Joseph Schumpeter's description of capitalism as an economic system that operates through an ongoing process of "creative destruction" provides a useful framework for examining some of the defining features of an increasingly integrated world economy. Indeed, much of the debate surrounding "globalization" centers around whether technological advancements which have reduced cross-country barriers to the commercial, cultural, and political exchange, have thus far produced a net of benefits or losses. Are we better off because of globalization or not? The answer seems clear. While competiting to meet the wants, needs, and desires of consumers, by nature,it produces both winners and losers, its aggregate effects have meant higher average standards of living for millions of people throughout the world.
Critics of globalization make a number of claims concerning its negative effects. …
