Answer :
Final answer:
Globalization increases capital mobility and financial integration, benefiting investors and multinational corporations, while putting pressure on nations and potentially disadvantaging workers, particularly in manufacturing or farming, by intensifying global competition and leading to job losses in richer countries.
Explanation:
Impact of Globalization on Capital, Nations, and Workers
Globalization signifies the expansion of cultural, political, and economic connections across the globe. For capital in business, it means an increase in capital mobility, allowing for easier movement of funds across borders. Businesses and investors who are able to navigate this integrated financial landscape often benefit, as they can maximize returns on investments by taking advantage of differing exchange rates and economic climates. However, this also puts pressure on governments to adopt policies favorable to these mobile investors.
Nations experience both positive and negative impacts due to globalization. While it can lead to a proliferation of trade and foreign investments that boost the economy, it may also result in a loss of control over domestic economic policy to international market forces and multinational corporations. Additionally, the trend often favors richer countries with more capital to invest overseas, potentially exploiting cheaper labor markets in developing countries.
For workers, globalization can be a double-edged sword. In wealthier nations, workers might face job losses as companies move operations to places with cheaper labor. This intensifies competition and might lead to lower wages or worse working conditions for workers in poorer countries. At the same time, workers may have to adapt to collaborate with colleagues from different cultural backgrounds, which can be both challenging and enriching.
