Question

Choose one type of worker (positively or negatively affected by globalization) and describe how they may have been affected.

Answer 1

Consider a low skilled worker in a labor abundant country like China. He is positively affected by globalization. This is bacuase due to globalization, there are many countries that have opend up to trade and there is huge increase in trade between countries. The richer develoepd countries will usually end up importing the labor intensive manufacturing goods from labor abundant countries like China and India. Thus, the worker in China can be employed and earn a livlihood. The higher the world demand and the exports, the better will be the conditions for the worker. In the absence of globalization, countries like China coud not have created enough demand for such goods domestically and a lot of the surplus laborr would be unemployed and go to waste.