Essay on Fast Trade Is The Key Of Globalization

760 Words Apr 27th, 2016 4 Pages
Fast trade is the key of globalization. Through international trade, people have access to products that they can’t find in their own homeland, It might sound beneficial using comparative advantage and being more efficient but when we are living in a developed country and we get all these products for our satisfaction at low prices, we don’t see the other side of globalization and get to experience the hard work that was put in to get a $6 shirt in Wal-Mart. On one hand, globalization is offering new opportunities, economics growth, development, and a better lifestyle. While, on the other hand, it is posing challenges in other countries.

Wal-Mart is a Transnational Corporation (TNC), with the goal of expanding to increase its profit regardless to the circumstances. Giant TNCs, like Walmart, that want to increase their sells require foreign exchange market in order to expand its stores, purchase cheaper products in different currencies and then sell those goods in US at low prices, and pay their employees in their local currencies.

Today, over ninety five percent of the clothing and toys sold in the US are made overseas, primarily in sweatshops in Asia. Walmart demands their subcontractors to produce their goods at minimal cost with no doubt for their employees working in dangerous conditions and getting paid below poverty wage. (Barbara Kenney, How Goods are Produced, May 8,2013). Subcontractors agree to work for minimal cost for walmart because they won’t have long…

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