Sample Essay on The Impact of Globalization on the US Economy

Globalization on the US Economy

One of the most debated topics on the economic issues impacting urbanized nations like America is the impact of 5globalization on the US economy (Crawford and Fogarty 55). The main element of globalization is its effect on the disbursement of remuneration and earnings in developed nations including the United States of America. This is foremost, significant in the immense literature on the distributional effects of trade that showed up in the 1990s. Besides, the increased rivalry between political organizations also highlighted the devastating impacts on less skilled and middle-class skilled workforce. It is believed that globalization is damaging the low-skilled personnel in the US because other parts of the world have sufficient low-skilled workforce that earns just a fraction of the salary package offered to the US workforce.

Economists are usually in support of free trace as a way of raising real incomes. If people, organizations and nations focus on production with a relative gain to them, the benefits can be accumulated to each of the partners involved in the trade. Logically, investment flows and free trade also becomes enhanced globally. The expansion of competition across borders widens the capacity for the escalation of collective effectiveness. This could even occur in a vibrant background since broader rivalry may influence novelty. Reduction to trade barriers can expand export destinations, thereby enabling the US companies to acquire larger incomes on their novelties (Lawrence and Litan 65). Globalization has enhanced trade by increasing competition on companies and enabling the American businesses to use capital resources, and information acquired from other countries in order to widen the variety of products accessible to customers. It can also help in cutting down global prices.

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Many US companies have moved quite a number of their manufacturing jobs to overseas nations where business is much cheaper. Besides, service and technological jobs are currently being hit by evacuation to overseas workforce. Globalization has made sure that productivity in the US is intensified. The migration affect the widespread Information Technology in America and this is well exemplified in the escalation. Based on certain estimation, the globalized production of IT hardware curtailed the prices of computer and telecommunications equipment by between ten to thirty percent. These reductions in price facilitated the expansion of IT across the United States financial structure, thereby enhancing both economy and development.
Globalization has led to the loss of so many jobs in America, which impacts decline in the economy. Although job loss as a result of increased trade discrepancies is the most commonly known problem that is linked to globalization, its impact on salary is a crisis for quite a number of employees. The Economic Policy Institute indicates that, ‘’Despite the fact that trade flows are starting to balance and less jobs are going to be lost in the future, the integration of the US economy with those of its low-wage trading partners will drag down the wages for American employees, thereby contributing to the ever increasing inequality of incomes in the US economy’’ (Bivens n.p).

10Foreign investments are among the factors of globalization that might impact the average US remuneration. Foreign investments or the threat of foreign investments by American companies is shifting the focus from personnel and eventually lowering their incomes. This impact extends even to the elite, only at the start of the development towards business ‘outsourcing’ of highly skilled personnel (Wolman and Colamosca 1997).

The influx of supra-territorial markets flourished through the circulation of global business organizations, tactical alliances and mutual lobbying whose plans span across borders. The increase of global entrepreneurship has supported several acquisitions and mergers. This move has focused attention on many companies within the US and across the world. Globalization has led to the disintegration of financial instruments and money from the state, and opened new avenues for benefits.

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Work Cited

Crawford, Beverly and Fogarty Edward, “The Impact of Globalization on the United States,” London: Praeger Publishers, 2008. Print

Josh Bivens, “Trade, Jobs and Wages,” Economic Policy Institute, May 6, 2008, web November 12, 2013 <http://www.epi.org/content.cfm/ib244>

Lawrence, Robert and Robert Litan. “Globaphobia: The Wrong Debate Over Trade Policy.” Brookings Policy Brief, no. 24 (1997).

Wolman, William and Anne Colamosca. The Judas Economy: The Triumph of Capital and the Betrayal of Work. Addison-Wesley Publishing Company, 1997.