Consumers Are the Winners in The Globalized Economy

Introduction 

Collins (2015, para.1) defines globalization as “ a regularly defined as an enlargement of economic activities or transactions beyond the physical boundary of a country, with the basic feature of being an international trade or the free market .” Neo-classical cohorts of globalization mention the benefits from globalization to include higher standards of living, higher consumption levels, lower prices, higher productivity, and ultimately greater efficiency that would be of great benefit to the consumers. Proponents of globalization have the perception that the gains of globalization make up for the failures of globalization since consumers worldwide would be better off ( Nagle and Müller, 2017, p.10) . However, the benefits of globalization tend not only to be concentrated in regions or countries that are developed but also in high-income bracket consumers. Globalization has its fair share of disadvantages since it increases inequality among people and countries. Also, globalization has placed consumers in danger of economic crisis at a scale greater than what has been experienced before. Consequently, higher-income consumers in western, developed nations seem to benefit the most, the consumers emerge as complete winners in a globalized economy. This paper will analyze the benefits and limitation of globalization to the consumers and of consumers emerges winners in globalization.

Why are Consumers are the Winners 

Globalization is important to a country since it provides people with choices on services and goods. According to Statistica ( nd, para. 2), the imports of America in 2009 was 1.9 trillion dollars whereas in 2017 it was $2.9 trillion. In 8 years, the imports of America increased by over $1 trillion. The increase in total value of US imports is attributed to an increase in the different types of goods imported in the USA ( Abubakar, Rangaka, and Lipman, 2016, p.87) . Globalization has made it possible for consumers to have a diverse purchasing choice. The major catalyst to globalization is the internet ; it has contributed to buying choices. The consumers can surf the web anywhere they are and buy the different products that are available. Stark (2015, p.15) observed that globalization had altered the buying pattern and behaviors of consumers. Majority of the goods are found in websites that a consumer can purchase as per their choice. Globalization has made it easier for consumers to buy goods from other counties through websites such as eBay and Amazon. These websites are an important aspect of globalization since it provides consumers with choices on services and goods they want to access.

Globalization has led to Increase in quality of goods and services due to competition. Since consumers can access the same kind of goods at a time, different companies that offer the same type of products have gone an extra mile to improve their products or services to attract more customers. Gereffi and Fernandez-Stark, (2016, p.9) observed that for a company to attract more customers and ensure the consumers remain loyal to their products the quality of goods and service produced must be high. Samsung and iPhone are two products whose quality has been improved because of globalization. Samsung is manufactured in Japan whereas the iPhone is manufactured in the United States of America. The two manufacturers of these phones are doing everything possible to outdo each other regarding the quality of products they produce ( Austine, Sunday, and Raymond, 2014, p.13) . Globalization has made people to know the different product and to attract customers these two companies increase their quality of goods and services to compete with each other. Because of globalization, these two companies have dominated the mobile industry, and they have been able to maintain the quality of their goods and services.

Globalization has led to a decrease in prices of goods and services without compromising the quality. The consumers from developed countries have greatly profited from globalization via buying of services and goods that are manufactured or produced in the developing countries. From televisions and smartphones manufactured in China to apparels manufactured in countries such as Bangladesh and Vietnam, the products have become available to the consumer who hails from the developed countries ( Gereffi and Fernandez-Stark., 2016, p. 95) . Producing or manufacturing of these services and goods in low-wage developing countries help in reducing the costs of manufacturing, and ultimately, the prices of services and goods to their consumers in developed countries ( Nagle and Müller, 2017, p.14) . As clients pay for goods and services that have relatively low prices, the actual income may have increased. The consumers from the developed country have enjoyed a wide variety of service and goods at prices that are relatively low which may have improved their standard of living. Consequentially, globalization has most benefited the consumers from the developed countries.

Globalization has led to the elimination of tariffs that has promoted trade among countries. Before globalization tariffs used to restrict the movement of goods and services from one country to another and this made the services and products much expensive ( Kannan, 2017, p.20) . The United States of America has entered into a trade agreement with other countries to scrap off tariffs so that it can sell its goods at lower prices in other countries ( Dinitc, 2016, p.23) . The North American Free Trade Agreement (NAFTA) is the best example of a trade agreement that has helped the members to enhance business amongst themselves. China is the second largest world economy ; it has not entered into any trade agreement since it prefers trading directly. This has helped China strengthen its economy. The trade agreements between economic blocks or countries have made it possible to reduce prices of commodities without affecting the quality of products.

