The Effects of Globalization
The Effects of Globalization
Globalization has had a key impact in the development of the entire planet. Globalization keeps our world economies integrated through the trading of goods, which forces different world cultures to interact and integrate. These interactions can have a various effects on various markets in different countries as one thing done in one country will affect many others. Three major influences on world economies include the effects of sweatshops, brain drain, and the global drug trade.
Sweatshops are defined as any workplace that violates more than one federal or state law in regard to pay and/or working conditions. Sweatshops can have many effects on global markets, the first being the effect on the price of goods. Companies who have sweatshops usually have them for the cost benefit of being able to produce cheaper goods, meaning you can put a product on the shelf that is lower than your competition. The sweatshops also have a negative effect on countries outside the sweatshop. Sweatshops are formed due to cheaper labor outside the country of the organization; organizations contemplate the cost benefits of outsourcing their jobs and they usually turn out to be cost beneficial. So instead of employing American workers here in the United States, they send jobs to places where the labor is cheap. What is working against the formation of sweatshops, especially in the United States, are government taxes for outsourcing, the formation of ethics groups, and more public awareness. More public awareness can hurt a business because some people may be reluctant to buy product from that due to moral ethics. People now are starting to be aware of human rights and tend to stray from things that might be unethical. Cheap labor in countries can also cause people to seek opportunity elsewhere; too low labor can cause a country wide brain drain.
Brain Drain is when better opportunities in richer, more developed countries cause the talent in developing countries to leave. This can be partly attributed to extremely low wages caused by sweatshops. Some of the countries that have had a problem with brain drain are China, India, and the entire African Continent. Countries can really suffer from all their talent leaving, with losses in Africa due to brain drain estimated to be over 4 billion dollars. Losing even more talented you workers, India has lost over 10 billion. Although brain drain has a seemingly negative effect, in the extreme long term it is predicted to have some positive effects. When someone leaves their country for a better opportunity somewhere else, they do aspire to return to their homeland some day. This has been seen the past several years in a few African nations, one being South Africa. With the economies all over the world struggling, the brain drain generation from South Africa is seeing it beneficial to return home and many of them have. A report from CNN shows that one of the biggest hurdles for South Africans return home is the past shaky political history, but most are optimistic about the economic and political future. Sweatshops and brain drain are normal parts of an economy and are perfectly legal, but there are also many factors that are illegal that shape our global economy.
The global drug trade affects our world so much more than people probably think, generating more than 400 billion in revenue each year. The illegal global drug trade has so many negative effects, which is why some argue that we should just legalize all drugs. The drug trade results in violence due to the mass quantities of money changing hands. Drugs also are partly the cause of gangs in inner cities, which causes more violence. Governments also spend billions a year in trying to stop drug trade. According to 2009 "International Narcotics Control Report" the illegal drug trade does diminish local societies and undermines law enforcement, which cause more violence against them. Along with this it also hurt the prescription drug business. If at least some less harmful drugs were made legal people wouldn't have to risk their personal safety when dealing with drug dealers, and the government and small business owners would benefit from the sale and taxing of it, instead of drug dealers.
Globalization is all around us and will always affect us in almost everything we do. Globalization shows us that everything across the world is intertwined in some way, especially global markets and trade. People are integrated with each other and force technology to moves faster with this type of global competition and will only continue to force humanity to adapt and evolve.
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