Benefits And Implications Of Globalization

1666 Words 7 Pages
Globalization allows for goods and services to be exchanged in a globally interconnected economy. It has been around for centuries. However, in the last few decades its effects on the stratification of socioeconomic classes has become more and more apparent. The divide between classes has been a topic of interest for many sociologists such as Karl Marx, who defined two distinct classes: the bourgeoisie and the proletariat. However, most sociologists deem this stratification oversimplified. This globally interconnected economy has been revealed to play a large role in the complexification of classes, that is, it facilitates the existence of more than two general classes. Even though globalization has its benefits, most are of them enjoyed by …show more content…
Marx defines one’s class through the source of their income as opposed to the amount of their wealth. By his definition, the bourgeoisie, which is concerned with property values, is made up of those who own the means of production (Cohen & Kennedy, pg. 164). Globalization offers a variety of options for these corporation owners to increase profits, for example through outsourcing. Outsourcing allows for corporations with enough capital to invest in already existing companies without having to put money into building their own factories to manufacture their goods. By buying the products from these companies, this reduces costs for the corporation by eliminating the cost of building and running their own factory. For instance, an American company could outsource certain materials to a Chinese company and buy these materials from them for a less than what it would take to run a factory of their own. Corporations can also choose to offshore in order to make a greater profit. …show more content…
As jobs become more and more scarce for the working class of an area, people who do not possess the means to relocate and find better jobs are forced to stay where they are and accept low-income jobs. This situation is common in poorer countries in Asia, Africa, and Latin America where families are often left behind in poverty. This kind of urbanization is the leading cause of the growth of slums. Some of the characteristics of slums are insufficient living space, access to sufficient clean water and essential amenities, overpopulation, and high crime rates. Many countries, in an attempt to make up for shortfalls, may take out loans from the World Bank. But according to Ehrenreich, “To qualify for loans, governments are usually required to devalue their currencies, which turns the hard currencies of rich countries in gold and the soft currencies of poor countries into straw,” (Ehrenreich, pg. 180). In other words, when poorer countries try to save themselves from poverty, it only digs them into a deeper hole. The occupants of slums usually tend to be people of color, or non-white people. In countries where there is a distinct contrast between the upper class and the lower class, the process of gentrification is often to blame for this. When rent and housing prices get too high, it becomes hard for poorer

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