Running head: GLOBALIZATION IN AMERICA

Business
Globalization in America, Is it Worth It?
By Zachary Garvin

GLOBALIZATION IN AMERICA

Business
Globalization in America, Is it Worth It?
Globalization refers to the internationalization of a countries main operation in major
sectors like health, defense, finance, and education. It necessitates a country to work in
conjunction with other states in a bid to optimize the performance of its sectors. For monetary
policy-makers in the United States, the main concern of globalization centers on its effect on the
economy of the country. The economy has had sluggish periods in the past one and a half
decades with recessions in 2001 and 2008(Friedman &Mandelbaum, 2011, p. 2). However, the
recent quarters indicate improved performance with growth in the strength of the economy
s
output and overall productivity. However, the performance of the job market remains
disappointing given that the rate of unemployment remained relatively constant. However, the
past few months indicate a slight improvement, an element that raised concern among various
parties. Individuals seeking employment opportunities, the federal government, and its
policymakers developed concern as the discussions of terms like globalization and its impact
came up. The question remains whether globalization is an opportunity or a threat to the US
economy.
Globalization is worth the consideration of the United States because of the advantages
accruing from free trade. Free trade promotes the exchange of goods and services across
international borders with few limitations and discriminatory regulations. The argument behind
the concept of free trade within globalization is that all countries participating in trade stand to
benefit. The benefits stem from specialization in the types of production that particular countries
can carry out using their available resources(Karoly, Panis, United States, Rand Corporation, &
Labor and Population Program, 2004, p. 2). There is little need to manufacture or produce all the

GLOBALIZATION IN AMERICA

goods and services required within the country some of which are very expensive due to
limitations of resources. If the United States can acquire such products from another country at a
subsidized price, then the price of cheaper imports justifies the concept of globalization. On the
bigger picture, globalization enables the practice of free trade among countries, which promotes
the exchange of goods and services. It can enable the United States to improve its marginal
propensity to save by acquiring goods at cheaper prices. The saving can attribute to other sectors
of the economy and improve economic development.
Globalization also enables offshoring and outsourcing, corporate practices through which
the United States can derive great benefits. Outsourcing can enable the country to contract out
some of the costly functions performed in house. The United States can allow other contractors
from overseas countries to come and complete some economic projects if they have adequate
qualifications and quality certifications. If they provide the services at subsidized contractual
practices, the United States can benefit from lower costs of outsourcing(Tsuji, Giovannetti,
&Kagami, 2007, p. 3). On a similar note, project outsourcing works closely with the practice of
acquiring foreign expatriates. Here, globalizations enables the United States to hire the services
of competent personnel to enrich its workforce. These individuals can contribute to important
departments of the country including health (doctors), finance, and defense.
The question of employment also features in the pro-globalization campaign.
Globalization implies that the flow of economic activity is two-dimensional. Therefore, as much
as there is a threat of nationals in the United States losing jobs to foreigners, there is also the
possibility of them gaining jobs from the other countries. In reality, the United States forms the
world
s most vibrant economy. It has, by far, some of the best technological advancement in the
world. In the context of work, the United States outsources lesser services compared to the much

GLOBALIZATION IN AMERICA

it insources. It implies that although firms in the United States use workers from other countries,
the foreigners benefit more from firms in the United States and the labor from there. The
argument is in line with the level of economic development of the US because it is only logical
that more countries are seeking expertise and skill from there. Statistics indicates that the United
States lost nearly 100000 to 170000 jobs in a span of three years from 2000 to 2003(Choate,
2008, p. 4). The statistics seem high until one puts them in the context of the overall job turnover
within a year. Every year, US nationals lose fifteen million jobs due to several causes including
firing, resignation, changes, and layoffs. Therefore, globalization has little effect on the job
market in the United States as it creates more opportunities that the one it makes nationals lose.
Another argument in support of globalization relates to the opportunities resulting from
other countries. Free trade enables other countries to strengthen their economies. Consequently,
the incomes in other countries increase, which ultimately leads to an increase in the demand for
services and goods than other countries are not in a position to produce(Berberoglu, 2002, p. 4).
The rising demand for import goods and services puts the United States in an advantaged
position. Firms in the United States can increase their output to match the rising demand. Such
corporate competition is healthy for the state as it also provides an opportunity for other firms to
grow and provide employment opportunities to the nationals(Haugen & Mach, 2010, p. 4).
Consequently, there is a rise in per capita income, which improves the standard of living in the
United States.
Many economists in the United States argue against the case of anti-globalization. The
United States will lose many opportunities. They argue that the globalization results into greater
overall prosperity in developed and developing nations. It can lead to a reduction in child labor,
increase the levels of literacy, and enhance the social and economic standing of women in the

GLOBALIZATION IN AMERICA

United States. Globalization often results in a hegemony of cultures due to increased interaction
among people in the United States and foreigners. It helps to overcome societal stereotypes as
they get to appreciate other cultural traits. On that note, it is important in combating in-house
challenges in the country such as gender stereotyping and racism. Professor Bagwati asserts that
the globalization is an important force in the construction of better social institutions.
Most importantly, the federal government of the United States grew into one of the most
powerful institutions in the world. Financial globalization works well with floating rates of
exchange to make the dollar a reserve currency. Good international relations have made the
United States the ultimate arbitrator of the international monetary interest rates and flows of
investments. The federal government is a singular powerhouse because of the global mandate it
plays in the world today. The United States believe that good trade relations with Canada and
Mexico are the secret to a powerful economy in the three countries. Due to the benefits of
globalization, it is worth the efforts of the United States to try to maintain good relations with
other countries. It should have flexible regulation when it comes to matters of trade and the
whole economy(Cohen & Boyd, 2000, p. 5).

GLOBALIZATION IN AMERICA

6
References

Berberoglu, B. (2002). Labor and capital in the age of globalization: The labor process and
the changing nature of work in the global economy . Lanham, MD: Rowman&
Littlefield.
Choate, P. (2008). Dangerous business: The risks of globalization for America. New York:
Alfred A. Knopf.
Cohen, S. S., & Boyd, G. (2000). Corporate governance and globalization: Long range
planning issues. Cheltenham, UK: Edward Elgar.
Friedman, T. L., &Mandelbaum, M. (2011). That used to be us: How America fell behind in
the world it invented and how we can come back. New York: Farrar, Straus and
Giroux.
Haugen, D. M., & Mach, R. (2010). Globalization. Detroit: Greenhaven Press.
Karoly, L. A., Panis, C. W., United States., Rand Corporation., & Labor and Population
Program. (2004). The 21st century at work: Forces shaping the future workforce and
workplace in the United States. Santa Monica, CA: RAND.
Tsuji, M., Giovannetti, E., &Kagami, M. (2007). Industrial agglomeration and new
technologies: A global perspective. Cheltenham, UK: Edward Elgar.