Has the Impact of Globalization on the State been generally Positive or

Hasthe Impact of Globalization on the State been generally Positive orNegative in your View?

Itis imperative to understand the term globalization before analyzingits phenomenon. Globalization first began in primeval system whenhuman beings began settling in different parts of the world. It hashowever shown a rather gradual and fast growth in modern times.Globalization has become dynamic mostly because of technologicaladvancements which has increased the speed and scale in which all thefive continents in the world become engage.

Globalizationis mostly defined as a process which aims to enlarge businessoperations on an international level (Ritzer 4). It was hastened bythe simplification of the worldwide communications due to progressionin political, socioeconomic, environmental and technologicaladvancements. Globalization mostly originated from the rise of newworldwide economy where the creation of products and services iscirculated on a universal scale through lessening of trade barrierspopularly known as free trade. The current paper supports the claimthat globalization has been generally positive on the state.

PositiveImpacts of Globalization

Inthe United States, globalization was created by politicians withvarious corporate and financial interests. Introduced during the late1980’s, the growth of globalization was dubbed as somethingextremely good and great for the people of America (Ritzer 28). Thus,globalization was ushered into the US by the political class despiteany resistance. Over the years, the phenomenon of globalization hasbeen beneficial to the US.

Thefirst impact is employment creation. In this case, the response willfocus on three major issues on how globalization has createdemployment for Americans. To begin with, globalization entails theflow of activities in both directions (James &amp Manfred 424).Although Americans have lost job to foreign workers, they have alsogained many jobs which has boosted economic activity. For instance,data from the U.S. department of labor suggests that the country‘insources’ more job than it ‘outsources’. It simply suggeststhat as far as the United States uses the services of foreigners,these foreign multinationals make even bigger use of the U.S.residents’ services. In 2003, data suggests that the U.S. boughtabout USD 77 billion of ‘Office work’ from foreigners while itsold in excess of USD 130 billion of the same services to foreigners(Bertho et al. 44). ‘Office work’ refers to the class ofprofessional, technical and business services that includes banking,engineering, data entry, telecommunications, computer programming,legal services and management consulting among other private sectorservices.

Itis further interesting that the U.S based multinationals created over2 million more jobs inside the country than they did overseas (James&amp Manfred 424). That is an increase of nearly 30 per cent, asubstantially faster rate of employment creation than what domesticfirms generated. Basically means that one cannot assume that acreation of a job overseas essentially means that others are notcreated domestically.

Thereare further statistics that support these arguments. U.S. departmentof commerce suggest that even as the country loses jobs when itscompanies sends operations offshore, it also gains more jobs asforeign multinationals invest in the U.S. Specifically, in 2001foreign firms employed close to 7 million American workers in theU.S. an increase from 5 million in 1991 (Larsson 9). These includehighly paid professionals in Mercedes-Benz and Honda auto industry.Samsung invested nearly USD 500 million in Austin, Texas to enlargeits semiconductor plant, while in 2006, Toyota employed about 2000workforce in its auto plant in San Antonio.

Secondlyis increased market for the US products. Open trade or a free marketcreates opportunities for many economies. For instance, foreignmultinationals access U.S. market through open market thus, becomingstronger benefiting their countries economy. As incomes in thesecountries grow, so does their need for goods and services, many ofwhich they are not able to produce domestically. There is a clearopportunity for U.S companies to compete to service such overseasdemands for imports.

Furthermore,globalization results in enhanced security and legal collaboration(Saggi 191). It is hard to imagine one country attacking the otherwhen they are interdependently sustained economically. As much as itmay seem twisted and odd in many ways, and with so much global terrorgoing on, globalization has aided heighten security worldwide. Forinstance, global communication has helped bring criminals to justiceand break-up global terrorism. Thus, global terror groups like Alqaeda and its leader Osama bin laden were subdued by the U.S due tointernational communication. Murderers and criminals may have gottenaway with much more ease in the ease in the past.

Increasedproductivity is another positive impact. Globalization can enhancegrowth of productivity in America. The U.S economy has grown bycontribution of the offshoring of information technology and relatedproducts to other countries. For instance, estimates shows that theoffshoring of computer manufacturing like the Dell computer factoriesin China has reduced the general prices of telecommunications andcomputer equipment by 10-30 per cent (Saggi 200). These pricefalloffs aided the spread of information technology all over the U.Seconomy. It consequently raised growth and productivity in IT relatedsectors. The spread of IT further leads to creation of new businessprocesses that takes advantages of affordable IT infrastructures,creating more jobs in the process.

