Economic Globalization; Haley Tells It The Way It Is.
One positive impact of Economic Globalization is that there is lower production cost such as cheap labor and cheaper raw material.
Globalization enables goods to be produced in different parts of the world. Some countries might have resources and cheap prices that other countries don't have and globalization makes global corporations take advantage of this. Another positive impact of Economic Globalization is that it causes increased investment.
Globalization has made it easier for countries to attract investments. Investments by multinational companies can play a big role in improving the economy of developed (USA, England, Australia) and developing countries (Vietnam, Mexico, Philippines). One negative impact of Economic Globalization is that labour rights and environmental concerns are usually ignored.
For example, workers in China are being abused and exploited in sweatshops for cheap labour and forests are being cut down to maximize the multinational companies' profits. Another negative impact of Economic Globalization is that free trade can harm developing countries.
Free trade benefits developed countries much more than developing countries. For example, the owner of a fruit company (developed country) will earn much more than the farmers growing the fruit in developing countries. This can harm developing country's economies because most of the profit from multinational corporations go to the owners of these corporations, mainly in developed countries. One solution for the negative impacts of Economic Globalization is for companies to use fair trade.
This can solve free trade harming developing countries because fair trade is when trade between companies in developed countries and producers in developing countries in which fair prices are paid to the producers. This makes the living standard of those working in developing countries higher.
A final solution for the negative impacts of Economic Globalization is for the government to make legal controls on sweatshops such as minimum wage or the maximum hours that workers can work per week. This can stop workers from being exploited for multinational corporations' profits.