What You Need To Know About Globalization

Let us take a look at an issue that is constantly seen in the news, this would be the issue of outsourcing. When Nike first started outsourcing jobs overseas people were outraged. They were giving away American job just to make a few extra bucks and people were simply not happy about it. So how is this form of globalization even possibly a good thing? An argument that would support this aspect of globalization would be that by shipping jobs overseas countries in our economy are able to better maximize profits and thus help to grow our economy. Well this sounds all well and good but how long is it going to be until we see some of these gains in our economy? Are we not taking advantage of people overseas by paying them next to nothing? If one of us went to work one day and found out that our job was lost to outsourcing we can be sure that we wouldn’t be content with someone telling us that it was going to benefit the economy as and whole and eventually increase the standard of living. No. We would be miserable because we were now out of a job and among the unemployed; a person doesn’t live off of future gains. Now when deciding whether or not we are taking advantage of those “less fortunate” overseas by paying them so little we need to look at real wages.

Though it seems that we are taking advantage of people overseas and forcing them into sweatshop labor we are in fact increasing their real wage. Due to this increase in real wage the price of labor increases and we see a shift from longer hours of leisure to longer hours at work. This explains why people work so long at their jobs overseas. They want to work. Though this may explain that we are not taking advantage of people, we still see a loss of American jobs. Though we are seeing a loss in jobs, Bhagwati claims that we have “…actually raised the real wages of the workers.” He claims that the lower jobs are being outsourced and we are creating better jobs through and increase in education and technology. So is a part of globalization that needs fixing. If so, how do we do this?

If globalization causes an increase in real wage overseas and an eventual increase in the economy through the sacrifice of American jobs, how is it that we can stop the loss of these jobs and still maintain the benefits from globalization? This clearly needs some kind of fixing. One way that we could help with the loss of jobs would be to compensate those that lost their jobs from a clear from of outsourcing until they are able to get back on their feet. This is already done through programs provided by the U.S. government though it is often hard to make a clear distinction when it comes to the manner in which a job is lost.

Along with benefits form globalization there are also other areas that need fixing. A problem that we can see clearly results from globalization is the problem of illegal immigration from poor countries to rich countries. Through globalization, it has become easier and more beneficial for people living in a poor country to move to a country with a stronger economy. This is especially true when looking at the movement of people from Mexico to the United States. So why don’t we just open up our boarders and make it legal? If we were to simply open up the boarders between the U.S. and Mexico our economy would be obliterated. There would be a huge rush from into the U.S. by people waiting along the boarders. This huge rush of people would suck our economy dry, leaving us in a far worse condition. We are therefore presented with the problem of what to do with preventing illegal immigration. It used to be that most of our illegal immigration from Mexico came for people crossing the Rio Grande though it now comes from a different form. Bhagwati says that 50 percent of illegal immigrants now come form legal means such as visas. They enter the country legal and stay illegally. We know that it is impossible to eliminate illegal immigration so what do we do about it? He explains that to fix this problem “governments in the developed countries must turn to policies that will integrate migrants into their new homes in ways that will minimize the social costs and maximize the economic benefit.” This is a problem that will not only result between Mexico and the U.S. but also other countries as well.

 

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