Question

Economic Winners and Losers

With globalization some countries are perceived to be winners and others losers. Likewise there are populations that seem to benefit from globalization and populations that lose as a result of globalization. What do you think? Can you identify at least one winner and one loser specifically in relation to the economic benefits of globalization?

Answer 1

Globalization can be defined as inter connectedness among nations through trade mainly in economic sense . Trade and commerce in global market has made each country dependent on another .

Economies with low labor cost , high infrastructure , exporters with competitive advantages etc are winners of globalization while countries dependent mostly on primary sector , low skilled labor etc do not have these advantages and are losers .

The elite transnational capital class mainly belonging to developed countries , trade in finished goods and services and in luxury products and are true gainers . Even capitalists in developing or under developed countries may not be gainers of globalization . Also countries where the primary focus is agriculture or raw materials or resource extraction usually lose out in this race .

Let us take the example of large economies like USA , China etc , these countries outsource low skilled jobs to countries like Bangladesh since the cost of labor is very low there . Thus the economy of Bangladesh does not grow but these large economies sell the finished products in global market at huge profits .