Friday, January 2, 2015

What are the advantages and disadvantages of globalization?

Globalization is the growing interdependence of the world’s economies, cultures and populations brought about by cross-border trade in goods and services, technology and flows of investment, people and information. Globalization has both advantages and disadvantages.
AdvantagesOn the positive side globalization leads to rapid economic growth the erosion of barriers to the free flow of goods, services and capital among countries, provides access to markets, advanced technologies and financial resources, which enable developing economies to grow and prosper. Consumers also benefit from globalization. As a result of globalization, people have access to the best quality of goods and services companies have to strive to provide better quality goods and services to the consumer and the consumer has the liberty of choosing whichever product he thinks is best suited for his/her needs. As the competition in the market has increased due to rapid globalization, producers have to price their products competitively in order to remain in the market. This has become a boon for the consumer as he can get better quality products at cheaper prices.Globalization has also led to an increase in employment opportunities. As globalization increases, more and more companies are setting up businesses in other countries. This in turn increases the employment opportunities in those countries thus helping alleviate unemployment.With the increase in globalization, it has become easier for people to move across borders to different parts of the world to acquire better education. Technological advancements have also made it possible to study in the best universities world online from home.
DisadvantagesGlobalization can lead to environmental degradation. Developed countries can take advantage of underdeveloped countries’ weak regulatory laws in terms of environmental protection.Many multinationals have been accused of social injustice by exploiting labor in underdeveloped countries in order to cut costs.Small scale industries which are indigenous to a particular place face extinction as they do not have the resources or the power that the multinational companies have. As a result, these small industries are unable to compete with bigger companies and go out of business.


Globalization is the trend of global cultures getting closer and melding more as technology and travel allow people to experience diverse cultures more easily. There are obvious benefits to this, but there are some additional drawbacks.
On the positive side, globalization helps with enrichment and cultural development. People are able to see and experience different cultures, and this enriches their lives and helps them to learn and grow. This benefits society at large, as diverse experiences and perspectives offer unique ideas, promote solving global problems, and help to develop a stronger global culture and an inclusive environment.
Globalization is also beneficial for businesses because they are able to sell and work in a larger market than previously. They can also draw their workforce from a larger base than if they were limited to one geographic area. However, the ability to draw their workforce from economically disadvantaged populations often leads to exploitation of workers (e.g., underpaying them, providing dangerous working conditions, promoting child labor, etc.).
As a negative, it does expose people to the downsides of culture that can be detrimental. Globalization can lead to racism, terror organizations, and other threats. Additionally, one minor negative is simple dissatisfaction. People will get frustrated with their own culture or country because they have only seen the positive aspects of another culture through technology or tourism. While there may be benefits they’d appreciate more in the other culture, they may be blind to its negative aspects and are therefore seeing an ideal society in their mind that makes them frustrated with their own culture.

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