Globalization terms of NAFTA (north American free trade

Globalization is not a hot topic right now in the media but that doesn’t stifle its importance, globalization effects billions of people everyday. Globalization is the increasing interaction of economies and people through the growth of the international flow of money, ideas, and culture. Globalization is primarily an economic process of integration of money with strong social and cultural aspects. Many scholars place the origins of globalization in modern times. Large scale globalization began in the 1820s.  In the late 19th century and early 20th century, the connectivity of the world’s economies and cultures grew very quickly and the term globalization established its current definition.Globalization benefits the world’s economies by the removal of trade barriers and opening international markets. Globalization has contributed to the growth of transnational corporations (TNC)—companies that conduct business around the world, often by opening divisions in more than one country. Transnational corporations have a great deal of influence in the countries they operate in. Transnational corporations play a dominant role in a nation’s international economy, particularly in important industries such as oil production, agriculture and many other large internationally traded industrys. Supporters of global trade policies argue that lifting restrictions on commerce generates jobs for millions of people and helps reduce poverty especially in less developed nations.Supporters of free-trade policies argue that removing restrictions on international trade generates jobs and helps reduce poverty however, there is a wide range of opinion on what should be done about globalization. Some believe that the terms of NAFTA (north American free trade agreement), the WTO (world trade organization), the IMF (international monetary fund), and the World Bank should be revised to include more protections for labor the environment, and human rights.While Others insist that these agreements and institutions should not be reformed but must be abolished altogether. Opponents say that free trade hurts local businesses and benefits the powerful interests of international corporations. For example,in America many farmers and business owners are constantly overwhelmed by cheap goods from mexico brought in under NAFTA. Meanwhile, NAFTA has enabled corporations to open more factories in Mexico,where labor is cheaper and environmental regulations are less strict than in the United States. Than these transnational corporations bring foreign goods into the american markets with very little taxes paid. This has contributed to the loss of many manufacturing jobs in the United States and causes more pollution due to less stringent environmental in less developed nations. Many Americans oppose the NAFTA agreement because it harms American workers by exporting jobs overseas and forces americans to face layoffs and pay cuts to stay competitive. Globalization has its winners and losers. With the expansion of trade, market, foreign investment, developing countries have seen the gaps among themselves widen. The imperative to liberalize has demanded a shrinking of state involvement in national life, producing a wave of privatization, cutting jobs, slashing health, education and food subsidies, etc. affecting the poor people in society. In many cases, liberalization has been accompanied by greater inequality and people are left trapped in utter poverty. Meanwhile, in many industrialized countries unemployment has soared to levels not seen for many years and income disparity to levels not recorded since last century. The collapse of the economies of the Asian Tigers are examples of this. The Human Development Report of 1997 revealed that poor countries and poor people too often find their interests neglected as a result of globalization. Although globalization of the economy has been characterized as a locomotive for productivity, opportunity, technological progress, and uniting the world, it ultimately causes increased impoverishment, social disparities and violations of human rights. That is what we see today


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