Impact of Globalization on the United States of America, Research Paper Example

Globalization is the process of uniting people all over the world into a single society so that they can work together. The word can be refer to integration of economies of different nations into international economy through capital flows, trade, migration ,the spread of technology and foreign direct investment. The process is driven by technological, economic, biological, sociocultural and political factors (Bhagwati J.2004). Globalization has both positive and negative impacts on a country. Global manufacturing and trade is generating substantial benefits as it captures economies of scale but costs are also there.

Environmental Pollution

In addition to the benefits of getting cheap goods, United States citizen also benefit significantly from decreased environmental pollution by toxics .this is because with globalization, it means less manufacturing industries they supplement local goods with imported ones. More substantially and different groups of producers and consumers continue to capture benefits of globalization at the cost of a few citizens in some areas who bear the burden of health impacts resulting from transportation processes because importing goods means increased transportation and consequently increased release of carbon dioxide and also increased noise pollution not to mention driving up of the future energy prices. Through globalization, global environmental problems like over fishing on oceans, cross-boundary pollution, and climate changes are solved through discussions.

Outsourcing and Offshoring

Globalization has led to an increase in outsourcing as industries constantly exploit the benefit of cheap labor and raw materials. Imported goods requires more transportation, increasing carbon dioxide  emissions and driving up the future price of energy, The results of outsourcing is loss of jobs to the local citizens with the industries benefiting from reduced production cost due to the cheap raw materials and labor force especially from Asia. In addition off shoring has also increased with globalization as industries relocate to areas where there is availability of cheap labor and raw materials and consequently job losses increase. Another impact is the development of tax havens where countries prefer to base their activities in these countries and enjoy reduced corporate tax rates.

Trade and Integration

With globalization, United States enjoys promotion of free trade as tariffs are eliminated and free trade with no or small tariffs are created. With free trade local business subsidies are harmonized, reduced or completely removed. There is also emergency of worldwide financial markets and companies and consumers have a free access to a broad range of products and capital. As a result of integration, international justice movements and international criminal courts have been launched and sporting events like FIFA world cup and Olympic Games are held.

Migration

Globalization has led to increased immigration in the United States of America. In such case U.S takes advantage of cheap labor hence increased income. Immigration results into increased cross-cultural contacts and diffusion of cultures. This is because of the rise in desire to adopt new technologies and practices, and the desire to use foreign products and ideas.

Technology

Advancement of technology has been witnessed as transborder data flow increases. There has been development of global telecommunication infrastructure using technologies like submarine fiber optic cable, internet, communication satellites and wireless telephones. This has created what has been often referred to as global village.

Transport

Globalization results in reduced transportation costs due to the development of containerization used in ocean shipping. With decrease in transportation prices movement of people and goods into the United States has also increased. This has led to development of logistics companies and third party logistics providers that have majored in transporting both facilities and goods on behalf of these companies that have an international outlook. (Amazon.com, 2009)

References

Amazon.com (2009).Advantages of globalization. Retrieved 21 July 2009, from www.squidoo.com/globalizationboonorbane

Bhagwati J. (2004). In Defense of Globalization. Oxford, New York: Oxford University Press.