by Arjun Wadhwa

Created on: April 29, 2009

Almost everyone has now heard the term "globalization". It is a very interesting term, which describes the growth of international trade, monoculture, and global village. Marshall McLuhan once said, "We are increasingly living in a global village".

But who really benefits from globalization? Not everyone benefits from globalization. Many people suffer huge losses because of globalization. Some countries also suffer from globalization.

Developed countries are one of the biggest winners of globalization. Developed countries like United States and Canada had so many resources before globalization began. These resources can be used today to establish businesses in many different countries. Big box stores drive the small businesses out of business. It is tough to compete with low prices that stores like Costco and Wal-Mart are able to offer. Fast food restaurants like McDonalds (also from United States) have different franchises all around the world. They drive many small restaurants out of business.

In addition, developed countries use developing nations for outsourcing. Call centres in India, and production factories has a major impact on education rates. If people can get an easy high paying job as a labour worker, then they wouldn't need an education. Clothing brands have sweatshops in Asia and Africa, and pay workers the minimal. Some people tend to think that jobs are being created in these countries. But these countries don't have the same laws. There is no minimum wage law in many countries. Some workers don't even get enough money to afford basic necessities. But they still continue to work, because they don't have many options.

If globalization had truly occurred, then all the nations would have similar jobs and resources. But the type of globalization, which has occurred right now, has allowed developed countries to legally use slavery in other countries.

It is true that globalization has created economy in countries like India and China. But remember, that these two countries are slowly becoming knowledge-based economies. Many African countries are not. When people think of globalization, they usually think of U.S. and other developed nations having strong ties with developing nations of the world. But the world is not Japan, China, and India.

There are many other countries in the world where the growth of the country has slowed down due to the production factories. There will be generations of labour workers working in poor working conditions if globalization continues to work in the same way as it does now.

In conclusion, the real winners of globalization are developed countries. Companies from developed countries can find cheap labour and cheap resources in other countries and this allows them to become richer.

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