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Positive effect of globalization:
Globalization is inevitable as the world moves to a more dependent, integrated economy. Although there are negatives to globalization, there are also many positives to the situation.
Globalization redistributes wealth to formally poor countries. Because of this, the poor are actually doing better worldwide than ever before. Also, globalization allows for a freer market. Cheaper goods and a wider variety of goods are available due to cheaper labor costs and competition. Newly opened markets around the world create new opportunities for economic growth in the US.
One bad consequence is the increasing inflation rate. Globalization will make it harder for US companies to compete. When China pays their work force next to nothing, US companies have a higher cost of producing goods. This will cause more and more jobs to move overseas.
Pros, it will increase employment in a short time. and the trickle down effects might start stimulating the economy. Impose a quota limit, the quota limits the number of foreign products, which forces buyers to buy American-made goods. It may stops lay-offs that might happen if the foreign products were purchased instead of US.
Critics say quotas often lead to corruption (bribes to get a quota allocation), smuggling , and higher prices for consumers.
domestic producers have no incentive to improve quality or reduce costs, so in the long term they will still lose out to foreign good either b/c importers will establish assembly plants inside the country (this is what happened to Big 3 Automakers), or price/quality gap between domestic and imported goods will become so large that even quotas would not help (as it happened with clothes manufacturing in US)
Imported goods upon their entry into a country, a tax or tariffs are imposed .Tariffs are allow a country to make money, but they drive the cost of goods up for the consumer.
I see offshore outsourcing as a threat to the American...
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