Updated:

Globalization: Ethical and Economic Aspects Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Globalization has several advantages, including ease of communication and transportation, cultural exchange, and new business possibilities. However, global economic interdependence has reduced the flexibility of the international financial system. Considerations regarding the effects of globalization on economic segregation have emerged. Analyzing the benefits and costs of globalization can give valuable insights into what actions governments, companies, and individuals can take to make the system stable and fair.

Though globalization provides opportunities for economic growth, the process suffers from imbalance. While big companies, developed countries, and wealthy individuals benefit from the financial possibilities of diversifying businesses and industries, their less successful counterparts often bear the negative consequences of unimpeded growth (Gray, 2017). Some of the causes are the different economic start points and unethical decisions in using cheap labor, relocating manufacturing plants, and using vulnerable populations to increase company profits.

Global economic inequality raises ethical questions regarding the responsibility of the rich. Trade liberalization only benefits one party at a time and vows a trading system that works in the interests of all participants (Targema & Msughter, 2017). Companies like Starbucks often use the tools of globalization to avoid their responsibility as large taxpayers (Gray, 2017). Governments do not get sufficient taxes to support their systems, while individuals may experience wage disparity and be forced to work in unfair conditions. Businesses should work with governments to develop transparent and efficient taxation. Countries must develop laws to regulate the economic and ethical effects of globalization on individuals’ financial situation and work rights.

A stable financial system is the backbone of globalization as it ensures a steady flow of capital and guarantees safe and predictable financial operations. Disasters, such as the 2007-2008 global financial crisis, can disrupt worldwide economic activity. The market crash resulted in financial problems in Europe and the United States, causing debt crises, unemployment, and financial instability (Amadeo, 2022). In the United States alone, $1.488 billion had to be spent under the American Recovery and Reinvestment Act of 2009 (Amadeo, 2022; Duffie, 2019). It is the responsibility of the wealthy and powerful to ensure that such crises do not happen again.

Though globalization allows for an accumulation of wealth by governments, firms, and individuals, an ethical distribution of this wealth should be addressed. The potential repercussions of excessive liberalization of economic activity have already been felt worldwide. It is vital to ensure that globalization’s negative economic and ethical consequences do not outweigh its benefits.

References

Amadeo, K. (2022). . The Balance. Web.

Duffie, D. (2019). . Journal of Economic Perspectives, 33(1), 81–106. Web.

Gray, A. (2017). World Economic Forum. Web.

Targema, T. S., & Msughter, A. E. (2017). . [PDF document]. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2024, May 25). Globalization: Ethical and Economic Aspects. https://ivypanda.com/essays/globalization-ethical-and-economic-aspects/

Work Cited

"Globalization: Ethical and Economic Aspects." IvyPanda, 25 May 2024, ivypanda.com/essays/globalization-ethical-and-economic-aspects/.

References

IvyPanda. (2024) 'Globalization: Ethical and Economic Aspects'. 25 May.

References

IvyPanda. 2024. "Globalization: Ethical and Economic Aspects." May 25, 2024. https://ivypanda.com/essays/globalization-ethical-and-economic-aspects/.

1. IvyPanda. "Globalization: Ethical and Economic Aspects." May 25, 2024. https://ivypanda.com/essays/globalization-ethical-and-economic-aspects/.


Bibliography


IvyPanda. "Globalization: Ethical and Economic Aspects." May 25, 2024. https://ivypanda.com/essays/globalization-ethical-and-economic-aspects/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1