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Globalization: Trends, Challenges and Opportunities Essay (Article)


The best response to the above question is that many citizens in the United States are underestimating their gains from globalization. International trade “is making it easier for many individuals to purchase a wide range of services and goods” (Broda & Weinsten, 2005, p. 1).

Benefits of Globalization

According to Broda and Weinsten (2005, p. 2), “the variety of international services and goods in the United States has increased significantly within the last three decades”. The increasing choice of services and goods satisfies the needs of many citizens. Standard National Measures of “prices and human welfare have failed to assign a value to variety growth in the country” (Broda & Weinsten, 2005, p. 2).

The authors explain why “such measures should analyze the benefits of globalization” (Broda & Weinsten, 2005, p. 2). This development has reduced the prices of various products. The researchers observed that the “global varieties were on the rise” (Broda & Weinsten, 2005, p. 2). The availability of cheaper products continues to support the country’s GDP. Many consumers “in the United States are paying over $260 billion to the country’s GDP” (Broda & Weinsten, 2005, p. 4).

Consumers in open markets have the potential to purchase a wide range of services and products. Many countries are currently exporting their products to the United States. Most of these exporters have achieved their economic goals. For instance, China has become “the fourth leading exporter in the world” (Broda & Weinsten, 2005, p. 5). Some countries “such as Argentina and Japan have also supported their economies” (Broda & Weinsten, 2005, p. 4). According to this study, the lives of consumers improve whenever there is a new product in the market. This development has “occurred because of the increasing level of substitutability between the existing varieties” (Broda & Weinsten, 2005, p. 5).

Importance of these Gains

The article “Are We Underestimating the Gains from Globalization for the United States?” offers accurate arguments that support international trade. I believe that such gains are important because they support the needs of many citizens. Many consumers are getting a chance to purchase different products in order to satisfy their demands. This practice “supports their goals and welfare” (Mrak, 2000, p. 6). This development also reduces the prices of various commodities and services. Every citizen will be able to afford such services and products. International trade “makes it easier for individuals to purchase superior products at cheaper prices” (Mrak, 2000, p. 7).

The researchers also “contend that the drop in prices and increase in variety has the potential to raise the welfare of a country” (Broda & Weinsten, 2005, p. 5). For instance, international trade “has raised the welfare of the United States by $260 billion” (Broda & Weinsten, 2005, p. 6). This amounts to 3 percent of the country’s Gross Domestic Product (GDP). Every country should embrace the power of international trade in order to emerge successful. International trade has the potential to support the changing demands of different consumers.

The authors have explained why “future studies should focus on the interaction between domestic and imported products” (Broda & Weinsten, 2005, p. 6). The wave of globalization has also supported different economies and societies. Every country should identify new business partners in order to achieve its goals. In conclusion, many people are underestimating the benefits of globalization and international trade. This fact explains why governments should export and import more products in order to support their citizens.

Reference List

Broda, C., & Weinsten, D. (2005). Are We Underestimating the Gains from Globalization for the United States? Current Issues in Economics and Finance, 11(4), 1-7.

Mrak, M. (2000). Globalization: Trends, Challenges and Opportunities for Countries in Transition. Web.

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IvyPanda. (2020, July 5). Globalization: Trends, Challenges and Opportunities. Retrieved from https://ivypanda.com/essays/globalization-trends-challenges-and-opportunities/

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"Globalization: Trends, Challenges and Opportunities." IvyPanda, 5 July 2020, ivypanda.com/essays/globalization-trends-challenges-and-opportunities/.

1. IvyPanda. "Globalization: Trends, Challenges and Opportunities." July 5, 2020. https://ivypanda.com/essays/globalization-trends-challenges-and-opportunities/.


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IvyPanda. "Globalization: Trends, Challenges and Opportunities." July 5, 2020. https://ivypanda.com/essays/globalization-trends-challenges-and-opportunities/.

References

IvyPanda. 2020. "Globalization: Trends, Challenges and Opportunities." July 5, 2020. https://ivypanda.com/essays/globalization-trends-challenges-and-opportunities/.

References

IvyPanda. (2020) 'Globalization: Trends, Challenges and Opportunities'. 5 July.

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