Winners & Losers of Globalization

It is impossible to discuss in one paper all concepts and issues that relate to the winners and losers of globalization, but , this paper briefly discusses who the pronounced winners and losers of globalization are in today’s world economy. The paper pays close attention to the factors that account for the successes and failures of the winners and losers of globalization respectively. To start with, globalization, as Hill and Hernandez described in their book of Global business today, refers to “the shift toward a more integrated and interdependent world economy,” (Charles W.

L. Hill & William Hernandez- Requejo, P 33). Broadly speaking , it is clear that the world Is moving towards ‘a global village’ due to the decline of barriers to cross-border trade and investment, and advances in transportation and telecommunication technology.

However, this does not mean globalization led to a better world for all. Looking into the impact of globalization worldwide, it is profoundly true to say that we have two categories: Winners and Losers .

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The parties in either category can be viewed as competitively advantaged or disadvantaged by the process of globalization. Briefly , let us first address who we assume to be the winners of globalization. We have many different parties who we believe that they competitively have the upper hand in today’s global market- Developed nations( The U.S and European countries), large firms who produce exportable goods, consumers who buy imported goods, Entrepreneurs who work for profit, companies endowed with highly skilled and educated personnel, countries that enjoy political stability and favorable government rule, and nations that have favorable economic policies, to name only a few- these are some of the parties that seem to dominate the global economy and enjoy the fruits of globalization in today’s world.

Above all, a few countries in the world dominate global economy and are seen to have greatly benefited from globalization. The U.S. , for instance, is estimated to produce about 25% of the the global GDP. In 2009, the U.S. central intelligence agency reported that the U.S. GDP was valued to be over $ 14.4 trillion. ( factbook,www.cia.gov). On the other hand, those who feel like they were cut off from the many privileges of globalization include: some poor -developing nations (most Africa & South America), domestic firms that produce importable goods, consumers of exportable products, workers who work only to earn wages, small firms that lack skilled personnel, and countries that have political instabilities or under the rule of Totalitarian government, and those who experience unfavorable economic policies.

Many will argue that having possession of some factors of production such as capital, land and labor in abundance accounts for the success of the winners of globalization. Yes I couldn’t agree with them more, but, looking at it deeply, I strongly agree with Amartya Sen who said that “development should be seen as a process of expanding the real freedom that people experience. Hence development requires the removal of impediments of freedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as the intolerance of repressive states ,” ( page,91).

Winners of globalization have been successful because they succeeded in removing these impediments. Conversely, the loser of globalization’s failures can be accounted for a number of factors: “Totalitarian government, economic policies that destroy wealth rather than facilitate its creation, endemic corruption, scant protection of property rights and war,” (P.60). Hill and Hernandez also pointed out some “40 or so highly indebted poor countries (HIPCs) that are trapped in a cycle of poverty and debt which inhibits economic development,” (P.61). Overly, as the trend towards globalization worldwide increases some countries’ economies grow more rapidly while others are dragged into the sidelines. The predominant factors that determine the destiny of the winners and losers of globalization are more of the freedoms, and opportunities that people enjoy than the process itself.

Reference:

Charles W.L. Hill & William Hernandez- Requejo. (2011). Global Business Today (7 ed.). McGraw-Hill/Irwin.

Factbook, www.cia.gov,