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From a macroeconomic perspective it is necessary to examine these issues based upon what economic theory predicts and what the empirical evidence demonstrates. While globalization has many connotations, for the purposes of this discussion, it is the process of greater integration of economic activity between nations through free trade and foreign investment by multinational corporations.
First it is important to understand why globalization might be desirable. The fundamental benefits of trade can be demonstrated by applying the economic principle of comparative advantage. The ramifications of globalization in terms of the amount and quality of employment will then be addressed, as well as the contentions that multinationals are exploiting workers and engaging in a "race to the bottom" in labor and environmental standards through there foreign investment decisions...
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