The Economic Benefits of Globalization Essay

1105 Words 5 Pages
Everybody's talking about
Bagism, Shagism, Dragism, Madism
Ragism, Tagism, this-ism, that-ism
Ism ism ism

All we are saying is give peace a chance

Lyrics from the song, "Give Peace A Chance" by John Lennon

Is globalism just another "ism" to be feared and loathed? Despite some negative effects of globalism, or globalization, we need to recognize the potential of globalization to help achieve global economic prosperity.

Globalization is the increased integration of world markets for goods, services, and capital. Economic Globalization has been strongly supported and opposed for a variety of reasons. This stress on a foreign market, though not supported by everyone, is a very positive way for a national
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There are also capitals and labor flows, in which production facilities are set up internationally and labor may enter a country through immigration. Several multinational corporations are established through these capitals and labor flows, resulting in sizable production and distribution activities in other countries. Examples of this consist of Toyota (Japan), Nestle (Switzerland), and Coca-Cola (United States). Information and technology flows are also beneficial in advancement for all countries involved, in that businesses may incorporate technology developed from abroad. Finally, there are financial flows, which involve money transfer for paying for imports, buying foreign assets, paying interest, and providing foreign aid. The U.S. imports and exports have increased in volume and have greatly increased as a percentage of GDP since 1975.

A very important aspect of international trade is specialization. Specialization is a productive method is boosting a nation's economy through the ideas of a comparative advantage one country one country may have over another. "A nation has a comparative advantage in some product when it can produce at a lower domestic opportunity cost than can a potential trading partner."2 By evaluating one country's comparative advantage over another, each country can achieve a larger total output with

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