Part I: In Defense Of Globalization

 

The world has changed drastically since the end of World War II. It has become much smaller and more connected. Advancements in science and technology have made it possible for communication, trade, and commerce to occur almost instantaneously. Trade barriers have been broken, international borders have been blurred, and the transfer of goods, people, and ideas happens daily across borders. This brave new world that was entered after the war is caused by a process called globalization. Globalization, according to Wikipedia, “is the action or procedure of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.” Globalization has changed the world for the better, and it should become the standard for humanity. Its benefits include, but are not limited to, per capita and revenue growth, the spread of democracy through the developing world, and a general interconnectedness between the human species brought about by the social, technological, and ideological exchanges across the world.

Since the 1990s, trade agreements like NAFTA have made it easier for companies to move across borders and maximize revenues. Companies that were once limited to operations in very few countries were able to create jobs where labor was cheapest, resulting in more employment, and a rise in standard of living in poor countries, like China. China’s economy is a prime example of the economic benefits that globalization has produced. China has become a hub for manufacturing, with companies like Apple producing most of their products there. Since 1990, GDP per capita increased exponentially, going from USD 317.885 in 1990 to USD 8,027.684 in 2015. Higher individual wages also correlated with a higher total GDP. GDP in China went from 360.859 billion USD in 1990 to USD 11.008 trillion in 2015. This huge increase in economic value is thanks to the countless companies that have taken advantage of China’s booming population and workforce. This in turn raised incomes for the majority of the Chinese populace. Standards of living have been going up, and outbound tourism from China has been steadily increasing, from 4 million people in 1999 to 50 million people in 2015. China is just one example of the profound effects globalization on a population. As the winds of globalization inevitably sweep across the world, many developing countries will turn in to booming, prosperous nations. According to the Peterson Institute of International Economics, “A sophisticated model predicts that global free trade, removing all post-Uruguay Round barriers, would lift world income by $1.9 trillion ($375 billion for Japan, $512 billion for EU and EFTA, $537 billion for the US, $371 billion for developing countries, $62 billion for Canada, Australia, New Zealand).” This “global free trade”, brought about by trade deals like NAFTA and TPP, will enable labor to spread around the world and increase incomes across the board for citizens of the globe. However, globalization has come under fire from many people, including US President Donald Trump. His entire campaign was directed against globalization, claiming it took away jobs from “ordinary, hardworking Americans”. It is true, that free trade drives companies to shuffle jobs around different countries, potentially leaving some people behind. The key to solving this issue is adaptability. Globalization hastens the pace of innovation across industries, thanks in no small part to the input of ideas from around the globe. New innovations can create new avenues for moneymaking, thus creating newer jobs in the places that lost them. To maximize global revenue, trade deals between nations should make it easier for companies to move across borders, all while keeping a balance of power between people, corporations, and governments. In fact, trade deals like these should include councils of representatives from corporations, governments, and unions, enabling openness and transparency in all facets of the economy. If such a system is implemented on a global scale, the prosperity of the human race will soar.