Is Globalisation good?

Essay by venny_mA+, March 2006

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The issue of globalisation is very debatable. Few causes have been dicussed this intense over the past years. People are confronted with globalisation in their everyday life, as for example when eating at Mc Donalds buying cheap fabric made in Thailand or watching TV soaps made in USA or the internatioal news. Therefore it has become inevitable to think about the dimensions of Globalisation. Globalists and Anti-globalists both have strong oppinions and arguments to the problem. To determine if globalisation is good, the pros and cons of it have to be taken into consideration.

Anti-globalists argue, that the gap between the rich and the poor nations of the world is increasing thru the means of globalisation. Statistiks, showing that the gap in incomes has increased from 30 to 1 in 1960 to 82 to 1 in 2000, show an risky trend in the process of globalisation. Nevertheless, this argument has a certain superficial logic, but the real situation shows other tendencies.

There is mounting evidence that the inequalities in global income and poverty decrease and that globalisation contributed to this turnaround in many ways. In poor countries, that have lowered their tariff barries and entered the globalisation process, the employment rates as well as the national income have increased, due to the numerous companies creating labour by opening new factories in those countries. In addition, companies moving to developed countries often export higher wages and working conditions compared with those in domestic companies operating in the country. As a result it has been proofed that with the increasing wage level in those countries the focus shifts form labour intensive to more capital and knowledge intensive industries and therefor contributes to their developement. The countries that are getting poorer are those not open to world trade as for example many nations...