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Economist and managing director for the International Monetary Fund Horst Köhler defines Globalization as, “a process of increasing international division of labor and the accompanying integration of national economies through trade in goods and services, cross-border corporate investments, and financial flows.” There has been much resistance to the idea of Globalization in recent years as more people become concerned with third world poverty, but the fact is that Globalization makes economies much more efficient, helps to eliminate war, actually pulls people out of poverty rather than hurling them into it, and enriches life culturally.

Looking at the last 50 years provides enough ample evidence to present Globalizations positive economic advantages. Economics and International Politics major Erik Voorhees states that, economies from the very start were only able to grow with the enactment of globalization on a smaller scale. In a small town people had to make their own goods. There were not varieties of products available for the people within each town to buy. At that time, nearly everyone was a farmer. When the farms grew, so that less people had to farm, people began to specialize in making certain products such as metal. This specialization created a better product, since everyone didn’t have to make the metal themselves and the metal maker could spend time learning how to make the best metal. Specialty skills made it necessary to find a larger market because the original investment used to create that specialty product needed to be more economically feasible. For instance, the sword maker (for his original investment) needed a place to make the metal and a supply of tools and materials. So to make this investment worthwhile and profitable, the sword maker found a larger audience by spreading his business to the next town, or next country. That was globalization in its infancy. Globalization creates more products at cheaper prices (because they are mass produced) that become available to more people, providing quality and variety.

Legendary economist Adam Smith explains it perfectly:

As it is the power of exchanging that gives occasion to the division of labour, so the extent of this division must always be limited by the extent of that power, or, in other words, by the extent of the market. When the market is very small, no person can have any encouragement to dedicate himself entirely to one employment, for want of the power to exchange all that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other men's labour as he has occasion for. – The Wealth of Nations. (Chapter 3)

War is tremendously expensive as we have seen in recent years, and Globalization, in fact, helps to eradicate war. Similar economic interests between countries and mutually beneficial relationships, deter countries from going to war with each other. To that extent, isolation between countries makes them feel as if they need to compete, which often leads to war. Globalization also creates the opportunity to share cultures. Where would we be without Chinese take-out, Toyota Hybrids, and European fashion? Through intense competition it increases our productivity, our innovation, and our efficiency. Finally, Globalization brings the poorest people of the world out of poverty. It provides jobs to those who do not have any available to them. Globalization benefits the absolute poorest of the poor.

Now on the flip side Globalization does have one disadvantage. Some people get displaced, some people lose jobs, and some people can no longer compete when their companies find cheaper work outside of their home country. That’s how every market works, not just the employment market, this includes companies. Companies fail everyday because of competition. Employment is a competition and should be treated no differently. The movement of jobs overseas actually provides other opportunities within the United States for different jobs and better jobs that would be more appropriately executed within our own country. The movement of jobs creates a more fertile and less stagnant employment market in our society. Köhler states, "It is necessary to shift employment away from shrinking sectors and towards growth sectors. Innovation has always been and will continue to be the driving force behind our economic strength and ability to grow.”