Impact Of Globalization On The Economy Essays

1086 Words Nov 5th, 2015 null Page
The impact that globalization has, and will have, on the U.S economy continues to be one of the most debated economic issues of our times. Many people believe that due to the international trade there are less jobs and lower wages for people. However international trade is important to the American economy and to the economy of the world as whole because neither the United States nor any other country in the world has everything that its people need and want. This fact alone makes trade necessary. If every country in the world had resources sufficient to meet its people’s needs and wants, there would be less of a need for trade however countries do not have such resources. For instance, japan does not have oil. The United States does not have diamonds. The United Kingdom does not have land or the climate needed to grow all the food for its people. Due to this trades are necessary for countries. In order to have every resources that they need. In addition, different countries have different comparative advantages. This makes trade important. For example, the US could, if it wanted to, trade much less. For instance, it could require that all of its clothing be made within the country. The problem is that this would be a waste. American workers are generally more skilled and more educated and would be wasted on low value-added work like making clothes. Therefore, it is better for the US to devote its resources to more valuable goods and services and let people in…

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