Globalization the Impact of Foreign Essay

Open, View, and/or
Download this Document

Total Length: 921 words ( 3 double-spaced pages)

Total Sources: 5

Page 1 of 3

It also meant greater access to foreign products. Once the American consumer got the taste of the foreign products, the demand for these items exponentially increased. Ultimately, foreign imports allowed for economic growth based on consumption. The sustainability of such a system in questionable and even condemned, but fact remains that it was a real effect of globalization.

Another impact of lifting the trade barriers was felt by the American manufacturers. In this instance, much of the foreign production was sold at prices lower than those of the American manufactured items. Being then unable to compete with the significantly lower prices, some U.S. producers had to declare bankrupt. Consequently, the manufacturing sector of the American economy was damaged. What is even more surprising about this is the fact that the U.S. representatives signed international treaties to allow these negative effects to still occur. A most relevant in this instance is NAFTA, or the North American Free Trade Agreement, which saw lifting the barriers between the United States, Mexico and Canada. The agreement was supposed to sustain economic growth, but what it in fact did was to open the boundaries to free labor force in Mexico, repeating once again the situations in China and India.

Stuck Writing Your "Globalization the Impact of Foreign" Essay?

View All Our Example Globalization the Impact of Foreign Essay

Have A Custom Example Essay Written



Another way in which the American economy was affected by the economies of other states has a more fiscal nature. In this order of ideas, numerous economies pegged their currencies to the U.S. dollar. As the threats of an economic crisis became more obvious and as the dollar was loosing value, the countries detached their currencies form the U.S. dollar. The American currency became as such weaker and lost some of its purchase power.

The events had however dual effects and this is mostly felt today, through the economic recession threatening the American economy. With the hardships encountered in the United States, the multinationals begin to cut costs and close their foreign plants. They also try to economize by reducing it costs, renouncing as such the software outsourcing contracts. Ultimately, with reduced spending power, the American demand for foreign products is likely to decrease, negatively affecting the markets in the countries exporting to the United States......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Globalization The Impact Of Foreign" (2008, November 27) Retrieved May 15, 2024, from
https://www.aceyourpaper.com/essays/globalization-impact-foreign-26381

Latest MLA Format (8th edition)

Copy Reference
"Globalization The Impact Of Foreign" 27 November 2008. Web.15 May. 2024. <
https://www.aceyourpaper.com/essays/globalization-impact-foreign-26381>

Latest Chicago Format (16th edition)

Copy Reference
"Globalization The Impact Of Foreign", 27 November 2008, Accessed.15 May. 2024,
https://www.aceyourpaper.com/essays/globalization-impact-foreign-26381
   

Open, View, and/or
Download this Document
order custom essay example