Global Issues I - Globalization

50 years ago, the world was made up of many national economies, which were isolated from others through trade barriers, government regulation, and different cultures and business systems. As time has gone on, we have seen a shift towards a more global economic system. This is commonly referred to as globalization. With declining trade barriers and advancing technology, globalization continues to move forward. Many may wonder whether the shift towards an integrated and interdependent global economy a good thing or a bad thing. The following is a brief overview of some of the benefits and costs of globalization.

First, we will look at a few of the positive views of globalization. Globalization allows countries to specialize in products that they make the most efficiently. A decline in trade barriers ultimately drives prices down for consumers, giving them a variety of products and services to choose from. The growing pool of competition encourages innovation from companies who are trying to stay ahead of their competitors. Globalization can also be a way to improve one’s cultural awareness.

There are also negative views of globalization. The first being the ethical concern of outsourcing jobs to countries where the workers get paid an extremely low wage. Some will also argue that reliance on organizations such as the World Trade Organization will lead to a loss of a nation’s sovereignty. Those who protest globalization are also concerned about potential environmental degradation and the Westernization of cultures.

Ireland has become one of the top countries for doing business. According to the World Bank’s “Ease of Doing Business” scale, Ireland ranks 23 out of 190 countries. The Irish are known to be well-educated people, making the workforce attractive to firms looking to engage in Foreign Direct Investment. Ireland is constantly doing research for improving technology, which can also be a benefit for international business. Tourism is a huge part of Ireland’s economy. There are many well-known tourist attractions, bringing in millions of tourists every year. However, companies such as Guinness that were once only in Ireland have expanded to other countries worldwide. Guinness can be purchased in over 120 countries today!


Sources:
http://www.doingbusiness.org/en/data/exploreeconomies/ireland/
https://www.thebalance.com/globalization-and-its-impact-on-economic-growth-1978843