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Globalisation – good or bad?

rodrigo | December 22, 2016

Introduction

Globalisation has become a subject of an ongoing debate in the literature. According to Williamson (1998)
globalisation can be characterized as ‘between-country integration of commodity, labor and capital
markets’. Hence, globalisation is a process of growing exchange of people, economic activities and culture that
leads to the increased production of goods and services as well as to stronger interconnections amongst the
countries and regions (BBC, 2012). Undoubtedly, globalisation has both positive and negative impact on the
global economy. The most important benefits are trade liberalization and growth of Foreign Direct Investment
(FDI) which lead to the faster access to new products, technology and information. On the other hand, there are
rising concerns over the costs of globalisation such as growing income inequality, environmental problems or the
decline of cultural diversity (Nistor, 2007). Positive and negative consequences of globalisation have been
discussed in the article, Globalisation – good or bad? The author emphasizes a consistent argument, that
globalisation has a positive outcome to all nations. However, he fails to demonstrate strong support of this
argument. The only solid evidence is that the developing countries are major beneficiaries of globalization as it
contributes to their economic development, internal stability and poverty reduction.  Further, the author pays
little attention to the negative effects of globalisation. While the article mentions the dominance of multinational
corporations (MNC’s) and labour exploitation, it takes no notice of large environmental and socio-cultural costs of
globalisation.

The author demonstrates strong evidences on MNC’s and their contribution to the global economy. MNC’s are a
powerful force and have the ability to spread wealth, work, technologies that raise living standards. It results in
greater occupational mobility and decrease unemployment globally (McComrick, 2003). Nonetheless, MNC’s are
reasonable global actors that seek profits maximalization. Hence, there is no guarantee that the revenues of
MNC’s will benefit developing states and their citizens. More likely, the incomes will be transferred to the
company’s country of origin. Similarly, these companies might relocate their production between the countries if
they assume that operating costs are lower in another country. It can lead to sudden employment changes within
developing regions (BBC, 2012). Further, MNC’s often contribute to the bankruptcy of local businesses, unable to
compete with these powerful companies. Not only does it influence on employment but also it might affect real
incomes of the households in case MNC’s obtain monopoly position and shape prices in poor countries. MNC’s
can also have negative consequences for the advanced economies. Offshoring[1] results in a lower demand for
low-skilled workers in developed countries and hence, increases unemployment within this group. It indicates
that people have to stay longer in education in order to gain higher qualifications. Hence, the government needs
to increase public spending on education (Nistor, 2007).

It is hard to undermine some positive impact of globalisation on the economies of the developing countries.
Trade liberalization and growing FDI led to faster economic growth as well as to higher level of national incomes
in the developing world. The national governments assisted by international organizations are able to increase
spending on education, health care and other public policies and to tackle poverty. In fact, over the last two
decades the poverty has declined in all regions of the world but Central and Western Asia (Appendix 1). However,
there is no clear evidence on the reduction of income inequality across the globe, postulated by the author (Guy
Palmer 2010). While the decline of income inequality is visible in some developing regions, an increase of income
inequality[2] is observed in Sub-Saharan region and a number of developed countries (The World Bank, 2012).
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Arguable is also author’s emphasis on free market development and criticism of protectionism. Indeed, trade
liberalization is beneficial. However, it must be conducted slowly in developing regions.  Sudden removal of
barriers had dramatic consequences in the past. One of the examples is an economic crisis in Latin American
countries in the early 2000s (Agnoli and Vilan, 2007). Moreover, while the developed countries stress the
importance of trade liberalization, they often maintain high important barriers in order to support domestic
companies. It is strongly visible in the EU’s countries that develop various protective measures in reference to
agricultural products to protect own farmers (Nistor, 2012).

