What effect does globalization have on consumers? This question has been highly debated by economists. Some believe that consumers will be negatively affected by globalization with greater economic stability and multiple financial crisis while corporations receive record profits. Other experts are of the opinion that globalization will provide customers with more wealth, more goods at lower costs, and will end poverty.
Globalization gives the customers the advantage of getting the best products at the best prices, per many economists and the financial experts. Each country, in a global market, manufactures a product that they are best and most efficient at producing. As a result, consumers have affordable products that were previously out of their price range in some cultures. Thus the standard of living in each country is raised due to the positive effects of globalization. According to this perspective, the new global economy will shift millions of people from absolute poverty to the middle class. Another predicted benefit of globalization is that it will increase global salaries of managers and professionals and provide an increased market for international positions.
Consumer access to disposable income will increase demand for technological advancement and new and improved goods. Further, lower prices give consumers the benefit of being able to save money or spend money on things they want instead of on things that they need. Opponents of globalization state that it makes the rich more wealthy and the poor even poorer, particularly in cultures without ethical protections of its workforce. The opponents believe poor cultures will become too dependent upon other cultures because they cannot keep up.
Leave a Reply