The cruelties and obstacles of this swiftly changing planet will
state, I am sympathetic with the intention of these plans. However, in times of
global economic crises, such protectionist measures may not solve the
problem. Instead, they may lead to
deeper recession and result in higher
unemployment around the globe, just
like what happened in the economic
crisis in the 1930s.
Pascal Lamy, director-general of the
World Trade Organization, has pointed
out that the protectionist measures that
country than another. New technologies
can completely wipe out previous industries. How many buggy whip manufacturers can you find in the U.S. today?
Even without globalization, what
powers a nation’s economy can change
and force people to transition to other
types of jobs. According to a study by
McKinsey (Baily & Lawrence, 2005)
that was based on an analysis of detailed
trade and industry data,
Such an understanding will not only
help all citizens actively participate in
and contribute to the global society, but
also reduce negative feelings toward
other countries and enhance harmony
in the global village.
Our children need to understand
that globalization’s negative outcomes
can affect their own lives.
countries took in the 1930s eventually
led to the Great Depression (Melik,
2009). The Smoot-Hawley Tariff Act,
which raised tariffs on imported goods
to protect U.S. workers, sent the global
economy into deeper recession. The
unemployment rate in the United States
jumped from 7. 8 percent in 1929 to
25. 1 percent in 1933.
Although economists around the
world are warning political leaders not
to repeat this mistake, leaders feel
tremendous domestic pressure to
consider actions that protect the interests of their constituents in the short
term, despite the eventual damages
these actions may have in the long term.
One commonly held view, namely
that developing countries and foreigners
are robbing jobs from the developed
nations, is not necessarily accurate.
First, industries change and jobs get
lost. As Robert Thompson (2006), chair
of the International Food and Agricultural Trade Council, explained,
countries’ competitive positions change
all the time. No economy stands still.
New mineral deposits are found, and
others are depleted. Some countries’
populations grow, and others decline.
Research may find new technologies that
provide a greater advantage to one
trade, particularly rising imports of goods
and services, didn’t destroy the vast
majority of the jobs lost in the United
States since 2000. . . . Only about
314,000 jobs ( 11 percent of the manufacturing jobs lost) were lost as a result of
trade. . . . Falling exports, not rising
imports, were responsible. Service sector
offshoring destroyed even fewer jobs.
These figures are tiny relative to the
millions of positions lost and created
every year in the United States by normal
market forces. . . . Manufacturing’s share
of total U.S. employment has been falling
for at least half a century—a trend that is
typical, not only of developed economies,
but also of many developing ones.
Understanding Global Problems
Global warming has already caused the
Arctic ice sheet to shrink, glaciers to
retreat, and sea levels to rise. We have
seen changes in the amount and
patterns of precipitation, resulting in
flooding and drought. Global warming
also causes extreme weather conditions,
affects agricultural yields, leads to the
extinction of species, and increases the
spread of life-threatening diseases. One
study (CNA Corporation, 2007) noted
the sobering political implications as
Projected climate change will seriously
exacerbate already marginal living standards in many Asian, African, and Middle
Eastern nations, causing widespread
political instability and the likelihood of
failed states. . . . The chaos that results
can be an incubator of civil strife, genocide, and the growth of terrorism. (p. 6)
The study suggests that a common
perception in the United States—that
China and India have caused massive
job losses in our manufacturing and
service sectors—is just not the case. In
fact, one study found that trade and
investment with China will likely result
in a 0.7 percent increase in U.S. gross
domestic product (GDP) and a 0.8
percent decrease in prices by 2010 as
well as an increase of 0.7 percent in
output per worker across the U.S.
economy (Britton & Mark, 2006).
It is crucial for citizens of the global
village to develop a good understanding
of economics from a global perspective.
But climate change is not the only
serious problem facing all human
beings. Environmental degradation,
deforestation, desertification, oil depletion, and destruction of wildlife habitats
are all consequences of globalization.
The economic growth resulting from
globalization has significantly increased
consumption of natural resources and
caused irreversible damage to our
When China imports timber from
Indonesia, it exports deforestation.
When Brazilians replace forests in the
Amazon region with coffee fields, they
affect global temperatures. When the
United States sends its manufacturing
industries overseas, it sends pollution
Global problems can only be solved
globally. One country can change its
energy policy, impose greenhouse gas