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ion that is based on comparative advantage has also lead to cheaper and diversified products, a factor that promotes consumers utility and quality of life. Globalized economies have also led to technological advancements due to transfer of technologies across nations. Similarly, globalization, through international trade, has benefited employees through high wages in export industries and therefore improved their living conditions. Another benefit of globalization is the allowed movement of capital across boundaries to facilitate direct foreign investments in regions where production costs are low (Carbaugh 23).
There are however proposed adverse effects of globalization. It is argued that importation of commodities undermines local industries to cause unemployment. Availability and mobility of labor in the international market also leads to lower wage rates (Carbaugh 23).
The identified adverse effects of globalization are unemployment and lower wage rates that can be resolved by increasing employees’ competitiveness. The benefits of globalization such as availability of cheaper and wide range of commodities, increased wage rates, technological developments, and capital mobility however have immense benefits to both individual and national economic levels. Consequently, benefits of globalization outweigh possible disadvantages. Globalization therefore has a net positive impact on
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