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What to Consider When Writing a Pros and Cons Essay
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Policies that enhance social justice through fair trade are also enacted to regulate trade where international business has taken roots. According to Held , economic globalization also results in capital flight. Capital flight in the world markets has been occurring through the flow of money and capital from one country to another due to bad financial factors, for example, the cost of labor, high taxes, government tax, tariffs, and capital controls. In such cases of economic globalization, the country from which capital flows experiences a quick decline in terms of exchange rate and devaluation. In most cases, capital flows from countries that have fixed exchange rates. Because of capital flight, the affected country suffers a declining value with the increased terms of trade.
The value of assets in the affected country also declines. Both the developed and developing countries are affected by capital flight because of economic globalization. The affected countries also suffer from liquidity crisis, especially in countries that are directly affected by capital flow. In addition, economic activities such as flights and shipping of goods are also negatively affected by capital flight. One positive effect of economic globalization is that it reduces the level of inequality between the wealthy and underprivileged countries. This result has majorly benefitted the developing nations through foreign direct investment. Inequality has prevailed among many nations of the world over the years, owing to variations in economic structures, wars and conflicts, and variations in terms of the ability to generate wealth.
As a result, the opportunities that developing nations get for economic development do not equal to those of the developed nations. It allows a room for improved welfare of the citizenry by bridging the inequality gap between them and their partners. Globalization of economies improves the living standards of the participants. Through globalization, literacy levels in developing countries have improved, thanks to the education that has been extended even to the marginalized regions. Another positive effect of globalization is the development of tax heavens. Tax havens are nations or territories that levy particular types of taxes at a low rate Held, Such territories may also completely avoid levying the tax.
Tax havens have been preferred by companies that want to avoid taxation or cut down heavy taxation in their countries. Companies and individual entities have focused on shifting their operations to such countries. Tax havens result in tax competition among countries as nations compete to have lower tax levels to attract foreign investors. However, tax havens are associated with fraud and terrorism, which disadvantage the poor countries or individuals because of the evident unethical money accumulation strategies. National economies should not just focus on creating and protecting jobs at the home level. The world is moving towards an increased integration and interaction. Therefore, countries that want to gain economic milestones should focus on diversifying their factors of production and trade.
Through ICTs, countries of the world can make more profits through better technology, reduced cost of production, and access to more markets. This claim implies that localized economies may not compete with globalised companies Napoli, Globalization of the national economies implies the opening of markets for DFIs, which benefit both the governments and people. The populations learn new technologies while the government collects more taxes. According to Hoen , there has been an increase in dependency on Asia by America and Europe on their industrial production. Every company aims at reducing the cost of production while maintaining high levels of quality. For this reason, companies in America and Europe prefer setting their production firms in India.
The cost of labor in India is relatively low in relation to the US and Europe, owing to the high population in India. The reduced cost of labor translates to a low cost of production. In addition, revamping of the agricultural sector in Asia has also provided a cheaper source of raw materials for foreign industries Hoen, When these companies acquire agricultural raw materials, they do not have to transport them overseas for production. The high population in Asia also offers a ready market for the finished products from American and European companies.
Outsourcing has both advantages and disadvantages. It involves engaging the services of an agency in accomplishing a certain task, in this case an international company. One of the advantages of outsourcing the services of a foreign company is that such companies have a wide range of exposure and experience of working in different environment Coy et al. With the increased exposure, the agencies are likely to manage more challenges and succeed in different environments. Secondly, foreign agencies are likely to be bound by blind loyalty in terms of guiding the client nation.
Since they are out for business, the agencies openly criticize and renounce bad practices while at the same time recommending what works without fear. With such information, an organization can identify its drawbacks and act on them in time. Thirdly, an agency is likely to be more outfitted in terms of equipment, technology, and professionals relative to an in-house service provider. Hence, it becomes possible for the agency to perform better and deliver better results. On the other hand, outsourcing has its disadvantages.
To begin with, such foreign agencies have divided loyalties. Since agencies work for different clients, they face the problem of balancing of loyalties between one client and the other Hoen, As a result, foreign agencies offer inadequate services to their clients. Secondly, agencies have less information concerning the client compared to an in-house service provider. Since the outsourced service provider is foreign to the client, the outsourced agencies only rely on the provided information. Firms may not expose their internal problems wholly. Therefore, the outsourced agencies work from a point of inadequate information. This case implies that some problems remain unresolved at the end of the process. As a result, companies that pay a small fee may not receive services that equal to what their counterparts get since they pay a larger fee.
This disparity implies that the quality of service that is offered to a client is likely to be compromised if the fee is small. Economies of the world are likely to slump with the increased recession in major economic blocks. Globalization increases the level of economic interdependence among countries. This situation implies that the devaluation of currency and assets in one nation can easily be transferred to others. With the economic recession in developed nations, investors in such nations may opt to invest their capital in tax-haven countries. Investments in such countries are protected from both national and international taxation.
Transfer of higher value currency from one nation to another that has a lower value currency means an unfavorable competition in the market. The purchasing powers of a particular currency or exchange rates vary widely with the increased globalization. In addition, through direct foreign investment, economic positions of poor nations are compromised. Heavy DFIs end up crippling the local industries in a particular nation. Investments from developed nations that have a stronger currency and asset value cannot compete favorably with local companies. In addition, foreign companies that are involved in DFIs have better technology, experience, and human resource. As a result, they compete better in relation to local industries.
In case the government does not enact policies to protect local industries, globalization may end up crippling them. Zhao et al. Increased globalization increases the accessibility to loans by many countries. Since different economies have varied levels of economic growth, they also have varied borrowing powers. This claim implies that the developed nations have more borrowing powers relative to developing nations Zhao et al. Variations in access to loans imply that the purchasing power in such countries varies. Although both nations may benefit in foreign direct investment, one country may be exploited due to its poverty levels. For example, some nations will prefer investing in lowly developed nations to exploit the available cheap labor and low taxation.
As a result, the investors amass wealth, which is forwarded to their mother countries. Globalization is a common phenomenon in the modern world, especially with the increased adoption of ICT across the globe. Through economic globalization, cross-border trade interactions have overpowered trade barriers and tariffs. As discussed above, globalization has various facets. Globalization has both positive and negative effects. Therefore, it is preferable for national economies to go for the globalization of their economies, as opposed to localization. The paper has realized the advantages and disadvantages of outsourcing. Finally, the study has also realized that globalization predisposes nations of the world to the global recession. It should consist of an introduction, three body paragraphs, and a conclusion.
In the body of the essay, you should address the pros and cons. You may choose to list all the pros first and then address the cons, or you may devote each paragraph of the body to a certain aspect of the issue, explaining its pros and cons. The introduction should start with a strong hook — the very first sentence that should motivate your readers to keep reading your essay. The thesis statement must provide your opinion on the subject. However, when writing pros and cons essays, you may also present your thesis statement in the conclusion.
If you include your thesis statement in the introduction, it may provide a general understanding of what the body paragraphs will be about. Just elaborate on the points from your outline and add more details. Every body paragraph should only focus on one point but all the paragraphs should be related to the thesis statement. The conclusion has two main purposes. First, it should summarize the whole essay. Secondly, it should leave your readers with something to think about. As you can see, writing a pros and cons essay is not a difficult task. com for help. Our professional writers know everything about writing assignments of any kind, and they will provide you with outstanding papers on any topic.
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