Effects of Globalization on America
Although there are varying effects of globalization on America, the main focus has been on the health of the economy. Generally, globalization has had far-reaching impacts on the economy of the United States and its citizens. These impacts vary from positive to negative, based on different factors of growth and development. However, a majority of Americans view globalization as an aspect of development with more positive impacts than demerits. In fact, the public is becoming more familiar with the concept, which they consider to be not only an economic process but also an ideal way of enhancing the interconnectivity of the world.
The Main Effects of Globalization on America and its Citizens
Just as hinted above, the effects of globalization on America vary from the positive to negative. This means it has on one hand, benefited the country and also hurt other aspects of growth and development. The following are some of the ways through which globalization has impacted America and its population;
Globalization has opened up markets across the world, where America can now conduct trading with different partners. In fact, many American firms can now trade with the rest of the world freely. This has ensured a significant increase in the number of multinational corporations, operating within the American market and also across the world. Through trade, America has been able to maintain a top spot in the global economic grid.
Through globalization, America has also been able to create and develop ties with other countries across the world. Today, it is quite easier for people in America to communicate with the rest of the world in real time because of technology. This has ensured greater convenience in the way that America relates with the rest of the world. Besides, it has also encouraged the formulation and implementation of policies for growth.
Over the years, the cost of production in America has been on the rise due to the high cost of raw materials, labor among other factors. As a result of this, the revenues of many firms had started diminishing, with some even facing the threat of being phased out of the market. Through globalization, American companies can now breathe a sigh of relief since they have been able to acquire cheaper raw materials and labor from foreign countries. In fact, quite a number of American companies now do most of their production in foreign countries like China and India, where the costs of manufacturing are still very cheap.
Since many American firms are now opting to outsource or do their production in foreign countries, there is lack of employment opportunities for the local population. This has not only hurt individual incomes of many Americans but also the overall economic growth. When American firms are allowed to outsource, it means most of their jobs are transferred to foreigners. Besides, even the taxes that they ought to pay to the American government are passed onto the foreign countries.
Although there are jobs in America, globalization has ensured a significant decrease in the wages. America welcomes an estimated 1.1 million immigrants annually. This influx of foreigners negatively impacts the wages since they offer cheap labor to the firms. Due to the dwindling number of jobs, Americans are left with no option but to also compete for the low paying jobs for survival.
Globalization has also impacted cultural exchange between America and other foreign countries. In the process of trade and other activities, there is movement of people and information to and from America. As a result of this, America gets to import various cultural practices from various parts of the world. Besides, Americans who get to travel to other foreign countries also take with them their cultures, which are then integrated with those in the countries they reside.
Conclusion on the Effects of Globalization on America
Generally, there are various positive and negative effects of globalization on America. However, many Americans agree that globalization has ensured rapid growth and development in various sectors of the economy, which could have taken quite a long time to realize. With the right policies and other elements of development, there is hope that America will continue to thrive and maintain a top spot in the global economy.
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