Shiran Zecharya
GVPT200
Blog #4: Trade/Globalization
Globalization is undeniably changing the nature of the global economy; markets have expanded across political borders, international trade has flourished, and manufacturing has become more efficient and productive. For these reasons, many analysts have come to applaud these processes of economic change and conclude that the phenomena holds a great deal of promise for the future of the international political economy. There is, however, a dark side to globalization that liberal economists have observed: the rapidly growing inequality between the global rich and poor. As a result of expanded markets, firms are drawn to conduct business in low-income nations in order to reduce costs and maximize their profits. By doing so, these companies not only exploit workers who often lack the protection of basic worker rights but also foster a proliferating global wealth gap.
This year, many began to question the benefits of globalization following a building collapse in Bangladesh that killed over 1,000 garment factory employees. The incident gave new fuel to the debates about how increased trade and expanded markets may impact worker safety and contribute to global inequality. Corporations often follow the lowest wages abroad in seek of greater profits in response to the economic changes brought on by globalization. In countries where wages are exceedingly low, such as Bangladesh, worker safety is almost never a priority, and the human cost can be tremendous. Furthermore, when corporations accept low wages and neglect worker safety to increase their profits, the divergence between less developed countries who manufacture goods and wealthier nations who consume the goods grows while the hope of increased global equality recedes.
The overall impact of globalization hard to calculate, given that, in addition to its destructive elements, global trade has led to astonishing growth, interdependence, increased creativity and other immeasurable benefits. What can be taken as a mixed result of the debate of the costs and benefits is a formula for improvement. World leaders must understand the limitations of globalization to regulate the expansion of trade and ensure that it is mutually benefitting all parties. Additionally, corporations cannot continue to disregard labor rights in order to generate more revenue. Consumers must also demand fair labor practices from companies and apply pressure on ones that fail to do so. Inequality is not only a local issue, but also a global issue, therefore, all individuals in the international economy must work together to mitigate the global wealth disparity and questionable labor practices brought on by globalization; the result: a newly interconnected world driven by technological innovation and newfound interconnectedness but grounded in principles of morality and equality.
So what do you think can be done to try and boost labor conditions abroad? Neo-liberals tend to think that this will happen naturally and that conditions today are better than before trade.
ReplyDeleteI agree with your argument that in spite of it's benefits, globalization can also have negative impacts. You made a great point by stating that globalization creates the want of higher profits for corporations, which leads them to produce their products overseas where they have lower costs. Like you mentioned, that results in exploiting workers to save costs and increase profits. Also, this shift of employment overseas often results in higher unemployment in the original country where the corporation was founded and is more prevalent.
ReplyDeleteYou definitely make a strong argument regarding the "dark side" of globalization, which I think far too often goes unannounced. With regard to corporations minimizing their marginal costs by exploiting the cheap labor of other countries, I think that it is important for an international corporation to impose regulations regarding the standards of minimum wage and welfare.
ReplyDeleteHow do you think these regulations would be enforced? Would the UN implement these regulations and enforce them or would it be the responsibility of that individual state to handle the situation? I agree that globalization does have a "dark side" and needs to be fixed like you said.
DeleteAmanda, I think it needs to come from both the domestic side and the international side. I do not think it is that easy to force states to raise their working standards, though. I also think the consumer base in the US and the media can play a role by drawing attention to corporations who engage in questionable labor practices.
DeleteI completely agree with your argument and Sarah that many states including the U.S. exploit cheap labor in other countries and as long as they are profiting, pay no attention to the conditions in which their laborers work. This is how sweat shops come about and develop and how child labor is extorted. As long as the wealthy are continuing to earn money they care less and less about the poor which widens that gap. Amanda I believe it is up to the UN and the individual countries to work together to implement policies that protect the rights of workers.
ReplyDeleteI definitely agree that globalization is not necessarily a good thing. Clearly you have stated some moral issues that have come with this process. Like Yasemin stated above there is also the problem in the domestic country where unemployment begins to rise. Do you think that maybe by finding a way to controlling minimum wage around the world, unemployment can be reduced as well as solve the worker safety issues?
ReplyDelete(your profile pic chrissy....) yeah the domestic side of outsourcing is definitely an issue too! One of the most troubling examples of cities that have fallen victim to corporations' greed brought on by globalization is Detroit; homes across the city have been abandoned and unemployment is ubiquitous as a result of many manufacturing firms moving their companies to Mexico and other countries in pursuit of cheap labor. I think that promoting an international standard for minimum wage would be a really hard task but it is definitely necessary that consumers apply pressure on companies who fail to meet basic worker safety standards.
DeleteI like how you said that inequality is not only a local issue but also a global one and I completely agree because sometimes we are so wrapped up in our national situations and forget to think about issues such as the Bangladesh one you presented. That example is a huge eye opener because it really shows that there need to be more policies implemented to try and put an end to the injustice going on in other countries.
ReplyDeleteI find your argument to be very compelling, and strongly agree with the belief that globalization has a dark side, and I had many similar examples within my blog. However, I think you failed to mention how the media has overshadowed this negative aspects of globalization and how they glorify international cooperation and trade, any thoughts?
ReplyDeleteUsually when we think about globalization, we think about technology and the positive aspects it has had on our lives to make it easier, but your points about the "dark sides" are really strong. You bring to light an issue that may not immediately come to mind when thinking about globalization. It is definitely detrimental, but how do you suggest improving the moral aspects and disadvantages that come along with globalization?
ReplyDelete