So, how are globalization and the economy related? Well, they are connected by many forces –business, healthcare, and education, to name a few.
It was 1946 and WWII had just ended.
The General Assembly of the United Nations all agreed to develop the United Nations International Children’s Emergency Fund (or UNICEF).
The fund was created to help children living in countries that were negatively affected by the war.
They provided food, medicine, and other necessities for these children who would not have gotten it otherwise.
Currently, UNICEF acts as an organization that helps children in troubled nations.
They collect donations from people around the globe and provide things such as clean water, medicine, food, and education. They also use celebrities to help promote their organization.
Additionally, each year on Halloween (in Canada and the US anyway), they’ll get trick-or-treaters to ask for donations as they go house-to-house asking for candy.
This is an example of how the global economy is working together to help the less fortunate.
However, the link between globalization and the economy doesn’t always better the world.
There are many big corporations that will manufacture their goods in third-world countries. The reason why is because the labour in India or Africa is cheaper than it is in the U.S.
A common term to describe this is sweatshops.
So, you know those Nike’s you are wearing? Yeah, those were made overseas.
And you know your favorite shirt? That was made in Bangladesh (most likely). And your iPhone? That was manufactured in China.
Can you kinda see how globalization and economics are interconnected? It’s very similar to how politics and globalization are connected.
Example of the Relationship Between Globalization and the Economy
If not, just imagine this:
There is an organization (or company) in Canada. They want to manufacture cans, but it’s too expensive to do so there.
So, they go to a third-world country, say Haiti, and open up a factory there.
They hire some Haitians to find and smelt aluminum. They also hire Haitians to make the cans for them.
This company would pay these workers 20-25 cents Canadian per hour.
Once the cans are made, they are then shipped back to Canada. This company will then sell them to customers all over the continent for $5.00 each.
Haiti’s economy improves because they have more employed people (albeit they are not paid much at all).
A new industry is also developed there. Canada’s economy improves because they have a product that is bringing in international money.
Globalization and the economy have many more sub-categories.
It doesn’t just deal with international business.
International resource extraction, the disparity of wealth, transportation, housing, disease and medical care, and education all fall under this class.
So, that’s how globalization and the economy are related.
The example above, it shows that a western nation is exploiting a smaller one.
But at the same time, it is helping the smaller ones out by providing jobs for people.
So my question is, is this behaviour right or wrong?
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