Furthermore, globalization has led to an increase in employment opportunities. Globalization has led to the establishment of more business, factories, and organizations ; this helps in the creation of more employment opportunities. In some countries globalization is more pronounced compared to other countries, this creates many job opportunities in countries that have a high rate of globalization ( Grayson and Hodges, 2017, p 23) . For instance, in the USA and China globalization is more enhance hence the two counties have more job opportunities and better pay . According to the Bureau of Labor Statistics (2018, para.3), America experienced an increase from 16.9 percent to 17.1 percent in the civilian labor force that was foreign-born. It implies that many people migrated to America to be employed. In America, for instance, the unemployment rate in 2008 was 5 percent whereas in 2018 was at 3.9 percent. In 2008, the rate of globalization was not as what it is today ; this explains the high unemployment rate in 2008. As years progress a county become more globalized, it means more job will be available, and this explains why the unemployment rate in the USA in 2018 was at 3.9 percent ( Marra, 2016 p. 101) . Nigeria, a less globalized country had an unemployment rate of 26 percent in 2008, but in 2017 it had an employment rate of 7.04 percent ( Bureau of Labor Statistics, 2018, p. 1). Since the USA is more globalized, it has less unemployment rate compared to Nigeria which is less globalized. 

Why Consumers are the Losers 

Globalization has led to environmental degradation. Since many industries have been developed as a result of globalization, the industries have contributed to the degradation of the environment ( Austine, Sunday, and Raymond, 2014, p. 13) . Managing wastes from industries is an issue that is yet to be addressed completely. The effluent from the industries such as smoke, chemicals, and hot water is released to the environment by the industries and have caused great damage to the environment ( Milanovic, B., 2016, p. 234) . America is the greatest contributor to air pollution. As per 2018, the contribution rate of air pollution in America stands at close to 40 percent ( Austine, Sunday, and Raymond, 2014, p. 13) . In 2008, the rate at which America contributed to air pollution was 30 percent. In 2008 America was less globalized as it is presently.

Also, globalization has led to a growing disparity between the rich and the poor Marra, 2016 p. 105) . The increasing difference between the poor and the rich is caused by income inequality since more money is concentrated on the rich who can save and make more investment whereas the poor live from hand to mouth ( Milanovic, 2016, p. 20) . Developing counties are more susceptible to income disparity which is attributed to uneducated population and poor management of the counties by the leaders. In counties such as Mexico Cuba and other Latin counties, the disparity between the poor and the rich is high compared to a country such as America and China.

Moreover, globalization has led to the rapid spread of deadly diseases. Due to industrialization, the quality of life has decreased immensely. Foods have been modified genetically, and this is one factor that has led to the rapid spread of deadly diseases such as cancer, Ebola, and HIV/AIDS ( Dinitc, R., 2016, p. 124) . In comparison to Pakistan, America has a high prevalence of the deadly diseases due to a poor lifestyle that is caused by globalization ( Abubakar, Rangaka, and Lipman, 2016, p. 87) . In 2015 America experienced close to 0.82 percent incidence of new cancer whereas Pakistan experienced close to 0.40 percent incidences of new cancer ( Milanovic, 2016, p 156) .

Lastly, globalization has led to the unfair working condition. People migrating from their countries to search for greener pastures in other countries may end up being exploited since not all rights of the immigrants are enshrined in the constitution. Saudi Arabia is a county which exploits its foreign workers, especially who hail from developing countries and perform manual jobs. Marra, (2016, p. 592) observed that close to 60 percent of people who hail from developing countries in Asia and Africa were harassed or tortured in Saudi Arabia. Many people are lured to Work in Saudi Arabia by being promised bumper harvests, but they end up being underpaid and tortured. Also, it is worth mentioning how America provides unfair working conditions to the foreign workers or immigrants ( Marra, 2016 p. 106) . Foreign workers or immigrants are paid less compared to the citizen of America yet they perform the same duties. Also, the workers are not offered health insurance similar to the citizens of America ; they have to pay for medication from their pockets.

Conclusion 

Globalization has been seen to create convergence in things such as economic growth, the standard of living and income, etc . Globalization has brought many anatases that have modernized the world. Modernization has greatly impacted the business sector since doing business has become easy through technology. The advantages of globalization cannot be ignored since we can see and feel them. Globalization has bettered our living conditions and standards since it has created many opportunities that human beings can exploit. As much as globalization has brought immense advantages to our lives, it is worth mentioning the disadvantages or the limitation that it has. Inequality, high costs of living, environmental degradation and development of deadly diseases are some of the disadvantage that comes with globalization. Even though globalization has disadvantages, the advantages outweigh them. If the planned well majority of the disadvantages of globalization can be either solved or mitigated, and therefore globalization should be positively embraced since it is crucial for any country. In a country or economy that has undergone globalization consumers are the one who emerges as winners.

References

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