Globalization had a mixed impact on the economy. On the one hand, globalization was helpful to consumers in the United States. Globalization allowed consumers to benefit from lower prices that could be gotten by importing things from low-wage countries. This process was seen most clearly in the rise to power of Wal-Mart during this decade.
On the other hand, globalization hurt specific sectors of the American economy. Most specifically, it was workers in relatively low-skill jobs in manufacturing who were hurt. They tended to be outcompeted by workers in poorer countries. Manufacturing jobs also declined due to increasing automation as US firms tried to become more efficient so that they could compete with foreign companies.
Globalization has a lot of advantages opening up windows of opportunity and economic affluence to the developing world. Let us see the advantages one by one. Globalization help the developing nations by making trade easier than before one more advantage of globalization is sharing information and ideas.
Moreover, Bauman (2000) argues that globalization is on everybody’s lips and for some people, it is the driver for happiness while for others, it is the main cause of unhappiness and miseries. Multinational and transnational companies have become very powerful and they are believed to be the ones which decide on the socio-economic policies of various nation states, more particularly the developing countries. Korten (1995) (Cited in Seeds of Fire, 2000) seems to be right when he points out that with the formation and expansion of big global corporations and the dismantling of trade and investment barriers, government and people of many countries have been disempowered.
The roles and functions of many national governments to control the behavior of foreign corporations and investors have been reduced nowadays. Developing societies rely much on the foreign direct investment for development and modernization purposes....