World Citizenship

Assignment Instructions:
As you read the required readings; “Costs and Benefits of Globalization” and Marshall McLuhan Foresees “The Global Village”, summarize the effects that globalization has on our country.  Also, how do the two readings come into play with what we are experiencing today with the COVID-19 pandemic?

Costs and Benefits of Globalization- Tejvan Pettinger
Globalization is a complex and controversial issue. This is a look at some of the main benefits and costs associated with the greater globalization of the world economy.
Definition of Globalization – the process of increased integration and co-operation of different national economies. It involves national economies becoming increasingly inter-related and integrated.
Globalization involves:
Greater free trade.
Greater movement of labour.
Increased capital flows.
Growth of Multi-national companies.
Increased integration of global trade cycle.
Increased communication and improved transport, effectively reducing barriers between countries.
Benefits of Globalization
1. Free Trade Free trade is a way for countries to exchange goods and resources. This means countries can specialize in producing goods where they have a comparative advantage (this means they can produce goods at a lower opportunity cost). When countries specialize there will be several gains from trade:
Lower prices for consumers
Greater choice of goods
Bigger export markets for domestic manufacturers
Economies of scale through being able to specialize in certain goods
Greater competition
2. Free Movement of Labour
Increased labour migration gives advantages to both workers and recipient countries. If a country experiences high unemployment, there are increased opportunities to look for work elsewhere. This process of labour migration also helps reduce geographical inequality. This has been quite effective in the EU, with many Eastern European workers migrating west.
Also, it helps countries with labour shortages fill important posts. For example, the UK needed to recruit nurses from the Far East to fill shortages.
However, this issue is also quite controversial. Some are concerned that free movement of labour can cause excess pressure on housing and social services in some countries. Countries like the US have responded to this process by actively trying to prevent migrants from other countries.
3. Increased Economies of Scale.
Production is increasingly specialized. Globalization enables goods to be produced in different parts of the world. This greater specialization enables lower average costs and lower prices for consumers.
4. Greater Competition
Domestic monopolies used to be protected by lack of competition. However, globalization means that firms face greater competition from foreign firms.
5. Increased Investment
Globalization has also enabled increased levels of investment. It has made it easier for countries to attract short term and long term investment. Investment by multinational companies can play a big role in improving the economies of developing countries.
Costs of Globalization
1. Free Trade can Harm Developing Economies.
Developing countries often struggle to compete with developed countries; therefore it is argued free trade benefits developed countries more. There is an infant industry argument which says industries in developing countries need protection from free trade to be able to develop. However, developing countries are often harmed by tariff protection Western economies have on agriculture. Paradox of Free Trade
2. Environmental Costs