Question

What is the impact of globalization on US manufacturing and service sectors? What are the positive outcomes of globalization? What are the negative impacts in both the US and globally?

Answer 1

The manufacturing industry in the United States came to prominence during the 19th century. Globalization due to the technological advances that occurred in Britain in Western Europe like the advent of the steam engine, the extensive mining and use of coal and the building of railroads. The America had been an agricultural society; before the Industrial Revolution, due to globalization as technology promoted travel and created new, easier ways to make things, manufacturing industries attracted capital (investment) and labor as in case of America's bigger Northern cities. Manufacturing became the dominant industry sector for much of the 20th century.

Service industry jobs have existed for centuries, however, the prominence of the service industry sector is more recent. Beginning in the mid-1980s, service jobs such as medical, educational, food services and hospitality, pulled even with manufacturing in in terms of the total number of jobs by category in the United States due to globalization. By 1999, the service industry employed about twice as many workers as the manufacturing industry.

The positive outcomes include; increase in job market hence better employment; making companies more competitive, lowers prices for consumers. With globalization, there is a worldwide market for companies and consumers to access products from different countries. Shared financial interests have led corporations and governments to try to sort out ecological problems for each other.

Multinational corporations are increasingly influencing political decisions. According to people, there is a threat of corporations ruling the world, as they are gaining power due to globalization. According to the Anti-globalists; globalization is not working for the majority of the world. During, 1960 to 1998, inequality worsened both internationally and within countries. The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources, while the poorest 80 percent consume just 14 percent.