The author postulates that developing countries do not benefit from globalisation as they do not participate in it.
He undermines the fact that developing countries have a little experience in trade liberalization and poor
knowledge of Western values. They need a strong assistance from the international organization. These
organizations aim to contribute to the economic development of poor regions and to promote universal values
such as democracy, good governance or freedom. Nonetheless, the conditionality of international aid is a highly
ineffective tool (Williamson, 2002). Developing countries have been donated significant financial capital each
year and have been assisted at establishing trade links with other regions. At the same time, most of the
developing countries have still been characterized by non-democratic governments and high level of corruption
(Appendix 2), (Transparency International, 2011). Moreover, each year the Amnesty International[3] reports
cases of significant human rights abuses in the developing world (Amnesty International, 2011).

Finally, the author focused on two costs of globalisation such as labour exploitation and the dominance of
multinational organizations. He proves that these issues have rather minor negative effects. However, he
completely overlooks serious environmental and socio-cultural costs of globalisation.  Considering environment,
globalisation contributed to the development of harmful practices. For instance, the companies move their
production to the countries with low environmental standards. It results in increased pollutions and environment
degradation in developing regions, characterized by a low capacity to protect environment. Further, the countries
are allowed to trade their CO2 emissions that do not add to CO2 emissions reduction (Panayotou, 2003, Nistor,
2007). In the socio-cultural terms, globalisation led to the strong dominance of Western culture[4] across the
globe and the decline in cultural diversity. Moreover, globalisation facilitated global migrations. Immigrants often
come from different backgrounds and culture and have problems with adaptation in new countries. It leads to
social exclusion. As the newcomers are not always willingly accepted by citizens of the country it might also result
in increased violence and crime (BBC, 2012, Nistor, 2007).

In conclusion, the author of the article postulates that globalisation has numerous positive effects and is
particularly beneficial for the developing world. However, the evidences demonstrated by the author are highly
questionable. Further, he argues that the costs of globalisation, underlined by Anti-globalists have minor negative
consequences. Nonetheless, this argument is based on two fragile examples of the globalisation costs, while the
serious socio-economic, cultural and environmental effects have not been discussed at all. Hence, the author fails
to present a balanced and objective analysis of globalisation and to demonstrate that the positive effects of
globalisation overcome its negative impact.

What is Globalisation?
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Free 3000 words Globalisation Essay: The concept of globalization is currently a popular but very controversial
issue, and has been one of the most widely debated issues since communism collapsed. ‘Debates currently raging
about globalization include whether it even exists, whether it is more important now than at some earlier date,
whether it is displacing the nation state, and whether it is more important than regionalism or localism’ (Stallings
2000). It means different things to different people, but in most cases remain a loose and ill-defined concept.
Globalization has several definitions, but an undisputable fact which everyone agrees to is the fact that it is a
complex process that has wide and varying impacts on economies, both developed and developing.

Looking critically at the concept, globalization in its broadest sense can be said to be a prismatic, complex, and
multidisciplinary topic. It can be examined from several angles which includes not only economic, the most
common viewpoint, but also social, cultural, ideological and political ones. James Rosenau, a foremost political
scientist, defined globalization as ‘a label that is presently in vogue to account for peoples, activities, norms,
ideas, goods, services, and currencies that are decreasingly confined to a geographic space and its local and
established practices’ (Stallings 2000). For those looking at it from the economic angle, it refers to the
increasingly internationalized character of the emerging global economy. To the lawyers, it has to do with ‘the
threatened changes in legal status of states and their citizens” (Saker et al. 2004). It means different things to
different people, but the bottom-line is that these disciplinary-based viewpoints fail to take into consideration the
multiplicity and complexity of change processes, and therefore fail to appreciate their effects, both directly and
indirectly.

Globalization is widely accepted and referred to as ‘the widening, deepening and speeding up of world-wide
interconnectedness in all aspects of contemporary social life, from the cultural to the criminal, the financial to the
spiritual’ (Lawal, 2006). This widely accepted definition shows the way in which globalization today connects the
cultures and communities in one corner of the world to development occurring in another country.