Asmuch as productivity can displace some workers, most economists arguethat increased productivity is a positive input to the economy. Thisis because higher productivity leads to creation of higher andquality standards of living across the economy. Studies indicate thatthe rate of American worker’s aptitude to produce moregoods/services has been vital for U.S. vibrant economy (Bertho et al.24). Have you ever considered the agricultural and manufacturingsectors where fewer workers have produced more output? The same canalso thought of where advanced technology has taken over theoperations of many jobs such as bank tellers, gas station attendantsand elevator attendants among others. Additionally, many routinetasks such as stock brokers, travel agents and accountants have beentaken over by the internet advancement. A lot of office work can nowbe done with more ease due to high-speed data connectivity.

Thedisplaced workers can be absorbed into jobs that emerge in otherareas of the economy. This illustrates why a quarter of currentworkforce is in professions that did not exist in 1960s. Increasedproductivity, creation of new jobs and workforce’s ability toembrace them are the proponents of a flexible and vibrant economy(Kentor 435). We operate in a dynamic and competitive market, bothfrom domestic and foreign forces. It is therefore imperative to adaptto such changes with ease and flexibility, and such is an importantpillar of America’s economy.

Additionally,more value for domestic consumers is also generated (Kentor 440). Anymoment that you have several producers competing to control aneconomy is a good thing for consumers. Mostly, producers specializein offering innovative products with efficient service delivery toremain competitive, which consequently increases the quality of goodsand services available. Businesses that venture into internationalmarkets often introduce new standards and way of doing business. Withconstant competition, they focus to improve their service provisionand create more values for clients. This sometimes means consumerscan enjoy variety and lower priced goods. This can also beillustrated where several U.S. firms have moved overseas to cut coston taxes. The cost cutting plan heavily impacts consumers. Lower taxfor a company consequently leads to more profits. Such profits can beused to maintain stable consumer prices.

Anotherimpact is access to international investments (Saggi 230). Today aU.S citizen can access international investment opportunities via theinternet. One can easily access discount brokerage opportunities,purchase international stocks, bonds and currently in a few minutes.With such opportunities, one can grow both their financial risks andopportunities as well. For instance, with access global investingmarkets, one has a chance to purchase real estate internationallywith REIT-real estate investment trust. They are also open to otherdiversified investment opportunities. The last effect to be discussedis quick and efficient spread of knowledge. In modern world,knowledge is disseminated more quickly across borders. For instance,if there is a cure of HIV in Africa or Asia, it will be quicklydispersed more efficient and fast than in the past. Access to suchinformation is critical in helping the U.S in fighting HIV/AIDSepidemic.

Byand large, there are positive and negative effects of globalization,just like any other evolution. People can learn a lot from exchangeof information, ideas and scientific discoveries with other cultures.However, to get the right balance of the phenomenon of globalizationand associated cost, human being needs to understand how it works andits integration with their societies.


Bertho,Michelle, Beverly Crawford, &amp Fogarty, Edward A. (eds.). TheImpact of Globalization on the United States.Sacramento: ABC-CLIO, 2008. Print.

James,Paul, &amp Steger, Manfred B. “A Genealogy of globalization: Thecareer of a concept.” Globalizations,11 (4): 424, 2014. Web. Nov. 15, 2015.

Kentor,Jeffrey. “The Long Term Effects of Globalization on IncomeInequality, Population Growth, and Economic Development.” Journalof Social Sciences,48(4): 435-455, 2001. Web. Nov. 15, 2015.

Larsson,Thomas. TheRace to the Top: The Real Story of Globalization.Washington, D.C.: Cato Institute, 2001. Print.

Ritzer,George. “Globalization:The Essentials”.New York: John Wiley &amp Sons, 2011. Print.

Saggi,Kamal. “Trade, Foreign Direct Investment, and InternationalTechnology Transfer: A Survey&quot. WorldBank Research Observer,17 (2): 191–235, 2002. Web. Nov. 15, 2015.