The Negative Effects Of Globalization

709 Words3 Pages
The development of a global economy has been building since people decided to start trading good and services for the things they needed to survive yet could not produce themselves. As resources were exhausted in their current environment, they were required to either move or develop a trade relationship with the neighboring community. People living in ancient times did not have access to the entire world as we do today. Because of current technologies, people now have access to places, products, languages, and cultures that was never possible before the advent of the internet. This wide reaching phenomenon has developed into what is now known as globalization. Globalization refers to the free movement of capital, technology, services, goods and information on a world-wide scale. Globalization has had both positive and negative effects on the lives of people and governments. The lines between cultures have blurred while some have been lost. Some economies have prospered greatly while others have lost. The growing exposure of the U.S. economy to international competition over the past two decades has brought some momentous changes affecting the American economy, society, and life styles (Clark & Montjoy, 2001). There are many positive effects of developing a global economy. One of these is the growing efficiency of markets. An efficient market is one that operates at equilibrium meaning the supply of goods is equal to the demand of goods. Having a global economy
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