Pros and cons of globalization
There are both pros and cons to globalization. On one hand, it increases creativity and innovation. On the other hand, it can lead to imbalances in trade ratios. Increasing interconnectivity has caused an imbalance in trade, which is also known as trade deficits. In developed nations, the trade imbalance has increased due to competition in the market. On the other hand, globalization has increased the rate at which industrialization occurs. As a result, countries are emitting more pollution into the atmosphere, accelerating climate change.
Although globalization has many benefits, it is often associated with a high price tag. Many countries manipulate their currencies to boost their exports. For example, the dollar is overvalued and was recently announced by Donald Trump to weaken the currency. On the other hand, globalization has boosted productivity and development. In developing countries, open borders have made it easier to invest in infrastructure. And it has promoted cultural and financial exchanges.
Some critics of globalization point to the exploitation of workers by cheap imports, the use of sweatshops overseas, and the presence of children in foreign factors. Others paint a picture of a globalized capital elite that has little regard for human rights and labor standards. While the benefits of globalization may be far outweigh the costs, critics of globalization wish to roll back its policies. The debate will remain long, but if we don’t acknowledge its downsides, we may never fully understand the benefits and drawbacks.
Impacts on people
As the world becomes increasingly interconnected, the effects of globalization are felt more profoundly. The first is the changing nature of identity. Globalization affects not only the way we perceive ourselves, but also how we relate to others. Jeffrey Arnett identified four major identity issues caused by globalization. These issues include cultural identity, individuality, and family identity. We should take note of these issues and think about their implications for our lives.
The rapid changes in our lifestyles are altering the concepts of national identity, family, tradition, and job. As a result, we are moving toward more individualistic societies. The rapid changes we are experiencing may encourage extremism, a longing for the past, and a lack of tolerance for difference. With global economic pressures affecting nation states, some are failing to establish proper social policies to support their people. As a result, human rights will be threatened.
The global economic system is extremely unequal, with many people and countries suffering from severe poverty. Moreover, income disparities have been growing steadily over time. Hence, global taxation must entail a strong progressive re-distribution of income and wealth. While the national tax systems of developed countries re-distribute income to poorer regions, the international system has no such system. Instead, we spend a mere 0.1% of the global GDP on official development assistance.
Importance of macro-level quantitative analysis to understand globalization
Macro-level quantitative analysis has gained great interest among sociologists and economists. This type of analysis looks at interrelationships between nations and their economies. Globalization has been an ongoing phenomenon and is likely to continue in the future. It has the potential to enhance both individual and country welfare. But the importance of this type of analysis cannot be overstated. While there is no universal definition of globalization, some indicators, such as GDP growth, can be helpful in understanding the current state of globalization.
The pace of change in the world is so fast that even experts who study globalization can’t keep up with all of the new developments. Trends emerge and are categorized, and new words become buzzwords in the media. One of the most common examples of this phenomenon is the term globalization, which is both a vague and important concept. It expresses the prevailing sentiment at the end of the 20th century.
The study compares the 1980s and 2000s with past periods. It compares the eras and indicates changes in income inequality, inflation, the prices of basic goods, taxation, public health expenditure and health financing, and migration and family arrangements. Another comparison is made between the different types of health care, including smoking and obesity. These are just a few of the factors that are important to understand globalization.