Globalization Impact on US Economy
According to Driscoll & Grant (2009), globalization stands as a threat to the U.S economy and the well-being and personal health of the American people. This has been recorded through the trade deficits that have occasioned from globalization and the influx of cheap and under quality products in the American markets respectively. Globalization has also lead to high rates of unemployment among the American people. Most of those were reported in the manufacturing industries specifically in the textile and automobile sectors. The job loss has occurred due to the presence of finished foreign made commodities and outsourcing of cheap labor. In addition, it has lead to job insecurity. The rest of the world has recorded an extensive violation of human rights and environmental degradation which has lead to global warming simply because of globalization. All this have resulted to adverse effects on the mental well-being and lives of the people. Free trade has also widened the income differences between the rich and the poor as indicated by the huge disparity between the salaries earned by the chief executive officers and the workers. It's clear that the CEO earns 364 times what the least paid worker earns.
On the other hand according to Rich & Montanez-Muhinda (2009), globalization is the only panacea to the many problems affected the world. Globalization to them intended to increase competition among nations, improve relations among nations and ensures a fair price of goods. Free trade resulted to increased employment and economic performance of American. Through the comparative advantage that results from globalization countries can specialize in the production of those commodities that they can cheaply produce and import those commodities that can be produced cheaply in other nations. These have lead to economic growth of developing nations. With globalization many of the developing nations have come in contact with better technologies and knowledge used to control and prevents diseases which has eventually lowered the mortality rate, improved life expectancy rate, reduced child labor, low levels of illiteracy and increased food availability (Healey, 2001).
Most of the American giant companies have extended their operations to other parts of the world just because of free trade. They have been in a position to take advantage of the cheap labor force in the developing nations to increase their earnings. They also maintained that issues affecting countries differ as development jets in. In developing nations people struggles to fulfill their basic needs before they consider the environmental impacts. It is only through globalization that these countries can meet their basic needs.