Protectionism endanger a consumer’s right to choose from a wide variety of goods and services. The defense argument is that it protects higher prices, lower quality goods, economic stagnation and among other things. It is a form of purism when it comes to the trade barriers being in place. It is defended that is in place because consumers to purchasing foreign made products will cause unemployment here in America. The theory is that jobs are lost when we are tempted by cheap foreign goods.
An example Wheelan uses that relates to the consumer is cheap foreign labor. If Nike were to hire workers in Vietnam as opposed to Maine to make shoes, consumers would be rewarded with lower prices on shoes because Vietnam workers will work for less than American workers. This change in price changes incentives of people to buy, and may make the difference between buying Skechers or Nike. “...individuals who claim to have the downtrodden at heart neglect the fact that cheap imports are good for low-income consumers (and for the rest of us) (Wheelan 195). Wheelan continues to say although it seems inhumane to have employees in sweatshops working for meager wages, it gives people jobs who otherwise may have no job at all.
Our country is currently experiencing a massive debt, and I do not think it is appropriate solely looking at the issue in a factual manner that we allow illegal immigrants into our society or work place. Another major response to this issue is that these illegal immigrants are doing extremely beneficial work in the United States that many others will not do, and if we prohibit them from doing so than much of that work may not get done. However, just because these illegal immigrants are willing to do this hard work for next to nothing in potentially dangerous working conditions does not make it okay for us to allow them to do it. Not only do possibly dangerous and unsafe working conditions impose harm
Aid can become an obstacle to development because of the tied nature of much aid, which benefits the donor country more than the recipient, in economic terms. Tied aid is bilateral aid in which the donor country specifies conditions relating to the way the money is spent. This often involved spending money on goods and services from the donor country. Aid is also an obstacle to development because of the frequently inappropriate use of aid on large capital intensive projects which may actually worsen the conditions of the poorest people. The strengthening of political ties as a result of bilateral aid may increase dependency and hinder democracy in the recipient country.
The benefits of globalization are unevenly distributed, and it causes hardship for poorer countries. The gap is widening between developed and developing countries. About two-thirds of the developing countries remain on the margins of the globalization process and are considered "nonglobalizers." Globalization can result in unemployment as businesses relocate operations to lower-cost areas. Many of these outsourced jobs don't pay decent enough wages to lift workers out of poverty.
Opponents also typically insist that undocumented immigrants lower wages and labor standards by offering their cheap labor and by being willing to work under very harsh conditions (“Lower wages,” 2008). This, increases unemployment and affects the living conditions of the working class and poor Americans (“Amnesty,” 2009). Thus, according to opponents, a comprehensive immigration reform would reward “criminals” who, not only broke the law, but also exploit the US economy, degenerate society, and compete against natives for work opportunities that are running scarcer as more people continue to come to the US. Legalizing the millions of undocumented immigrants that currently reside in the US would send future immigrants the wrong message that it is acceptable to enter the US illegally and that they will, in the future, be similarly forgiven (“What is wrong,” 2005). Finally opponents complain that legalizing undocumented immigrants would be very unjust for both, those that went through the long, legal process of receiving a visa, and for those that are still waiting to receive one.
Moreover, the goods from the outsourcings may not be as efficient as the goods that are made within the country. The consumers would choose the goods through the brand names or the prices; however, sometimes the consumers would choose goods by where they are made. Therefore, it is very significant to know where the goods are manufactured because it will increase the satisfaction of consumers since they are very demanding on the quality of goods. In addition, as the consumption of the goods decrease, the companies will earn less revenue that decreases the investment that they will spend for outsourcings. Thus, consumer demand has a big impact on outsourcings since people do not want to spend money on the outsourcings’ goods which make the companies earn less profits; on the other hand, the outcome will reduce the spending on
Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor. While poverty rates have fallen as a result of our world becoming globalized, the workers are still getting an incredibly low income, which might cause social instability and conflict. Globalization has had a positive impact. One of the main advantages is that based on per capita GDP
Countries that have been considered poor and have struggled globally now have the opportunity to sell their low cost labor to the world market. This brings jobs to this struggling countries, even though they are lower paying jobs than the same position
o Another argument is that firms in developing countries keep costs down by paying their workers depressed wages and by subjecting them to inhumane work environments. Hence limiting the imports of such goods discourages such exploitation. Employment protection o Engagement in international trade often results in structural unemployment as workers in the contracting sectors may lack the skills to transit to the expanding sectors o Temporary protectionist measures allow such