Three dimensions characterize economic globalization. According to book chapter studied in class, the three dimensions of economic globalization are the creation of free markets, privatization, and deregulation. However, these economic conditions foster resource allocation inequalities and grant corporations excessive power. Thus, economic globalization is characterized by winners and losers.
“The six faces of globalization” article is pertinent to understanding Smallman and Brown’s view of the various winners and losers in the economy. Most importantly, the effects experienced in the left face clearly illustrate the resource inequality problems in economies and the excessive power granted to corporations. According to the left face, the various gains acquired from economic globalization only flow upward to wealthy individuals and multinational corporations (Roberts & Lamp, 2021). Therefore, these gains are only enjoyed by the privileged few, resulting in a sharp rise in inequality as the divide between the rich and the poor widens. The left face also emphasizes that corporations are the greatest beneficiaries of economic globalization as they capitalize on a global marketplace to produce cheaply and sell everywhere while paying little taxes (Roberts & Lamp, 2021). Therefore, corporations and elites are the two winners of economic globalization, while the poor and third world countries are the losers.
The impact of globalization on the world has been generally negative. Globalization has typically impacted the least developed countries and heightened the position of their developed counterparts (Marketplace APM, 2018). An analysis of the left face of the cube reveals that globalization is primarily beneficial to first-world nations as they capitalize on free market trade, among other initiatives for their economic development. Globalization has also empowered corporations to venture overseas to tap into cheaper markets, have zero taxation policies, and enjoy free markets for their commodities. Thus, globalization is generally characterized by limited winners and many losers.
References
Roberts, A. & Lamp, N. (2021). Who wins and who loses from globalization? There are at least six answers. Big Think. Retrieved from: https://bigthink.com/the-present/six-faces-globalization/
Marketplace APM (2018). Who are the winners and losers of globalization? YouTube. Retrieved from: https://www.youtube.com/watch?v=bjh-vt6xtfo
