010, Tables 1.4 and 4.1, between 1950 and 2010, world trade grew 27-fold in volume terms. We can conclude that importing and exporting is becoming an even more crucial component of the economic activity. The second major indicator of globalization is the transfer of money across borders. This can take two forms: thefirst one is known as Foreign Indirect Investment, this one occurs when money is used as an investment in assets of another countries. These assets could be bonds, stocks or even currencies. Held, M. states that this activity has been increasing very rapidly in the 1990s the Foreign Indirect Investment was expanding at more that 20% per annum, helping to bring an integration of financial markets.The second form is called Foreign Direct Investment, occurs when an institution or a company established or improve the production of goods in another country. According to Batterson, R., U.S companies increased theirs investment in foreign countries more than 50 percent, from $613 billions in 1994 to over $980 billions in 1998. Finally, migration is the last indicator of Globalization. Accordingto the UN the amount of people living in a country for more than a year different from their country of birth is about 190 millions, which is about the three percent of the population. This meant that the migrant population had more than double in 25 years.
According to Batterson, R., countries that are linked to the Globalization process have higher economic grow rates than countries withclosed economies. It has been proof that open markets drives to an economic growth. In fact, between 1960 and 1990s the differences between countries that export large amount of good and services grew about 3% more than countries that export small amounts. Asian countries, which are considered the countries in favor of the Globalization between 1965 and 1998 annual export growth in averaged 10.5percent in East Asia, 16 percent in South Korea, 13,5 in China, also all of them had an annual average economic growth of over 8 percent. On the other hand, are those who considered Globalization to be positive only for global corporation at expenses of the workers and that always growth comes accompanied of instability and financial crisis. According to Weidenbaum, M., while the countries in favorof Globalization where experiences annual export growth over 13 percent and annual average economic growth of over 8 percent, on the other side of the world Latin Americans countries in the 80´s were having hyperinflation and economic depression. Also, in the same book he said that, not only debt in Latin America jumped from 14 percent to 32 percent, but in Russia and Euroasia the debt had thisincredible increase from 3 percent to 28 percent of GPD.
Another point of discussion for Globalization according to Weidebnaum, M., is its effect in the workers, both in the developed and third world countries, argues that this deteriorates and destroys jobs and wages, and therefore severely affects income and consumption capacity of the population.
Reality seems to agree with critics of...