The Impact of Globalization

In this first unit, it was very clear to see just how diverse of a world we live in. Due to our diversity, there are always going to be many different views and ideas on various topics, such as with politics or our economy. Globalization is a great example that represents the interconnectedness of our world and people. Out of all of the factors that we have focused on this past week involving humanity, I believe the trend toward liberal free-market globalization has had the biggest impact on people over the last century. The history behind the process of globalization and the different views surrounding the topic has caused some contradiction between people today. In chapter 13 of The Commanding Heights: The Battle for the World Economy, the pro globalization view states, “Those who approve of globalization cite it contributions to economic growth and higher standards of living, health, education, and environmental performance; to lower costs and improved efficiency; to a sharing of technologies; cultural integration; and to share stronger international relations” (Yergin, pg. 382). However, the argument against globalization expresses, “Critics argue that it undermines wages in rich countries, exploits workers in poor countries, hurts the environment, compromises human rights, diminishes sovereignty, concentrates wealth, and gives large corporations too much power” (Yergin, pg. 382). From these two viewpoints, it is obvious to see the impact that globalization has had on many individuals.

Studying the history of globalization and how it has developed over many centuries can help you see how the trend of globalization is still evolving to this day. So how much of an influence has globalization had on our world? “…it represents an accelerating integration and interweaving of national economies through the growing flows of trade, investment, and capital across historical borders. More broadly, those flows include technology, skills and culture, ideas, news, information, and entertainment --- and, of course, people” (Yergin, pg. 383). A lot of factors, for instance, political ideologies, strategies for economic development, the influence of multinational corporations, and advanced technology, have all contributed to the evolution of globalization throughout the years. Since the 19th century, there have been two movements of globalization that expanded the idea. Throughout this last week, I am able to see the viewpoints of both the pro and con side of the popular debate today. Regardless of which side, I believe that the trend toward liberal free-market globalization has affected humanity because the contradictory views shows that globalization does connect people whether they agree or disagree with each other.

The first important movement involving the process of globalization took place in the late 19th century following the First World War. Being able to produce and ship goods efficiently during this time was huge for people. The free-market and trade were beginning to be perceived differently because of the new innovative ways for producing more efficiently. The railroad made internal markets national, the steam engine, made international shipping more beneficial, and the telegraph, changed the way people communicated with one another (Learning Area, Part 1). In the 20th century, another important aspect that had a big impact on humanity was the Smoot-Hawley tariffs that restricted agricultural imports. These limits really impacted the people that own their own farmland. “European overproduction in the agricultural sector (an after-effect of agricultural build-up during the first world war) drove world grain and corn prices down, and thus drastically depressed the value of farmland in the US” (Learning Area, Part 2). I believe that at this time during the trend of globalization, people were still not very convinced of the whole process.

Succeeding the Second World War, the second movement of the trend toward liberal free-market globalization took place, and still continues today. It seemed that since the end of the war, technology advanced faster and international trade increased as well. “The world-wide expansion of trade after the Second World War was largely possible because of reductions in transaction costs stemming from technological advances, such as the development of commercial civil aviation, the improvement of productivity in the merchant marines, and the democratization of the telephone as the main mode of communication”( Ortiz-Ospina, Trade and Globalization). People were producing at lower costs in an effort to earn a larger profit. Like I had mentioned earlier, the ongoing debate that is very relevant today is an example showing how much the trend of globalization has impacted our world, and more specifically the United States. Personally, even though my own views of globalization and free trade are more positive and negative, I have noticed one negative that has really impacted people in our country in the last 5-10 years. Automation may take jobs away from some people. Or even, since items are being manufactured in other countries for a lower cost, people may lose their job here in the US because of that. I remember there was a time when it seemed like more and more people were getting laid off from their jobs. Our world has become highly competitive, and the trend of globalization and free trade has made it very noticeable.

Every one of the factors that we have learned about this past week in the first unit has made some kind of impact in our world over the last century or so. However, it is crazy to think about how many people have been impacted by the trend toward liberal free-market globalization. There have been many examples throughout the history of our world dating back to the 19th century that have developed and contributed to the way that globalization and free trade are viewed today. “It reflects the opening up of world economy, the increasing integration of national economies, and the emergence of the global marketplace” (Yergin, pg. 382).

Works Cited

Ortiz-Ospina, Esteban, et al. “Trade and Globalization.” Our World in Data, 29 Oct. 2018, ourworldindata.org/trade-and-globalization.

The Learning Area: Unit 1 (Part1-6)

Yergin, Daniel. “The Commanding Heights”. New York: Tachstone books, 2002