Definition
Globalization plays a major role in the process of economic, political and cultural integration as well unification. Many countries are involved and a majority of big enterprises.
Application
Globalization debate has focused more on the macroeconomics challenges of the overvalued dollar as well as the persistent United States deficit. There are other major impacts of trade that are not of importance. The value of the dollar may reach sustainable levels leading to success in reduction or losing of the trade deficit. This will result in the working class Americans facing lower wages as a result of globalization. Due to this, policy makers ought to pay close attention to the effects of trade and wages.
Delegate your assignment to our experts and they will do the rest.
Discussion
One of the major consequences globalization impacts is on wages that are made worse by the overvalued dollar acting as a factor to expensive imports and exports. According to Destler (2005), this effect is felt beyond the workers in the tradable sectors as the foreign competition drive workers out of these areas such as manufacturing and also non-tradable sectors like service jobs and manufacturing. When there is an increase in this job, there is a further reduction in the wages.
Another setback that emanates from globalization is that many Americas lose their jobs to foreign workers who work for fewer wages ad in poor conditions. The American workforce is forced to compete with foreign workers in the workplaces and is frequently replaced by those workers who are willing to work for less (Raluca, 2010) . The United States as a result of this is facing a significant trade deficit due to globalization, and the US has to figure out how to deal with the deficit if it has to retain its powerful state as a super power.
References
Destler, I. M. (2005). American trade politics . Columbia University Press.
Raluca, P. (2010). Advantages and Disadvantages of Globalization. Ovidius University Annals,
Economic Sciences Series , 10 (1), 768-771.
