I tend to disagree with Mr. Krugman that the globalization process is all about communication and transport technology. In fact, it is through globalization that the world has seen progress in all sectors of the economy such as telecommunication, manufacturing, transportation, agriculture, and health care. Contrary to Mr. Krugman’s opinions, the advancements achieved through this process lifted the standards of poor people when they joined the global economy and welfare. Globalization enabled the development and growth of industries in different countries. This created a wide range of opportunities and provided employment to many people. Through this, many people became independent and self-reliable (Pettinger 1).
Mr. Krugman should appreciate that globalization has made it possible for people from all corners of the world to communicate. Therefore, conducting business from different areas has become possible due to efficient and effective modes of communication. This creates foreign markets, production, and factories. People can easily import what they are short of and export what they produce in surplus. In addition, advancement in technology has made transporting goods from one place to another more convenient. This process involves integration of people in different locations and amalgamation of people’s interactions. These interactions improve traditions, civilization, financial growth, political structure, and the economy. It has encouraged countries to formulate policies that promote both international and domestic growth. International investment and trade have been created because of the presence of free markets in the world (Pettinger 1).
Mr. Krugman does not seem to be aware of the fact that globalization causes delocalization, as many activities that were done locally are now done at various distances. It is advantageous in that, as the world adapts to the new technology, services that involved one-on-one interaction are on the decline. For instance, banking has become easier, as one can receive banking services through electronic media. Although not everything occurs globally, most of the strategic activities that happen locally are influenced by systems and activities of other people in faraway locations. For instance, world markets can have a great influence on almost all activities globally, hence affecting lives of many people (Economist.com 1).
Globalization is a connectivity enhancement that can be felt all over the world. It involves diffusion of practices, technologies, and ideas with a powerful gear to economic, cultural, social, and political dimensions. Contrary to Mr. Krugman’s opinions, globalization brought about multinational corporations and the creation of global markets for goods and services, which increases productivity and competition in the market. It is high time nations embraced the spirit of globalization and paid more attention to poorer nations, since the process can exploit such nations’ political, cultural, and economic systems (Pettinger 1).
Unnecessary outsourcing of services negatively affects liberalization and hinders the creation of new jobs in the local country. Businesses and governments should make effort to develop cheap production methods in order to make savings and better returns on investments. This enables generation of resources, which empowers financial capabilities of a country. The gathered resources are used to fund the government budget in different functions, some of which improve the rate of employment.
It is crucial for workers who are not happy with their wages to earn marginal productivity. Also, if workers are not satisfied with their wages, it is important to support redistributive taxation, as well as identify public investment that enhances productivity in infrastructure and education. However, it is important for workers to have an organized group in order to build better bargaining powers for the salary. Organized labor protects employees from exploitation and harassment by their employers. This became particularly important after World War II when the rates of child labor and workers’ exploitation were at their climax. During that time, industries forced their workers to extend their working hours to unreasonable levels without even compensation (Economist.com 1).
I agree with Mr. Krugman that organizations must offer considerable compensation to their workers. The concerns raised by Mr. Krugman are worth being appreciated taking into account the huge financial waste and enormous wealth acquired through the intimate connection between Washington and Wall Street. The political system should not be used to protect individual interests, and this can be eliminated through embracing the spirit of organized labor (Economist.com 1).
Through organized labor, workers are able to receive compensations that are worth the services they offer to their employers. Although some people have a feeling that organized labor such as labor unions contributes to reduced workers’ performance, it is evident that unions help build workers’ morale through ensuring that they are financially motivated. Absence of labor unions in the workplace would mean that inappropriate workers’ conditions that were witnessed after World War II would return. Employers would exploit their employees in order to generate huge profit and leave their workers literally struggling for their upkeep. It is through organized labor that justice has been possible and workers started enjoying working (Mishel and Walters 1).
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Employers also enjoy working with organized labor because unions simplify the process of benefits negotiation. It eliminates the challenges involved in negotiating with multiple employees through talking to the leader of the union who then passes the message to the workforce. This increases the chances of agreements, prevents time wastage, and makes the process more efficient. Through organized labor, workers acquire the important job satisfaction and realize a better benefit package (Mishel and Walters 1).