Benefits and Problems Associated with Globalization

Globalization
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Institution
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Do you agree that globalization and a world without borders have both benefits and problems? Explain and give at least two examples, one of benefits and one of problems. 
Theories attempt to explain reality and are tested against reality. To what extent are the theoretical perspectives on globalization validated by the observed benefits and problems? 
There are both benefits and problems associated with globalization as some actors benefit while other countries are worse off. The major benefit of globalization is that there is free trade as there are fewer barriers to trade. Exporters and exporting countries benefit if they have an advantage over other countries. For instance, East Asia has a low cost of production because of low labor wages and labor abundance, and American companies shift their manufacturing base to the region. The case of Apple outsourcing manufacturing to China highlights that the company is attracted by the low cost of production and this is reflected in the final price of iPods (Films Media Group, 2009). However, this has hurt American manufacturers unable to compete with the lower priced goods, and outsourcing of jobs to other ...