Wall Street Journal Summary

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Michael Leigh
Article Summaries
9-5-10
Trading Barbs: A Primer on the Globalization Debate
Globalization of world trade is a long term event that has been increasing living standards and overall economic welfare for many nations. However an increase in the number of job loses in industries that are exposed to international competition causes some people to dislike the effects of globalization. Angus Maddison believed that economic advancement over time was sustained by conquest or settlement of relatively empty areas that had fertile land, new biological resources or a potential to accommodate transfers of population, crops and livestock; international trade and capital movements; and technological and institutional innovation.

Benefits of globalization stem from the benefits of free trade. Comparative advantage can create a beneficial outcome for all nations involved in trade. International income has increased household income by 7,000-1,300. Another benefit is the increase in the variety and price of goods and services available to consumers.

Negative effects of globalization can be dampened by temporary assistance for declining industries. Short term assistance in the form of unemployment insurance and long term assistance in the form of education can very effectively combat negative effects of globalization. In fact, the percentage of educated workers has risen from 6% at the end of WWII to 33.3% today. The need for skilled workers in America may mean that some people lose jobs however it also gives people the opportunity at more advanced higher paying jobs and increased living standards.

Think Again: Globalization
Globalization has both critics and boosters, the critics think globalization causes the same problems as its booster’s claims it solves. One thing is for certain globalization is here to stay. In this article many ideas about globalization are debated.

The first idea is that globalization is a casualty of the economic...
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