GLOBALIZATION

Does Globalization Raise Living Standards?

Does Globalization Raise Living Standards?

Introduction

Globalization is the creation and expansion of economic and social connections among people and organizations around the world. These processes can range across a wide range of affairs, but all point towards the internationalization of everyday life. Globalization enabled ownership of trade and foreign asset to hit new highs in relation to world income. There are numerous economic benefits associated with globalization, however it also specified increase to different issues like income of poor and concerns relative to health. This essay will argue that globalization raise living standards because of better economy, quality of health, increase in trade and increase in domestic and global income.

Discussion

The first reason for rise in living standards of people as a result of globalization is due to better economy. First of all globalization improves the standards of people in terms of increase in income and improvement of infrastructure. According to Polaski (2007), globalization in Unites States ensured the sharing of rising productivity and profit levels with the workforce in terms of higher wages, insurance plans related to health and pensions. With globalization, progressive policies regarding taxation in United States redistributed the income from corporations and high wage earners to public investments and policies that benefited the middle and working class including improvement in infrastructure like well built and maintained roads and schools and provision of subsidies to higher education. The political agreement in favour of Keynesian demand management sustained steadily rising minimum wages and benefits related to social security.. Globalization raised the success of the U.S. economy in terms of gains in income, living standards and a growing middle class (p. 2). The global economic integration is a powerful force for increasing the income and hence improves various aspects of welfare and income. In order to achieve improvement in health outcomes of people through income, development in international architecture in terms of intellectual property rights is required (Dollar 2001, pp. 827-833). According to Griswold (2000), Hong Kong, Singapore, Taiwan and South Korea improved their living standards through their domestic economies deregulation and opening themselves to worldwide markets (p. 5). Secondly, globalization also raises the standard of living in terms of availability of more jobs to people. According to Rybinski & President (2006), globalization enhanced the living standards by lowering prices, enhancing the quality and increasingly diversified service and product offerings. Following accession of Poland to European Union, globalization creates jobs in Poland as a result of foreign direct investment and investment projects that Polish companies implemented to increase the export production. With globalization in Poland, more than one million Poles obtained better jobs making 300 euro a day (p. 4).Globalization in United States changed the economy of United States during the time of technological innovation. The United States labour department showed that three quarters of Americans were working in the economy sectors that is relatively insulated from the trade and were displaced to the manufacturing sector. The international trade enabled the displacement of job in manufacturing to raise ...