Final answer:
Globalization affects capital by fostering its mobility across borders, benefiting mobile investors but creating challenges for governments in maintaining favorable policies. For workers, it brings competition from low-wage international labor markets, which can result in job outsourcing and economic inequality. Despite these challenges, globalization can lead to overall economic growth and improved standards of living.
Step-by-step explanation:
Globalization refers to the increasing integration of economies, cultures, and governments across the world. For capital in business and nations, globalization signifies greater capital mobility, allowing capital to move more easily across international borders. This mobility tends to benefit investors with mobile assets by presenting diverse investment opportunities and the ability to shift capital to markets with higher returns. However, this can put pressure on governments to maintain favorable exchange rates and financial policies for these investors, sometimes at the expense of domestic priorities.
For workers in nations, globalization has resulted in an international division of labor, wherein workers in wealthier, core nations often compete with those in lower-wage, peripheral nations. This competition can lead to job outsourcing, where companies relocate factories to countries with cheaper labor and less stringent regulations, ultimately impacting the power of local communities and nation-states. This shift can result in the loss of well-paying, working-class jobs, contributing to increased economic inequality within countries such as the United States.
Overall, globalization has the potential to provide economic growth and improvements in the standard of living, but it also presents challenges related to labor, income inequality, and the balance of power between multinational corporations and nation-states.