Globalization

Arguments against Globalization

Globalization will increase poverty in developing nations

• Argument 1:

1. Capital will move to nations where human-rights and labor-rights protections are neglected, where they will find cheaper labor.
   • Counter: This does not increase poverty.
2. The ruling elite in these countries will benefit from their ability to secure foreign currency and goods, but this will increase their incentive and ability to exploit other inhabitants of their country.
3. They will confiscate lands and other natural resources in order to dedicate those resources to exporting industries [1].
4. Access to foreign goods will permit them to support a military and police force that is able to suppress any resistance to their oppressive policies.
   • Counter: This argues that foreign investment in an oppressive country can cement the oppression. It is not an argument for globalisation making the country poorer.

• Argument 2:

1. The increased capital enables the ruling class to confiscate the inhabitants resources in order to deprive the inhabitants of the means of independent survival.
   • Counter: This is an argument against totalitarian rule, not against Globalization.
2. This forces them to sell their labor to export industries owned by the ruling elite.
   • Counter: Selling your labour (otherwise known as having a job) does not imply poverty.
   • Counter: The exporting industries are only exclusively owned by the ruling elite if the state forbids free enterprise. Thus this is more an argument against state monopolies than Globalization.

Globalization will increase poverty in developed nations

• Argument 1:

1. Workers in developed nations will face greater competition from cheap labor in developing nations.
2. This will cause wages to decrease, and cause industries to leave these nations.
3. This results in larger numbers of working poor and unemployed.
   • Counter: It may be possible that a country can be hurt; however, the net gain both in poorer countries that need the wealth more, and net for the world can overshadow this due to comparative advantage[[2]].
   • Counter: Although globalization will cause jobs to move from one country to another, this does not typically make the country that looses the jobs poorer.
     1. Because the products are still consumed, but now for a lower price than before, the consumers of the product, both in the original land of manufacture and in other countries, will get more money over to consume other products.
     2. New jobs will therefore be generated.

Arguments for Globalization

Globalization will slowly even out economic gaps between nations.

• Argument 1:

1. When a corporation move to another (developing) nation for cheaper labor, they hire inhabitants and give them wages.
2. When the workers in this country realize that they are on demand, they'll slowly be able to request higher wages.
   • Counter 1: Workers demand grows but also third world countries popolation does. Which is faster?
     • Counter: In the absense of globalization this problem will still exist and also hurt such countries harder.
     • Answer: Worker demand rises faster.
   • Counter 2: This slow evolution may be unstable. World scale revolution may take place which abruptly puts an end to current market based world order.
   • Counter 3: This slow evolution may be untimely, globalization driven pollution having destroyed the environment in the mean time.
     • Counter 1: Economic development improves a country's ability to have high standards of living while being able to decrease pollution. While countries such as America unfortunatelly do not curb pollution to optimal levels, this is not essentially the fault of globalization, and is part of a broader issue that requires international effort.
     • Counter 2: Economically benefitting present humanity is worth some pollution as long as the welfare increases as a whole.
3. Though the corporation might move to another country temporarily, in the end all poor nations will demand higher wages, because their economic standard has been raised.
4. Standards in personal rights (as per the Coase theorem) rise just like wages

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