Debating the Merits of Globalization

Debating the Merits of Globalization

Case Questions

1. Do you think globalization and MNE activities are creating problems for the world? What kinds of problems can you identify? What are the unintended consequences of international business?

2. Summarize the arguments in favor of globalization made by the business executive.

3. What kinds of government actions would you recommend to protect citizens from the potential negative effects of foreign MNEs conducting business in your country?

1 .I certainly think that globalization and MNE activities are detrimental to improving standards of living across the globe. As the article mentioned, historically almost 100% of the population was poor and that number has now dropped. I think that trading globally creates new jobs, higher wages, and has a lot of good consequences attached to it. On the other hand, some unintended consequences are lack of governing regulation, as we saw in the bank crashes that resulted in a major recession globally. More regulations need to be implemented so these types of issues do not occur. Also, environmental standards need to be raised, but as economies develop this should follow suit. Loss of jobs in the home market is also an unintended consequence, as the movement of a company to another market causes more unemployed in the home country. This then affects the home market as middle tier jobs are now going to a higher class and low level jobs are going to the middle tier jobs.

Some unintended consequences are the causing large disparity between the rich and the poor especially in developing and least developed countries. Another unintended consequence could be an increase in the figures of unemployed people in some countries after the movement of company to another country.

2) The Business executive makes a strong argument that globalization does not cause detrimental effects to society such as low wage labor, poor human rights, environmental rights, and poor living...