Question

what kinds of groups and organizations do you think profit from globalization and McDonaldization? Be specific, and give your opinion on whether such processes help or hurt the world (or both).

Answer 1

Globalization is a phase of global unification in economic, political, and cultural terms. This made the planet a tiny village; the boundaries between the countries were broken down. Globalization's history dates back to the second half of the twentieth century, with the advancement of transport and communication technologies contributing to a situation where national boundaries were too restrictive for economic activity.

Industrialized or developed nations are particular countries with a high level of economic development and meet certain demographic-based socio-economic criteria, such as the GDP, the Industrialization and Human Development Index (HDI) as established by the International Monetary Fund (IMF), the United Nations (UN) and the World Trade Organization (WTO). In 2012 some developed countries using these definitions are: Austria, UK, Belgium, Denmark, Finland, France, Germany, Japan, Luxembourg, Norway, Sweden, Switzerland and the United States.

Production process heterogeneity is motivated by the goal of cost minimization. Labor is cheap in many parts of Asia, productivity is considerably high, raw materials are easy to obtain and shipping costs have fallen. Products are made at the lowest possible cost and, in certain cases, cost savings will not be passed on to overseas consumers when the products are returned to home country. Entrepreneurs enjoy higher supernormal income while management would reward themselves with fat salaries that leave little to those grass-root employees.

For developed countries, living levels have improved based on real GDP per capita, but not that precise. While it is true that unskilled employees have earned an rise in their wages, their workload is nothing similar to a rise. In short, a 10 per cent rise in salaries contributes to a 50 per cent increase in jobs. We should not be a scientist to see how the factory workers in China are being exploited.

Through globalization, due to the influential role played by WTO, products can easily reach the borders of other countries. With its creation (formerly GATT), global tariffs were reduced on average from 40% to 4%. Low-cost Asian economies have the most to reap this benefit. This is due to the industrial sector's competitive advantage. Unqualified laboratories are plentiful, but the productivity level is comparable. Besides natural resources it is simple to acquire which further reduces the costs of production.

When barley is also imported from outside, the availability of barley would increase in the market, causing its price to decrease. Many customers, who are better classified as low to middle income earners, will rejoice on that. Market surplus would also rise as it raises the difference between what consumers are willing to pay and what consumers currently pay for. In top of that, as there is more variety of products, quality of living should also increase.