By: Mari Bautista
- There is a winner and a loser in globalization
- This process is not new, but its pace and scope has accelerated in recent years, to embrace more industries and more countries.
- Changes have been driven by liberalisation of trade and finance, changes in how the companies work, and improvements to transport and communications.
Globalization has developed ever closing-links since 1950, in trade, investment and production. SInce 1955 globalization has grown very faster than the world economy as a whole, and as for many countries it has been the engine of growth. The way how manufactured goods used to be produced has changed dramatically in the last 50 years as the cost of transport and communication has fallen. Even the free movements of goods, there has been a dramatic increase in the flow of money (capital) around the world. The GDS (global distribution system) of wealth and income is highly unequal meaning that the richest have 10% of households in the world have much more yearly income as the bottom 90%. Wealth is even more unequal and are concentrating in the US, Europe, and Japan, with the rich having 1% alone owning 40% of the world’s wealth, while poverty is widespread across the developing countries. Globalization is mostly like specialization because they are only producing in what they can do and trading it off to get the things they can't produce.
How has globalization impact us
Globalization has greatly impacted the U.S. and the American citizens. Globalization has spread American influence throughout the world. It had opened up more markets for the U.S., which also helps American companies sell their products worldwide. It has increased communications abilities between international organization and nations. This has impact the U.S. in situations such as the 9/11 terrorist attack and has given the U.S the ability to communicate with allies and even with enemies in time of peace but also in time of conflict.