The development of competitiveness may be treated as a positive impact as well since the wider market is the more severe is competitiveness. In socio-demographical terms globalization contributes to free movement of labor force that is obviously positive for the countries which suffer from unemployment and in such a way they can export their labor force. Finally, some specialists believe that elimination of financial barriers is also positive since it contributes to development of free trade. However, practically all positive impacts mentioned above have their other side, that is rather negative. So, if some countries (basically developed) become richer due to globalization than it is natural that they do it because other become poorer (basically developing).
Though the Unites States or any given Country might be able to produce most products that she needs, one can argue that not engaging in international trade and allowing specialization will be inefficient even if the country can make everything better and cheaper. Livingstone (2011) posits that it is better for Countries with comparative advantage in every product to concentrate on producing those goods where its comparative advantage is greatest, while importing those goods where its comparative advantage is lowest. Blinder (2008) supports Livingstone’s position with the illustration that attorneys who can type better than their secretary would be doing their legal practice a disservice if they decide to do their own typing. The legal practice is better off when such attorneys concentrate on
Globalization, through the reduction of trade barriers, has increased integration of various national economies. Its impact on advanced nations, such as the USA and Japan, is highly positive and profitable. However, the same cannot be said with regard to developing nations, such as Thailand and Indonesia. Globalization is akin to swimming in the sea, depending on the status of the nation. Advanced nations can enjoy the cooling feel of the water, but the less advanced of the risk of sinking or even drowning.
Though the lower cost makes the exporting countries’ products competitive in the global market, the profit has been earned at the cost of individual’s wellbeing, social stability and development of the relative industries. The unfair situation that the workers in the exporting countries are confronted with has become one of the most severe ethical issues. It is unethical for employers to take advantage of workers’ weak awareness of their own rights and poorly forced law. The ethical issue was mainly arisen in three aspects: low payment, bad working conditions and overtime working. Child labor caused many other ethical issues in the society.
According to the Tom G. PALMER points out about the globalization that “the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result”. He emphasizes that the restriction between the borders is reduced with the globalization. The most important effect of globalization is on economy. Via the globalization, economy is universal and people can trade internationally without any tariff and export fees. A lot of economist have thought that globalism has a good impact on countries growth economically and has advantages to countries and beneficial for the traders, some of them deny or refuse the other side of the coin that it has some drawbacks, such as income distribution inequality, making poor countries poorer and making rich countries richer and the last point is that the economy crisis of one country effects economy of the whole countries.
Hence, people from the oil-rich countries not only have not become prosperous but also suffered through relatively lower living standards. There is another controversy discussing whether the developing oil producing countries are really doomed with the "oil curse" or there are ways to combat the negative outlook and improve the situation. Oil curse do not have to prevail forever and there are actually exceptions of economies being blessed by the oil-led development with adequate policies. Oil, blessing or curse? Advocates of oil-led development argue that oil rich countries are lucky to have access to the black gold (Karl, T. 2007).
For example, they had reasonable level of roads and infrastructure, well-educated populations with existing skills, cultural traditional education and achievement, good geographical locations, government support and less ridged laws on planning and pollution. However the growth of the Asian Tigers can be seen badly. They focused on exports, arguably preying on the healthy economic state of developed nations. This isn’t sustainable within the global economy. By the 1990s their economies had expanded too fast and prices of property, stocks and shares had become overvalued.
BENEFITS OF COMPETITION Free and open competition benefits individual consumers and the global community by ensuring lower prices, new and better products and services, and greater consumer choice than occurs under monopoly conditions. In an open market, producers compete to win customers by lowering prices, developing new services that best meet the needs of customers. A competitive market promotes innovation by rewarding producers that invent, develop, and introduce new and innovative products and production processes. By doing so, the wealth of the society as a whole is increased. In a competitive environment, businesses that fail to understand and react to consumer needs face the loss of customers and declining profits.
An excellent example of China, whereby the nation has broken traditional perspective of individualising and ignoring other countries, to now a globally active nation, hence, the fastest growing nation in the world. Statistically, open economies have grown at rates that are on average 2.5% points higher than the rates of growth in economies closed to the forces of globalisation. However, there are social and economic costs to globalisation. Trade liberalization rewards uncompetitive ones, it requires participating countries to undertake economic restructuring and reform. While this will bring benefits in the long term, there are dislocation costs to grapple with in the immediate term, and the social costs for those affected are high.
The law implemented nowadays is more to punish than to prevent others to commit the same thing. Capitalism economy promote by the globalization also make the richest to become richer, and the poor to stay poor and even worse, to become poorer. Capitalism only benefited the west as the dominant and the monopoly in world economy. Due to that, poor countries like in the middle Asia and at the east stay inprogressive and indebt to the World Bank There need to be better alternative to the globalization system! The alternative system can solute the woes faced by the world.