Current world problem - Research Paper Example

The industrial revolution increased the production capa of enterprises so much that firms needed to export goods to foreign marketplaces. As a consequence the globalization movement was born. Throughout the 20th century corporations expanded their presence across the globe. McDonalds for example is a multinational company with a physical presence in 118 countries worldwide. The globalization movement thrived due to the ambition of the corporate world. Governmental institutions have a lot of influence over the marketplace.

The proliferation of free trade agreements among neighboring nations has help increase the trading activities of the partners. According to an index of 72 countries by A.T. Kearney small, rich, and stable countries tend to be the most globalized (The Economist, 2011). Two of the most globalized areas in the world are Singapore and Hong Kong. The people of Singapore enjoy a higher standard of living than American citizens. The article entitled One Minute Case for Free Trade written by David Veksler discusses some of the cons of the globalization movement.

Globalization has taken millions of jobs away from the US as companies are outsourcing their manufacturing production to developing countries that offer cheap labor and lower overall production costs. The reason globalization helps promote efficiency in the world markets is because countries that are good at certain things specialize their labor. For example the Japanese are good at producing electronics, while the United States produces a lot of pharmaceuticals. Each country has a talent they can exploit to increase their gross domestic product.

“Some isolationist argue that foreigners have unfair advantanges due to lax labor or environmental regulations, industry subsidies, or restrictions on import abroad”(Veksler, 2007). A lot of Americans believe that foreigners are stealing jobs away from the United States and that something has to be done by the government to protect the local economy. The government could provide a better incentive packages to attract more foreign investors. The use of tax breaks can help entice investors to bring their capital back to the United States.

The best way to create new jobs in the manufacturing sector is through the application of innovation. Innovation occurs when a company is able to invent a new product. A process improvement that changes the capabilities of a product is also innovation. The United States has always been one of the most innovative cultures in the world. An example of American innovation is the technological capabilities of the U.S. armed forces. Multinational corporations are a major player in the international scene due to the fact that their financial wealth is superior than the wealth held by governmental institutions.

There are only 200 countries, but there are hundreds of thousands of corporations worldwide. These corporations have the resources to help solve world problems such as poverty and hunger. There are regions in the world such as the Sub-Saharan African region where people are dying of starvation. The collective efforts of the public and private sector can help alleviate the pain these poor people are going through. The globalization movement is a critical tool that will give humanity the opportunity to collaborate with each other to solve society’s problems.

References The Economist (2011). Globalization: Small is Beautiful. Retrieved February 23, 2011 from The Economist. Veksler, D. (2007). One Minute Case for Free Trade. Los Angeles Times. Retrieved February 23, 2011 from http://oneminute.rationalmind.net/free-trade/?gclid=CPf8zrCBn6cCFUHu7QodaVquQA