Proponents' Views of Globalization For proponents of globalization, the process is not only inevitable since it is seen as a direct product of the steady march of technological innovation but overwhelmingly beneficial. Proponents acknowledge that not everyone gains from the increasing integration of the world economy unskilled manufacturing workers in high wage countries, for example, may be displaced. But they argue that the gains from increasing competition and the more efficient allocation of resources are far greater than the losses faced by any particular group. In the proponents' scenario, globalization increases efficiency and competition. Greater efficiency allows for continued economic expansion and the creation of new jobs and other economic opportunities.
Competition yields benefits to consumers in the form of lower prices.
FDI subjects national industries throughout the globe to the most advanced competitors who can establish productive facilities within each national economy. There are also gains from increasing trade, as different products or parts of products are produced wherever this can be done with greatest economic efficiency. Poorer countries gain from both inflows of capital and the spread of the most advanced technology throughout the globe. Most proponents of globalization recognize that unregulated markets do not always produce the best outcomes and that government intervention is sometimes necessary. Opponents' Views of Globalization Critics of globalization, of course, see things very differently.