Indeed, globalization is the most popular trend in international economics. Increasing integration of world markets and exchanges of information and technology are definitely expected to help the developing world. Thus, the thesis of Bhagwati’s book, In Defense of Globalization, must be agreed with. After all, foreign direct investments are an extraordinary boost for the economies of the developing world. Moreover, by importing and exporting more goods and services than before, a developing nation may very well increase its income and also improve the standard of living of its peoples.
However, an increase in international trade is usually accompanied by an increase in income inequality, seeing that the majority of the people in developing nations are poor and cannot afford to purchase relatively expensive foreign goods in the local market, nor form gigantic enterprises to sell to the foreign public. Furthermore, globalization involves the risk of foreign companies taking advantage of the undeveloped regulatory structures in developing nations. As an example, a foreign water company in Argentina, after the mass privatization of Argentinian business, was said to have been very ethical before it entered Argentina.
The company had connections with France and the United States. All the same, the company turned to poor service in Argentina soon after privatization. The water company was eventually taken over by the government for its careless, irresponsible behavior (Hacher). If managed correctly, though, globalization would continue to help our world in significant ways. Hence, I would like to add to the thesis of Bhagwati’s book the famous observation of Friedman: “No two countries with McDonald’s have fought a war against each other since each got its McDonald’s.
” Indeed, peace is conducive to global economic growth. Works Cited Bhagwati, Jagdish N. In Defense of Globalization. New York: Oxford University Press, 2004. Friedman, Thomas L. The Lexus and the Olive Tree: Understanding Globalization. New York: Anchor Books, 2000. Hacher, Sebastian. Argentina Water Privatization Scheme Runs Dry. Global Policy Forum (26 Feb 2007). 28 Nov 2007. <http://globalpolicy. igc. org/socecon/bwi-wto/wbank/2004/0226argwater. htm>.
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