Cost-Benefit Analysis of Economic Globalization

Argues that it is unrealistic to expect the net benefit of economic globalization to be represented by a single monetary figure because its consequences are diverse and several of its consequences are uncertain. The benefits of economic globalization are accessed in terms of its possible impact on the level of global production and exchange of commodities. Both static and dynamic analysis are considered and particular attention is given to economies of scale and to technological change. Possible beneficial impacts of economic globalization on product variety are considered. The economic consequences of International mobility of factors of production (such as labour and capital) are assessed. In addition, the impacts of globalization on conditions of employment, income inequality, poverty, economic vulnerability and environmental issues of global concern are taken into account in considering the benefits and costs of globalization. While most economists seem to believe that growing economic globalization has yielded net economic benefit to date, its future ability to continue to do this is far from certain.