EFFECTS OF GLOBALIZATION
December 2, 2013
Globalization and modernization play a major role in a nation’s development. Nations such as China and Vietnam have ventured into the global economic stage in order to preserve their future . Their government’s reform laws on global manufacturing and exporting has improved their economic growth. Globalization both brings a positive and negative outcome and greatly influences the course of the nation. In 1978 Chinas leaders reformed their economic policy in order to revitalize their stagnant economy. This had a positive effect on Chinas economic future. The reform included liberizing foreign trade and investment . This globalization event paved the way for foreign manufacturing companies to be able to operate in China. Pre 1978 life in china was plaque by poverty, famine, and income inequalities. The annual economic growth was 6 percent per year. After globalization economic growth went up to 9 % annually after 1978, and is now at an amazing 15% in the last few year( Hu & Khan, 1997). Another positive impact from globalization is the percentage of people living in poverty. As more factories were built ,more jobs were created reducing the people living in poverty from 270 million during the year of 1978 to 100 million in 1985. (Wikipedia,2013)
Chinas low cost of labor has propelled the nation’s economic growth into the new century, but in turn usually has a negative effect for the individual who is providing that labor. Factories such as Foxconn and Jabil are able to offer major corporation such as DELL, Apple, and IBM low price for labor and in turn usually translates to the laborer working long hours, unfair wages , and unethical practices by the factory. A recent probe by the Apple company has revealed in its investigations that one of factory that produces the Iphone 5 has broken many labor laws by making workers work 12 hours a day with only two 30 minute brakes six days a week...
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