Globalization

Mark Broderick

Mark Harvey

MSM 532

24 January 2013

What is the Advantage of Globalization?

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Globalization allows the idea of comparative advantage to benefit the involved countries. Comparative advantage is a fundamental element in economics. The efficiencies of different countries specializing in their own comparative advantage outweigh the negatives of globalization. However, there are many other reasons that globalization could be considered good.

With current technology and advanced communication, our world is now like a nation. Labor and product exchanges have become more common with modern computers and software programs to help with outsourcing to countries that can produce cheaper products in different countries who can return products at lower costs. During the last two decades, the number of people living in extreme poverty decreased, from 1.5 billion to 1.1 billion, while the globe population has increased. The world is a single place and globalization does nothing but helping interaction between different people from all over the planet, bringing them closer than before.

The process of globalization has defined the development of the world economy during the last couple of decades. This is not limited by the economic sphere only. It is obvious that even though the process of globalization was stimulated by the growing economic cooperation between countries, at the present moment economic integration of countries contributes consistently to the political and cultural integration. As a result, countries start to form international alliances and unions, such as the EU, which overcome national borders. The number of international organizations, such as WTO, that facilitates economic, political and cultural relations between countries is constantly growing.

What is the advantage of globalization is my question that I am most curious about. Understanding the world has changed since I entered the job market, how this...