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Globalization Globalization is a worldwide phenomenon which means that different nations and individuals are rapidly integrated into world economy, culture and politics. In term of economic globalization, it refers to economies of different countries are connected to the global economy; consequently, commodities can be traded in multiple countries. Furthermore, it plays a major role in foreign trade, information advances and investment. According to (Held, 2004), world economic growth is depended on five interconnected activities namely communication media, foreign direct investment, international trade, technological transfers, and worker mobility. Although global economic growth is caused by various factors, a key driver of global economic growth is international trade. In addition to some positive globalists ,who argues that one major of the global economic growth is international trade (Soars, 2008).Some positive globalists are of the opinion that international trade brings potential benefit to recipient countries. Nevertheless, other opponents believe that the international trades have negative effects on local economy. All in all, international trade has resulted in both positive and negative consequences; however, this essay will point out that the negative impacts of international trade far outweigh the benefits in terms of income, job opportunities and economic growth. To begin with, international trade can generate higher income among individuals. For example, in China there is a significant rise in per capita personal income from almost $1400 to over 4000 between 1980 and 2000. Furthermore, the per capita income of India dramatically increased by more than 100% from 1980 to 1996 (Soars, 2008).However, there are some pessimistic globalists who believe that minority of workers receive higher incomes; in fact, many workers receive fixed incomes. According to (Soars, 1

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2008), the increasing per capita income does not reflect all people having a higher income; whereas, many people have the same income. Meanwhile, wages have stagnated especially low-skilled people (Das, 2009). Moreover, high-income people do not receive higher real incomes because they are forced to work longer hours than in the past. According to (Buckley, 2008), the average working time increased from 1779 to 1978 per year in the US between 1973 and 1978.Therefore, international trade cannot result in higher income for people because many workers receive the same income .Moreover, high-income people are expected to work longer hours than they used to. Secondly, international trade can create oversea job opportunities for people. For example, citizen in European Union has right of movement, jobs and education throughout the Union (Stiglitz, 2002).Meanwhile, in the United States ,there is a significant increase in migration and many immigrants tend to work in the United States(Stiglitz, 2002). However, international trade leads to many people who move to countries which pay high wages. As a result; many poor-skilled people have faced risks of unemployment. For example, in the EU economies have a higher risk of unemployment especially lowerskilled people because accelerated

international trade brings many offshore outsourcing to their countries (Das, 2009).Meanwhile, less-skilled worker feel insecure because high wages bring more immigrants into their counties (Stiglitz, 2002).Moreover, increasing job 2

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opportunities are created for high-skilled people; consequently, many poorskilled people are possibly unemployed. If less-skilled workers cannot shift their ability to high-skilled level, they will be invaluable in job markets (Das, 2009).Although there is an increase in job creation, it does not move from low-skilled to high-skilled jobs. On the other hand, many low-skilled people are going to unemployed(Stiglitzs, 2002).For these reasons, many lessskilled people have faced job loss because international trade can cause increasing migration and bring more high-skilled workers into high-wage countries. The final argument advanced by supporters of economic is that international trade is increasing imports and exports. As a result, most countries develop their economies. An example of this is a coffee, which is imported and exported at the same time because the suppliers of coffee import coffee beans and produce coffee packages. Consequently, two countries develop commercial business (Soars, 2008). Moreover, Korea and Taiwan have rapidly grown in their economies because of exportation (Stiglitzs, 2002). On the contrary, many countries particularly poor countries cannot fulfill to develop their economies because they are lack of fairness business. For example, the price of coffee beans is fixed by richer countries; consequently, coffee beans are sold at low prices. On the other,

manufactured goods are bought by farmers at an inflated price (Soar, 2008).Furthermore, manufacturing products which are imported in sub3

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Saharan Africa; on the contrary, sub-Saharan Africas products especially agricultural goods cannot come to Europe and the United State markets (Stiglitzs, 2002). Moreover, developing countries are forced by excessive imports especially manufacturing goods from developed countries;

consequently, economic growth is difficult for those countries. According to (Soars, 2008) large debts are acquired by countries because imported goods are over-priced. Accordingly, excessive imports and trade exports do not

contributed to economic growth

and unfair

have

occurred in

developing countries especially agricultural goods. All things considered, many developing countries are likely to receive the benefits of international trade. However, in the real world, international trade puts more weight on negatives entities than positive because it cannot lift the wages and incomes of all citizens. Meanwhile, many less-skilled people have suffered from unemployment because of increasing immigration and job dislocation. Furthermore, increasing imports and exports cannot allocate economic growth because of unfair trade and over-priced imported product which are the main barriers for developing economy. However, international trade is inevitable; as a result, many countries will confront with the negative effects of international trade and solve these problems. (904 words)

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References: Buckley, R. (ed.), 2008. Change and Continuity in a Shrinking World Understanding Global Issues. London: Understanding Global Issues Ltd. Das, Dilip K., 2009. The Two Faces of Globalization: Munificent and Malevolent. Northampton, MA: Edward Elgar Publishing, Inc. and Glos, UK: Cheltenham Held, D., 2004. A Globalizing World? Culture, Economics, Politics. London: Routledge. Soars, J., 2008. Collected essays on Globalisation. Oxford: Oxford University Press. Stiglitz, J. E., 2002. Globalism's Discontents. The American Prospect, Winter, pp.16-21.