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Will cultural identity get swept away in the tides of trade globalization? As technology brings notions of democracy and modernization to the deserts, rainforests and icy tundra, what hope is there for distinctive and isolated groups of people to flourish? It's a scary thought to think that thirty poor countries can't afford to run their own offices at the Geneva headquarters of the World Trade Organization. Therefore, representatives from other countries must decide what's in the best interests of the impoverished nations, giving them no control over their own economies. Yet, as if by magic, the invisible hand of globalization trade brings a mixed blessing: general prosperity aims to bridge the gap between rich and poor, which works to an extent. Just as the Industrial Revolution pushed much of the world forward, the effects of globalization most noticeably pull the rest of the world to catch up.
The effects of globalization are shared by consumers, workers and nations alike. The most basic principle of economics is that competition ensures quality, drives down prices and offers choice for consumers. For workers, competition means higher wages, and sharing in the benefits of globalization. Nations can become competitors in the global market, increasing GDP and per capita incomes, while gaining greater access to raw materials.
Undoubtedly, the effects of globalization are best seen in developing nations - places like Korea, Singapore, Bangladesh and India. Over the last few decades, the number of people living on less than $1/day has been cut in half for the developing world engaging in global trade. However, for untouched regions like Sub-Saharan Africa, the poverty levels have remained fixed at 45% of the populace since 1981. Additionally, average life expectancy has gone up from 55 to 65 over the last thirty years and infant mortality rates have fallen roughly 10% in areas kissed by business globalization.
In the presidential debates, you hear a lot regarding dealing with China. Less than fifty years ago, it would have been laughable to worry that China would replace the United States as an economic superpower. However, China has gone from contributing 0% of the world economy to 12.5% by 2006. The US economy's contribution to the world economy is 21%, still putting us ahead of the pack, yet China is exporting more technological products than the US by far. US-China trade globalization has risen from less than $2.5 billion in the 1970s to $262.68 billion in 2006! World globalization means good news for China and other aspiring nations, but what does this mean for the US? The effects of globalization can really help the developing world on one hand. On the other hand, it shifts the most prosperous nations around from power to superpower like a delicate game of chess.
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