Ethical Issues in Globalization

Globalization and International ethics problems are closely related. The world is changing and globalization is increasingly closing the gap between the barriers of different countries. Globalization increases trade between countries and allows specialization of different products and services but does this benefit outweigh the negative impacts on societies in the long run. From 1950 to 2000 world trade expanded 20 fold far outstripping world output, which grew by 6 and a half times (WTO). UN figures show that FDI increased from 25 Billion in 1975 to 1.3 trillion in 2000. The advancements in technology, transportation, communication, information processing and the Internet have allowed for the growth of and prosperity of Globalization. Although these advancements work predominately for the greater good, ethical implications arise globally as the world is now shifting closer and closer to a global economy. Sweatshops are increasing as companies are moving there production off shore to countries with cheaper labor, child labor is on the rise with 250 million children (ILO) between the ages of 5-14 working and environmental issues are being faced in areas where over farming and deforestation are occurring. If these trends continue, the prophesies of Levitt, about globalization, in 1960's, will become reality in the 2020's. The current state of labor in some third world countries is appalling and to manage this trend fairly, we need to create universal ethical norms, rules and regulations.

In International business globalization has several facets, including the globalization of markets and the globalization of production (Hill, 2004, 7-8). The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global market. On the other hand, the globalization of production refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in cost and quality factors of production (such as labor, energy, raw materials, land, and capital). Several issues can occur when this transition occurs and business activity increases, institutions need to help police, regulate and manage these global markets. During the last 55 years a number of important global institutions have been set up to combat ethical issues and put down rules and guidelines in order to protect the poorer nations of the world. These institutions have had a major impact on the way in which globalization has been shaped and the way it will continue in the future. They include "General Agreement on Tariffs and Trade"(GATT) and its successor, the "World Trade Organization" (WTO); the "International Monetary Fund" (IMF) and its twin sister, the "World Bank "; and the "United Nations" (UN). Although these organizations exist ethical issues are still occurring as Globalization is ever increasing. There is a long list of issues