The Economic Impact of Globalization on the US

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The Economic Impact of Globalization on the US

The extensive globalization has resulted in the connection of various countries. As a result, the United States government has been forced to initiate agreements and other aspects to nurture relations. In the process, it has been easier to access better opportunities and the ability to expand the existing multinational brands. However, some negative consequences have arisen due to these new circumstances. This essay evaluates how globalization has resulted in adverse economic implications on the US regardless of the fewer benefits captured.

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On the other hand, employment has reduced in developed countries due to the reduced production costs in developing nations. The situation has resulted in negative implications that might interfere with the economic well-being of these countries. Reduced production costs, lower taxes, and improved infrastructure in developing nations like China, India, Mexico, and Malaysia have encouraged more Western companies to seek other opportunities (Denicolai, Strange, & Zucchella, 2015). For instance, companies such as Apple, Nike, H&M, and Dell have been outsourcing labor from other countries (Denicolai et al., 2015). Based on these factors, more companies are also moving their production plants to enjoy such opportunities. Unfortunately, only these firms are benefitting from offshore outsourcing, yet the economic growth and employment rate have suffered. For instance, the unemployment rate has increased in the offshoring country because all the manufacturing jobs have been moved to abroad countries (Gurtu, Searcy, & Jaber, 2016). The scenario highlights how globalization has resulted in some negative implications that are undermining the effectiveness of the ideology.

Globalization has encouraged the idea of free trade that allows more economic activities, but it is also associated with some adverse implications. Free trade has been popular due to the ability to lower tariffs, barriers, quotas, and offer more subsidies (Paul, 2015). In the process, countries have been free to engage in trade activities without any serious concerns. The situation has allowed even the developing countries to access a broader market, thereby increasing the profitability that they want. However, free trade has resulted in other members of an agreement dumping their goods in the United States (Paul, 2015). The scenario has resulted in adverse consequences on the operations of American firms. For instance, the presence of more foreign products might create a higher competition for the domestic entreprene