One of the most obvious benefits of embracing a global economy is increased economic development rather than isolated underdevelopment. With increased economic development, countries experience access to technology and information, as well as an expanding employment market. Multinational corporations (MNC) have also been seen as a driving force for change. This is due to the fact that MNC’s often hold higher standards for employment than the host country, pushing legislation for non-discriminatory hiring as well as property rights. Global participation in trade translates into better democracy and also advancement in human rights. As the economy modernizes, the middle class will grow. A strong middle class is essential for democracy and progress. In summary, globalization creates economic growth, which in turn creates political and economic stability.
However, globalization is not without its negative consequences. Anti-globalists argue that decreased involvement in the economy by the government means decreased involvement in the well-being of the people. The state may stop providing necessary services like education, health, and water as it works on becoming more attractive for foreign investment. It is also argued that MNC’s are not bringers of change, as they exploitive conglomerates that do not care for the welfare of local people. MNC’s extract more money and resources than they put back into local economies. Developing countries are thereby often held captive by MNC’s, as they try to maintain market principles in order to be more attractive for foreign investment. In further analysis, it seems that countries with liberal trade laws are not even guaranteed increased economic growth, as it is possible for MNC’s to move across international borders. When looking at well-known MNC’s like Walmart, horror stories about unsafe work conditions and sweatshops in Bangladesh and Guatemala arise, reinforcing the idea that MNC’s do not care about human rights standards.
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