Hong Kong and The Positive Impact of Economic Globalization

Question: “Economic globalization brings about more good than harm to the quality of life of people in Hong Kong.” Do you agree with this view? Explain your answer.

Economic globalization refers to the integration and interactions between people and nations across the globe through economic activities which reduces national borders and allows interdependence between countries, and quality of life includes the economic and social aspects. To a large extent, I agree with this view.

Firstly, the increasing amount of foreign investment and business operations from international companies creates more job opportunities, thus improving the economic quality of life for people in Hong Kong. According to Source B, international brands such as the General Electric Company “see Hong Kong as a base to reach the markets of Mainland China and other Asian regions”, therefore choosing to establish operations. Through this, jobs are created and people will be able to gain income, in turn increasing their purchasing power. Because they can now afford more different daily commodities, they are more financially secure and their economic quality of life is improved.

Similarly, under globalization, advanced technology and skills are imported in order to enhance productivity and government revenue, therefore improving people’s social quality of life. Hence, there will be more public fund for the improvement of public infrastructure, environmental quality and social well-being, not only enhancing people’s educational opportunities, but improving their living environment as well. This is due to the increase in foreign investment, which will increase local tax revenue and therefore allow more money to be spent by the government on welfare provision and social security assistance, which will then improve people’s well-being and their social quality of life.

Furthermore, globalization facilitates and promotes trade, which can also improve people’s economic quality of life. As economic globalization involves global division of labor in which some workers are outsourced and employed from developing countries, overall production costs will be cheaper, so the final products will also have a lower price. Along with the flow of production resources and good increases, exports will increase as well, consequently letting Hong Kong people enjoy a greater variety of different products and services with relatively affordable prices, not only expanding their number of choices and boosting their living standard, but permitting them to spend less and save more as well. In the long run, they will be benefited as this means they will have more money to spend on more products, hence improving their economic quality of life.

However, I disagree with this view to a small extent because of how global economic downturns can directly affect the Hong Kong economy and people’s livelihood. According to Source A, the trend of Hong Kong economy is like a rollercoaster because of its rises and drops due to the three mentioned global financial crises. Such downturns can lead to unemployment and even bankruptcy, both of which will largely reduce people’s purchasing power as their income is decreased to a very small amount or maybe to even nothing. As they can no longer afford daily necessities, commodities or services, they are unable to support themselves. As a result, their living standard and quality of life will be worsened.

To conclude, while economic globalization can adversely affect Hong Kong people’s quality of life in case of unemployment or bankruptcy from an economic downturn, it improves their socio-economic quality of life through increasing their purchasing power and improving their social well-being, as well as allowing them to save more money in the long run, which will bring long-term benefits.