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Egb Final Essay

In: Business and Management

Submitted By appaulled
Words 2264
Pages 10
Paul Lee
Economics of Global Business
Prof. Joseph Foudy

Does Globalization help or hurt the average American Worker?

Our grasp on what globalization exactly is, is shaky at best. Whether globalization means convergence, exploitation, or harmonization depends on a range of perspectives, each being impacted differently by a trend of increasing movement and connectedness. In examining whether globalization is beneficial for the average worker in the U.S., we must first define the parameters of our argument. A benefit or detriment to an average worker in the U.S. will be broadly measured by the impact a decision or change has on the U.S. labor force as a whole. Benefits to consumers should also be reflective of benefits to workers as they can be considered the same entity but merely performing different economic roles. A benefit will be defined as any improvement or increase in factors that positively affect one’s standard of living such as disposable income, wages, wealth, or access to goods and services. Within a strict macroeconomic examination of globalization, we can identify three main trends that characterize globalization: increasing movement of goods internationally, re-distribution of labor and capital, and an interconnectedness of policy decisions and economic consequences.
Trends of increasing globalization also observe greater degrees of trade and interaction between foreign and domestic firms. Trade, as a major component of increasing globalization, provides significant benefits for the U.S. worker and consumer. The U.S. and all countries that engage in trade benefit from both a higher quality and quantity of goods than that which is possible without trade. Using comparative advantage and trade, any individual country can receive a quantity of goods beyond the domestic production possibilities frontier. Firms will also compete...

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