Pros of Economic Globalization

Economic globalization is the process of increasing the economic connectedness of nations around the world. Economic globalization carries with it a wide array of benefits, particularly to those people living in developing nations. The process centers around international trade of goods and services. According to the UC Atlas of Global Inequality, the growth of international trade is a clear indicator of economic globalization.
  1. Increased Employment Opportunities

    • Increased economic globalization leads to increased employment opportunities for people in underdeveloped or developing nations. As corporations penetrate new markets around the world, they will hire people who live and work in these places. Additionally, when large nations--such as China or the United States--sign free trade agreements with smaller, less developed nations, corporations gain incentives to conduct business in these new markets.

    Reduced Child Labor

    • Increased globalization reduces child labor. Over time, as trade promotes economic growth, the need for child labor is greatly reduced. The Foundation for Research on Economics & the Environment states that in 1960, children made up 32 percent of the work force in low-income nations. During the next forty years, nations that benefited from increased economic globalization reduced their share of child labor to 19 percent.

    Increased Life Expectancy

    • Increased economic globalization has lead to advances in medicine, public health policies and food supplies. These advances are directly linked to lowered infant mortality rates and increased life expectancy. The Foundation for Research on Economics & the Environment reports that in developing nations in the 1950s, 178 per every 1000 children died before their first birthdays. By the end of the 1990s, the rate had declined to 64 per every 1000 children. Additionally, overall life expectancy increased from 44-years-old in 1960, to 59-years-old in 1999.

    Increased Environmental Quality

    • As nations increase prosperity, so do they increase environmental qualities. As economies grow, pollution falls. The phenomenon is due to market competition that places a premium on efficiency and innovation. Pollution results in waste of a resource. Additionally, corporations operating in wealthier nations spend necessary funds on pollution control mechanisms. In 1973, the American business sector spent approximately $31.9 billion on environmental mitigation. By 1993, the sector spent $59.3 billion on these efforts.

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