Pros and Cons of Globalization

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Pros and cons of globalization

Department:

International Management

Lecturer:

Prof. Dr. Henkel and Prof. Dr. Perlitz

Name:

Shi Zhun

Student ID:

1223396

Date:

29/Oct/2008

Table of Contents
Page Number

1. Summary...………………………………………………...…………...3 2. Introduction……………………………………………………………4 3. The definition of globalization…………………………………...........4 4. Economic growth (pros and cons)……………………………………..5 5. Worker (pros and cons)………………………………………………..7 6. Consumer (pros and cons)……………………………………………..9 7. Human rights (pros and cons)………………………………………...11 8. Conclusion…………………..………………………………………..13 References…..…………………………………………………………..14

Figure 1 Growth in Volume of World Merchandise Trade and Gross Domestic Product, 1994-2004 (Annual Percentage Change)………………………………………...........6 Figure 2 Job Creation in the U.S. and the EU ………………………………...……...8 Figure 3 The positive immediate impact of exports on the quality of life of the country’s residents………………………………………………..……………...…..10 Figure 4 Distribution of Economic Freedom………………………………………...12

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1. Summary
Globalization is changing the way we live our lives every day, from reading news over the Internet to getting the latest stock quote or sports score. In the world at large, technology and open markets are creating a global economic system that often seems to exceed the power of government itself. In addition, Globalization is still one of the most popular words of our time and it plays an important role in the world. Trillions of dollars move effortlessly around the world everyday, across national borders in the blink of an eye. Cross-border investment and technologic process are fueling this “new economy” that is lifting hundreds of millions of people from abject poverty into the middle class. However, there are both winners and losers in the global economy, generating heated debates. Many factors, such as politics, economy, culture, and technology, can make the effect of globalization complex. Although globalization have some negative effect on economic growth, worker, consumer and human rights, the pros of globalization on every aspect of our lives are much more obvious.

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2. Introduction
Globalization is an influencing force everywhere in the world. It makes us more aware that, along with the prescriptive slogan ‘think globally, act locally’, there must, as so aptly put by Hogan (1996), be the additional critical observation that we also ‘think locally, act globally’. As increasing people have realized the huge influence of globalization on our everyday lives, globalization has primarily become a fiscal term, and its impact is not limited to the economy of the countries only as well as the term globalization actually refers to every aspect of life like cultural, social, psychological and of course, political (Peter and Wu, 2005).

The growing importance of economic ties, innovations in transportation and the revolution in communications have sped the global transmission of new technologies, new ideas, and new diseases, such as, SARS (Kent, 2003). Because of globalization, hundreds of millions of people from abject poverty into the middle class, as well as there are lots of losers in the global economy. The debates are strong and fierce for and against globalization both in the media and more informally, about advantage and disadvantage of globalization. In order to increase our understanding of its influence, this paper discusses pros and cons of globalization, with particular reference to the definition of globalization, economic growth, worker, consumer and human rights.

3. The definition of globalization
To fully understand globalization, we must look at its definition first. People around

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the globe are more connected to each other than ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International...
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