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1. Question 1

Neoliberalism believes in an economic framework where profits maximization and costs minimization is the norm. Society exists by reducing social security while promoting greater individualism. In an increasingly interconnected world, everything comes under the law of competition (Burlacu et al., 2017). For firms and large multinational organizations, the race to produce cheaper products while maximizing profit margins is a competitive affair. Neoliberalism is a classic Darwinism, where only the fittest and the most adaptable survive. This forces firms to seek to minimize all costs while maximizing profit in whatever way possible.

For example, American firms outsource their products to China, such as the iPhone, where labor is cheap, maximizing profits. They keep the prizes of apple products competitive versus Asian competitors such as Samsung and Huawei. The cheap labor in China enables apple to make higher margins hence higher value for shareholders. In this way, globalization has kept firms competitive and innovative to dominate world markets. It is important to note that global supply chains reap the maximum benefits of a globalized economy.

1. Question 2

Globalization may have its success in the latter part of the 20^th century, but it also has its flaws.  Many critics of globalization see it as a new form of imperialism. It is rooted in imperialism that dominated the world in the 18^th and 19^th centuries. Granted, the only firms that can survive in a globalized economy are multinational firms from historically wealthy countries. They have the economic power to harness economies of scale operating worldwide (Helpman, 2018). Poor and economically deficient countries are unable to match up to their ability. It creates a new level of imperialism that dominates resource-rich, developing nations with no choice but to respect the modern masters.

Globalization is contemporary colonization by any other name. The countries in the global south are still struggling as colonial systems never left. The less developed countries’ economic systems are ripe for exploitation by global moneyed multinationals. A case in point is the banana republics in South America because of the United Fruit Company in the USA. The company’s domination in the Banana Markets led to the rise of American backed fascist’s regimes that oversaw the constant supply of bananas to the American market.

1. Question 3

Neoliberalism assumes competition laws in the global economy are fair, and everyone can have a shot at succeeding. It does not consider the underlying issues that come to the fore that only wealthy nations can deploy globalization effectively (Rodrik, 2018). Developing countries that do not have significant capital are pushovers for their resources. In addition to existing in already affluent markets gives the corporations a head start.

They can own and operate resources in some of the poorest nations in the world. They possess an undue economic advantage over their peers in less developed countries and can buy out competitors. They have undue influence over wages and raw material prices, which they mark up and sell at a high cost to established markets. Voltaire says that man is born free, but he is everywhere in chains (Cuervo et al., 2017). It is not possible to reform globalization as long as corporations run the world. The pursuit of profit will forever take precedence. Unless corporations shape out of the globalization issue, there will forever be skepticism.

References

Burlacu, S., Gutu, C., & Matei, F. O. (2018). Globalization–pros and cons. Calitatea, 19(S1), 122-125.

Cuervo Cazurrra, A., Mudambi, R., & Pedersen, T. (2017). Globalization: rising skepticism.

Helpman, E. (2018). Globalization and Inequality. Harvard University Press.

Rodrik, D. (2018). Populism and the Economics of Globalization. Journal of international business policy, 1(1-2), 12-33.