Introduction
Globalization has been a very hot discussion topic for decades. Many arguments have been given to explain the concept of globalization and how it began. More importantly, the of globalization has also been looked at from the perspective of benefits and burdens that it has on the world community.
Additionally, numerous arguments have been given for and against globalization in terms the impacts. This paper reviews several arguments used to explain contemporary globalization and its impacts on the American workers.
The arguments used to explain contemporary globalization
Several arguments have been given to explain for the contemporary concept of globalization. According to Vallas, Finlay, and Wharton, globalization refer to “the extension of economic activities across national boundaries, yielding networks of production, exchange, and consumption that embeds spatially dispersed regions of the world within a single, highly interwoven system” (316).
The three authors argued that contemporary globalization has allowed for the unrestricted movement of capital and work across the world. Furthermore, globalization contributes to the importation of cheaper products from foreign countries. Globalization also empowers employers in First World nations to access cheaper labor from Third World nations.
Proponents of globalization argue that it guarantees human freedom that enables individuals to make their own choices. A major argument for globalization has been that it facilitates transnational flow of good, services, money, and ideas. Proponents also assert that the liberalization of international orders allows individuals and nations to participate in the global economy and culture (Grewa 98).
Critics of contemporary globalization claim that it is a modern source of imposition of common global standards that constitute an empire. Though their confounded argument is not absolutely justifiable, globalization is thought to have an informal empire, as opposed to direct imperialism. Cohen is indifferent about the nature of the contemporary globalization.
He states that, whereas past globalization was characterized by exploitative elements, contemporary globalization focuses on human development and global advancement. Cohen points that the concept of modern globalization is exploitative in nature as it never delivers the promises offered (Cohen 6).
Cohen seems to refute claims that globalization is widespread in the world by pointing that the globalization idea is inaccessible for many poor individuals around the world (Cohen 166). He further pointed that, globalization is not exclusively bad or wrong, but it is a phenomenon that holds expectations and promises that widely remain unrealized.
The critics of globalization also note that it leads to income inequalities in the world. They attribute this to an increase in the gap between rich nations and poor nations. It is argued that, 100 years back, the rich countries were 10 times richer than poor nations.
At present times, the gap between rich and poor nation is 75 times. Proponents of globalization dismiss this notion by arguing that it is not a source of increasing inequality, but rather, a factor of some nations embracing the concept of globalization while others failing to do so (Arnold, 712).
How the concept of globalization has impacted on the American Worker
The United States corporations have been at the forefront in championing for globalization by establishing themselves across the globe as a way of increasing revenues. The US, just like other First World nations, has discarded workforce in search of cheap labor and less restrictive manufacturing laws.
For instance, in 1990s, America’s workforce within the manufacturing sector was outsourced, and to date, the only industry that is a job resource in United State is the services industry. From this trend of continued globalization, the American workers are vulnerable, and it is likely that the situation will not improve in the near future.
Globalization has had a great impact on the labor in unskilled sectors within the United States. It has increased foreign competition in the labor market and job flows. The impact of this has been increased job destruction and reduced job creation in almost all sectors within the economy (Kondo 47).
The most recent impact of globalization to the American worker is the income reduction. Notably, globalization has had two major impacts on American workers’ wages. The low-cost outsourcing of labor by American industries causes either job dislocation or wage reductions.
Moreover, it leads to changes in returns for labor inputs as relative prices within an industry reduce (Bivens 3). All this preposition has led to a reduction of wages for American workers, which affects the workers with limited skills (those without a first degree).
Conclusion
Arguments about modern globalization never end. In this case, people have different opinions about the various aspects of globalization. Proponents of globalization are quick to point that global integration is vital for human development and global advancement. However, critics are of the opinion that globalization has contributed to increased inequalities between the rich and poor nations in the world today.
The aspect of global integration has had some impacts on the American workers. The impacts have ranged from job losses to wage cuts, which have had an impact on income equality in the country. Globalization continues to increase in all countries around the world, and people should accept that it is hard to ignore the impacts of globalization.
Works Cited
Arnold, Roger A. Economics. Mason, OH: Thomson South-Western, 2008. Print.
Bivens Josh, L. Globalization, American Wages, and Inequality. Economic Policy Institute Working Paper. Washington, D.C.: EPI. (2007). Print.
Cohen, Daniel. Globalization and Its Enemies. London: MIT Press, 2005. Print.
Grewa David, S. “Network Power and Globalization”. Ethics and International Affairs. 17.2 (2003): 89-98. Print.
Kondo, Illenin O. “Essays on Globalization.” University of Minnesota, 2012. United States — Minnesota: ProQuest Dissertations & Theses (PQDT); ProQuest Dissertations & Theses A&I. Web.
Vallas, Steven P, W. Finlay, and A. S. Wharton. The Sociology of Work: Structures and Inequalities. New York: Oxford University Press, 2009. Print.