Nick Aronson

I Dont Always Have Cash in My Pockets, But When I

Do, Its Because of Globalization
Profit maximization, no barriers to entry or exit, equal access, perfect market information, no
participation with market power to set prices, non-intervention by governments, and no
externalities are all conditions which provide for a perfect economy. Do we as individuals live in
world with a perfect economy? No, we do not. We live in a world with an economy which is
clearly affected by globalization. Globalization is the interconnection and growth of community
on a global scale.
The real question here is; are individuals financially benefitting from globalization rather than
being hurt by it? Vijay V. Vaitheeswaran, a well-known economist, a correspondent for The
Economist, and a member of the Council of the Foreign Relations, answers Americans have
benefited these past decades from expanding markets for our products as well as from lower
input prices for our firms and more affordable goods for all of us (qtd. in Schawbel 1).
Globalization has created monstrous financial and technological benefits for people involved in
the global economies and stock markets.
Globalization has allowed for expanding markets, affordable goods, and it has provided
technological, social, and economic advances as well. Globalization and continuing rapid
technological advances offer unprecedented opportunities for social and economic development
(N.a. 1).
Some would argue that the global economies and stock markets are not benefitting from
globalization. Here is an example. Corporate businesses have negative effects on people just as
globalization has negative effects on the global economy and stock markets. It may pay its
workers low wages, or provide unhealthy working conditions, but these negative effects provide
for great positive effects such as low item prices for consumers. Globalization is the same way.
Although globalization has negative effects such as instability and insecurity, Nidal Rashid Sabri
states that globalization brings positive effects such as reduced trading cost, increased volume
of activity in markets, and increased transparency of businesses (1).
Globalization has also created opportunities for the US economy to reach out to foreign
countries. Some may see this as a problem because of outsourcing, but open trade creates
opportunities in the U.S by helping foreign economies become stronger. As incomes grow in
other countries, so does their demand for goods and services, many of which those countries will
not be able to produce (Perry 1), and just as U.S. firms use the services of foreigners, foreign
firms make even greater use of the services of U.S. residents (Perry 1). The growth of foreign
economies is beneficial to individuals within the US because the growth opens opportunities for
jobs and the sale of goods outside the US.
As I said, globalization has brought both positive and negative effects upon the global economy
and stock markets. Vijay V. Vaitheeswaran states The future belongs to firms that can best
harness the global trend toward open, networked and user driven approaches to innovation (qtd.
in Schawbel 1). People must keep up with the ever changing, fast paced, and innovation driven
economies to avoid the negative effects of globalization. Vaitheeswaran also states It is also a
disruptive force, upending jobs and making factories obsolete faster than we have been able to
adjust (qtd. in Schawbel 1). If people do not keep up with the economy they will fall behind.
Although this is easier said than done, staying ahead of the game is a possible way to avoid the
negative effects globalization has on the global markets.
Imagine a world without internet, iPhones, and online gaming systems, Skype, Facebook,
Instagram, interconnections and many other technological advances. To some these advances
may be irrelevant, but for many these advances assist individuals and businesses in everyday life.
Millions of businesses worldwide use the internet to advertise and sell items; countless
individuals and businesses connect with each-other through social media such as Skype and
Facebook daily; and finally individuals and businesses stay connected through the use of cell
phones constantly. A world without this technology is the result of a world without globalization.
We would not have online stock markets, nor would we have the databases we have available to
us today; for investments and other financial needs. Without globalization in our economies we
would not be where we are today technologically nor financially.
In sum, globalizations positive effects on the global economy and stock markets outweigh the
negative effects both within the US and within foreign countries such as our technological
advances, which have made us more efficient, outweigh instability. Secondly, there is a way to
avoid the negative effects globalization has on individuals within the global markets. Finally
without globalization our global economy would not be as advanced as it is today. Now ask
yourself, would you rather listen to people who say the markets are too risky, or would your
rather have a wallet full of cash?
Word Count: 793
Works Cited
Globalization Trade and Investment. Ohchr.org. N.p., N.d. Web. 3 Feb. 2014
Perry, Robert T. Globalization: Threat or Opportunity for the U.S. Economy? frbsf.org N.p.,
May 2004. 3 Feb. 2014.
Sabri, Nidal Rashid, Globalization and Stock Market Stability. Ssrn.com. N.p., 23 Oct. 2007.
PDF. 31 Jan. 2014.
Schawbel, Dan. How Globalization and Social Media Has Impacted the US Economy. Forbes
16 August 2012: n. pag. Web. 3 Feb. 2014