However, there are debates around, the pros and cons of globalization because of its complications. There is no doubt that those, who support globalization claim it is of importance because it strengthens the connected world and helps in improving the welfare of the population by solving complex issues like poverty and unemployment. Globalization brings about the constant search for competitive advantage. And in the current market landscape, this is through the creation of disruptive, innovative products or services. Thus, competition intensifies between countries and reducing the cost of product and services. However, this does not apply in many instances, because some countries manipulate its currency for deriving competitive advantage by reduced price. And example, China as an established country, recently devalued its currency to gain an advantage on globalization (Heather, 2015). The question one may ask here is the issue of ethics and its consideration because; China devaluation may be of advantage to the Country’s economy. Although, the human capital, which leaves on the minimum wage are those affected. Mostly, because the standard of leaving would be further devaluated and the ability to buy ‘want’ and ‘needs’ is significantly reduced. Lorraine and Eva (2015) painted an excellent picture and stated China’s move to devalue its currency will hurt companies like Apple and Yum Brands Inc. Mainly, the move would expose Apple and Yum Brands Inc. to risk attributed to downward pressure.
More so, we should recognize that one of the important pros of globalization is information influx. Thinking of how possibly did China and the United States (US) can relate with each having its distinct culture. However, both countries were able to recognize ways of benefiting from each other. The US recognizes a great advantage in exploring the human capital in China. Supporting Marber (2007) point, about the purchasing power of most countries by outsourcing production bring about competitive advantage. And as Marber (2007) stated, the wealth of a country and its purchasing power. Furthermore, China benefits greatly by the import of intellectual property into its territory for economic improvement (WIPO, nd). An example, Apple’s contractor Foxconn, uses its knowledge derived from Apple product in producing its brand (Lorraine, 2014). Thus, one inflow of idea is exchanged between two countries and as a social impact is seen when US culture is widely observed in China. Furthermore, Marber (2007) illustrated how free trade is an important pro of globalization. Mainly, this is because it reduces barriers that may hinder countries to trade such as value added taxes, tariffs. For example, the Dubai government in the UAE created free zones to remove barriers investors faced when investing in an economy. The move by the ruler helped its economy grow economically, mostly supported by the subsidized cost of operation (PKF, nd). Mike (2015) cited the wall street journal and mentioned this is not true because G20 countries increased its restriction on import and export to over ‘1200’since 2008.
However, with the mentioned above, one can easily see the cons of globalization. Since, it is supposed to bring about free trade, by removing barriers that hinder investment between countries. Although, this is not the case when examining the value added taxes European countries have on imports. Mike (2015) stated this is higher than 21.6% in recent years and only countries like UAE and US do not have value added tax (VatLive, 2015). Also, globalization brings about inequality where international companies are looking for means to reduce the cost of production. Thus, not taking consideration of the working condition of employees. Mostly, because workers salaries are low and not on a minimum wage benchmark (Kevin, 2013). Also, companies produce a product without the consideration of the environment and thus, increases global warming. While, from a social perspective, the cons of globalization is it help spread diseases around the globe. Mainly, because of inflow and outflow of expatriates between countries increase the chances of disease transmission. And not forgetting that most multinationals are sponsoring individuals into an office for an advantage, which leads to politicians becoming a direct lobbyist for companies (Ken, 2013).
In conclusion, as globalization cannot be stopped and can be argued it provide an opportunity for improving the economy. An international organization can benefit, by reducing the adverse impacts of globalization on society, the economy and our environment. First, there is no doubt that, these starts with leadership; i.e. politicians with a great will to stand up for unethical practice. And this extends to countries leadership, to support the idea and practice of fair trade instead of manipulating its currencies. For example, as China is increasing its export, they should increase the import flow (WTO OMC, 2014). Furthermore, the trade should be balanced, to ensure deficit is reduced and as Mike (2015) said.
The deficit in trade is the highest factor that causes unemployment. Also, countries benefiting from globalization should be forced to follow the rules. For example, China forms its rule of engagement with multinationals. And they change regulations at any time because there are no consequences. The mentioned, also promote the theft of intellectual property. Mostly, as seen in cases where, China’s does not crack down on illegal activities (Susan, 2010). Lastly, as stated above free trade is pros of globalization, this would be effective when companies operating internationally can operate freely or with less restriction. Thus, the barriers such as increase value added tax or duties are reduced. For example, the transpacific Partnership (TPP) free trade agreement is aimed at improving trades among multiple countries in North America, South America and Asia (AFOCIO, nd).
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