Liberty Exposé: The Promises and Pitfalls of Globalization

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As the world grapples with the effects of  the COVID-19 pandemic, the realization that we are more interconnected than ever has really hit home. While observing and taking note of how different countries are handling the global emergency, an interesting conversation has emerged about globalism, with people wondering whether it really is as beneficial as its proponents claim it to be. It was news to most Americans—myself included—that our country is reliant on China to produce critical medicine and medical supplies for the country. With the virus emerging out of Wuhan, the supply of medicine to the United States was threatened. It begs the question, is it wise to put such reliance in the hands of a foreign country, and is it serving the citizenry of the countries involved, or just the elites?  Trade between countries is nothing new—it has been around for millennia! In this article, let’s delve into the positive gains that have been brought about by globalization, as well as analyze some of its pitfalls.

What is globalization? Merriam-Webster Dictionary defines it as “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.” As we discuss the pluses and minuses below, we take an in depth look at this new way of global commerce. 

Plus: Globalization gives the international community access to products faster, easier, and at a better price. 

Minus: The pursuit of lower labor costs have put many blue and white collar workers in developed countries out of work. In recent years, jobs from America have shipped overseas by the millions, hollowing out its industrial and farming sector. Not to mention that many countries manipulate their currency that ensures businesses abroad can’t compete.  

Plus: A beautiful side affect of globalization is its ability to energize and lift developing nations out of extreme poverty. The infusion of cash from developed countries offers employment opportunities to places that would otherwise be economically desolate. 

Minus: On the other hand, exporting jobs overseas has not lived up to the promise of fair working conditions. Exploitation of workers is prevalent among developing nations, and that behavior is being propped up by companies seeking cheap labor—whether they agree with such principles or not. With such adverse side effects, it’s worth questioning whether we should let the almighty dollar be the only determining factor to decide on the location of one’s company. If I knew the that if one of my favorite companies was making their items in a factory that had unfair working conditions,  it would certainly make me not want to buy from them again in the future. Also, to keep up with competition, some countries become lax and cut corners in regards to environmental regulations, which lead to more waste and pollution worldwide.

Plus: With globalization, the free flow of information and technology is lightening fast.

Minus: The rampant theft of intellectual property (mostly from China) ranges in losses from $180 to $540 billion dollars per year. Ironic considering the trouble gone to cut costs elsewhere. It is not friendly for nations to engage in illegal activity, and if one country is too dependent financially on another, it makes confronting such behavior difficult. For too long, American leadership has ignored this serious problem, and worth noting that the current administration is actively working on resolving the issue. 

Plus: Globalization can increase cultural understanding on a scale the likes of which we’ve never seen. Such exposure and interaction can foster better communication between individuals and nations alike. An international workforce can lead to learning opportunities that wouldn’t otherwise be afforded. 

Minus: There is a general worry that countries may end up not being able to retain their unique cultural identity and values due to pressure placed on them by outside governments.  This can lead to adopt behavior that is contrary to the cultural sentiments of the populace. This introduces us to a new power player on the international stage—the corporation. Extreme financial reliance on foreign entities has the potential to undermine the sovereignty and autonomy of a country. A good example of this would be the three branches of American government. The President’s power doesn’t outweigh the judicial and legislative branches, ensuring the public can address the problems and have a voice.  

So what is to be done? Without leadership to stand up to those in the global community that are playing the system—there won’t be any significant changes soon. In all things, sunlight is the best disinfectant, so a critical aspect would be transparency in trade deals, as well as from the companies and countries involved. When engaging with other nations economically, ethics of how business is done should be at the forefront.