"Global corporations claim they spread modern technologies 50 years ago, There are some exceptions to this, especially dur- around the world. But technology is good only if you have access ing recessions, but it's better to live in a world where 25 percent to it. In Africa, you have no on-ramp to the Internet. You need of the people are affluent and 75 percent are poor than a world access to a computer, which is difficult or impossible in countries in which nearly 100 percent of the people are poor, as was the where people make only a few dollars a day. When you're paid case throughout most of history. There is a strong role for govern- such a low wage, how can you afford technology? How can you ment in all this. Countries benefit from trade, but governments are afford to see a doctor? Globalization is widening the gap between responsible for protecting citizens from the negative or unintended rich and poor. As inequality grows, people have less and less consequences that trade may bring." in common. Multinational companies exploit poor countries and expose their people to harmful competition. Infant industries in Activist developing economies can't make it when they're confronted with the power of giant multinational firms." "Governments have not done enough to regulate the excesses of capitalism. We saw this clearly in the recent global financial and economic crises." Business Executive "Companies increasingly recognize the importance of being good The Outlook for Globalization global citizens. Motorola has profited from its business in China, but it also contributes to developing educational systems in that In recent years, nationalistic sentiment has triggered an "our coun- country. There are more literate people, especially literate women, try first" mentality and skepticism or outright hostility toward global- In China than ever before. Japanese MNEs Invest In the commu- ization. The election of Donald Trump as president of the United nities where they do business. Companies are not all evil; they States gave way to anti-trade policies and efforts to reduce immi- do a lot of good for the world, too. Bill Gates is doing more than gration. After taking office, the Trump administration began rene any government to get people computers and connect them to gotiating the North American Free Trade Agreement (NAFTA) and the Internet. He has created the world's biggest fund to combat withdrew from the Trans-Pacific Partnership (TPP). In 2016, the diseases of the poor. He and Warren Buffett are tackling many of United Kingdom voted to withdraw from the European Union. "Brex- these diseases. GlaxoSmithKline is working with the World Health it" voters were motivated by concerns about national sovereignty Organization to find a cure for elephantiasis, a terrible disease that and increasing immigration into the United Kingdom. Elsewhere in ravages people in Africa." Europe, nationalist political parties came to power, reflecting a pop ular backlash against open borders and unfettered globalization. Trade Official Labor unions, human rights activists, environmentalists, and religious groups are among those opposed to globalization. "Globalization is complex and it's hard to tease out the good and Recent events represent a step backward from long-standing for- the bad. Globalization has made rapid progress. Global poverty ward movement on free trade and global commerce. Many experts has declined and social Indicators are improving around the world. view the backlash as a predictable, temporary pause in the evolu- It's true that income disparities have increased over the past 50 tion of globalization. They argue that large-scale transformations years while international trade has integrated the world economy. often progress in fits and starts-one step back for every two steps But the world has experienced a generally rising tide in terms of forward. However, no one knows for sure what the future holds. Is living standards. People everywhere are better off than they were globalization receding, or is it here to stay?Q1. In the Globalization Debate case, who is right? The Activist, the Business Executive, or the Trade Official? Whom do you agree/disagree with? Why?CLOSING CASE A Debate on the Good and Harm of Globalization People around the world are concerned about the impact of Canada has completed a free trade agreement with Chile. Eco- globalization, which they associate with job losses, declining nomic tles lead to cultural ties and more peaceful relations. Also, national sovereignty, mass migration, and an Intrusion of foreign it's hard for our government to promote freedom and democracy values. Globalization has become a central theme in political, around the world if we're not promoting free trade." economic, and academic discourse, Recently, a major university sponsored a roundtable on the broader implications of globaliza- Activist tion. The participants were an anti-globalization activist, a busi- "We cannot overlook the detrimental effects of globalization on the less executive, and a government trade official. Excerpts from the exchange provide diverse perspectives on globalization and natural environment. The more we trade internationally, the more international business. irreparable harm will be done to the environment. International business means more environmentally damaging development. Companies internationalize so they can become more efficient. Activist But if countries have weak environmental standards, then factories "One problem with International business is that it often ignores will be built with minimal environmental standards." human rights and basic labor standards. Low-wage factories abroad create substandard working conditions. The activities of Business Executive multinational companies not only result in job losses here at home, "If we trade internationally, then living standards will increase ev- but also in low wages and exploited workers around the world. Just erywhere. As living standards rise, awareness of and care for the think of the sweatshops in Asia that make imported clothing. Think environment will also increase. International business is good for of the autoworkers in Mexico who live in horrible conditions and the world because it creates wealth. The more affluent the people make only a few dollars a day, Also consider the poverty caused the more they will care about their environment and pass laws to worldwide by the recent global financial and economic crisis." protect it. We are also becoming more responsive to concerns over social responsibility and environmental degradation. We have Business Executive shown that a good economy and a clean environment are not mu- "Our country needs to participate in the global economy. tually exclusive. We can have it both ways: a clean planet and a Companies that export provide better-paying jobs, have more better quality of life." profits, pay higher taxes, and stimulate purchases from local suppliers. Foreign companies that invest here create new jobs, en- Trade Official hance local living standards, and pressure our firms to stay com- "I think part of the solution is to negotiate trade agreements that petitive in a challenging global marketplace. Exporters pay higher take environmental factors into account. International trade that wages and provide better benefits than non-exporting firms do. disregards legitimate environmental concerns is counterproduc- Many companies need access to foreign markets because of the tive and defeats the political agendas of most governments around huge, upfront research and development costs they accumulate. the world. It is clear that international trade must take environment One more pill is cheap; It's the cost of research to find a cure for tal concerns into account." AIDS that Is prohibitive. Pharmaceutical firms can't do the nec- essary R&D unless they can amortize those costs over a huge, Activist global marketplace. In the long run, uninterrupted international commerce is good." "International trade interferes with the sovereignty of national gov- ernments. When Apple or Toyota are bigger than most countries Trade Official in Africa, it is harder for governments to manage policies regard- ing taxes, monetary policy, social issues, and exchange rates. And "The current administration believes in the value of free trade. who are we, trying to impose our own cultural standards on the The government strongly supported NAFTA, and this has already world? When I travel in Asia or Latin America, I see Mcdonald's all had a positive effect on the economy through increasing exports to over the place. They see Western powers exploiting globalization, Mexico, creating jobs, and leading to improved investment oppor harming the economic, cultural, and environmental interests of the tunities. Countries are forging ahead with international trade ties. rest of the world