The Effects Of Economic Globalization

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In 1944 at Bretton Woods, New Hampshire, the foundation for a post-war globalization was laid. The “Bretton Woods System negotiated the rules for commercial and financial dealings among major capitalist countries while promoting relatively free trade, stable currency values linked to the U.S. dollar, and high levels of capital investment.” (Strayer, 1025). But with this new foundation being laid, several problems were created. It lead to unfair and disproportionated economic growth, it had also shifted the power in favor of big businesses, and created instability for the world economy and distribution of wealth. Economic globalization had its undeniable positive effects on the world also. Economic globalization produced one of the most remarkable…show more content…
Economic globalization contributed to inequalities at a global level and among developing countries, economic globalization also affected individual nations; both among the rich and poor. For example, in the United States, a division of labor left many unskilled workers in low-wage service sectors. However, economic globalization has managed the most remarkable spurt of economic growth in the United States History. In 1950, the total world output was at a value of 7 trillion, by 2009 it had grown to about 73 trillion and on a capita basis from $2,652 to $10,728 (Strayer 1029). This created an immense impact on human welfare. Life expectancy increased, infant mortality declined, and literacy had increased. A UN Human Development Report in 1997 concluded that “in the past 50 years, poverty has fallen more than the previous 500.”. The United Nations also reported in 2015 that 836 million people were still living in extreme poverty, but that is down from 1.9 billion and is considered to be at least progress (Crash Course Economics #16, 1:24). In the video Globalization and Trade and Poverty: Crash Course Economics #16, it reports that the World Bank also predicts that by 2030 the number of people living in extreme poverty could drop to less than 400 million, assuming that everything will keep improving (Crash Course Economics #16,

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