Globalisation Essay: Globalisation and world wide interdependence

Globalization is truly a complex phenomenon ‘which encompasses a great variety of tendencies and trends in the
economic, social and cultural spheres’ (Bertucci & Alberti 2001). It is dynamic and unpredictable, although not
entirely disordered. Four major factors have been identified to be the driving forces pushing forward worldwide
interdependence. They include entrepreneurship, liberalization of trade and investment, technological
innovation, and global social networks (Bertucci & Alberti 2001). Although it is believed in many quarters that the
two major forces behind globalization are entrepreneurship and technological innovation, these two alone
cannot give an explanation of the process of improved economic integration. Through the elaboration and
adoption of market-oriented policies and regulations at both the international and local levels, the national
governments have played a very vital role in allowing greater interdependence and economic integration of
specific activities (Bertucci & Alberti 2001). The most formidable force is the economic dimension of globalization
as it is the driving force for both the social and political aspects (Ibrahim 2006). Taking Africa for example,
European cultures were able to find their ways into the innermost regions as a result of the colonisation of
various countries which was triggered by the European industrial revolution.

Globalisation Essay: Globalisation and Worldwide Development

Globalisation today has now cleared the way for worldwide development, but the progress is not “even” as some
nations are getting integrated into the global economy faster than others as shown by these countries’ fast
economic growth and reduced poverty levels (Lawal 2006). This then means that globalization does not hold the
same benefits for all members of the global community. It holds more benefit for members of developed nations
while developing nations can be said to be in a rather deprived position. But looking closely at the impacts of
globalisation on developing countries, one would observe both sides of the coin, in that it has both positive and
negative impacts.
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Globalisation has had a lot of positive effects on developing countries. For instance, it played a significant role in
the ability of some countries to achieve independence. Taking the case of Ghana for example, ‘the end of the
Second World War was significant for Ghana’s gaining independence and a turning point in the history of the
Gold Coast’ (Ofosu 2010). And just like Scholte argued that situations occurring in a country thousands of miles
have a way of affecting the economic, social and political situations in one’s country, the rising up of capitalism in
the United States and Socialism/Communism in the Soviet republics were to Ghana’s benefit as they assisted in
the achievement of independence. The same thing for Nigeria, Rwanda, and a whole lot of other developing
countries in which occurring world events positively impacted their abilities to achieve self-rulership.

Another positive impact of globalization on developing countries is an increase in standard of living. One of the
aims of globalization of economies is to reduce poverty, and this aim is being achieved by the increased access to
foreign funding from industrialized nations to developing countries. And the spending of these funds on
improving the education, health, social, and transport infrastructure of the developing nations aids in improving
the standard of living of the people.

Thanks to globalization, developing countries now have access to new markets. And this has been taken full
advantage of by several nations (Bertucci & Alberti 2001). This opening allows the transnational movement of
labour, foreign capital, new technology and management to developing countries from the more industrialized
nations. There is now an increase in the inflow of foreign direct investment to developing countries as more than
a quarter of world foreign direct investment inflows were received between 1988 and 1989 and this has
increased yearly (World development indicators in Bertucci & Alberti 2001). From US $12 billion in 1980, private
capital flows to developing countries increased to US $140 billion by 1997 (Bertucci & Alberti 2001). The only
catch to this is that the bulk of these capital flows so far is strictly limited to a small number of developing
countries, especially the big ones such as Nigeria, Ghana, South Africa, India, Brazil, China, etc. ‘The report on
financing for development prepared for the UN Secretary-General notes that, during the period 1993 to 1998, 20
countries accounted for over 70 per cent of all FDI inflows to all developing countries’ (Bertucci & Alberti 2001).

Globalisation Essay: Effects of globalisation on world trade

Again looking at the effect of globalisation on world trade, and indirectly on trade in developing countries, it is
quite obvious that it enhances economic growth. One of the emphasis of globalization is that member countries
should open their markets to ensure open trading free of limitations. In this regard, liberalisation of trade would
lead to the removal of all restrictions, causing unrestricted forces of demand supply to direct the movement and
substitution of the factors of production, leading to efficient investment by producers (Mubiru 2003). This is
clearly evident in developing countries such as Uganda in which reduced trade restrictions has lead to a large
improvement in the nation’s economy (Lawal 2006).

Again, from the positive impact of globalisation on trade, there is an ‘emerging trend towards trade in production
components’ (Mubiru 2003). Reduction in trade restrictions in a lot of developing countries lead to the partial
relocation of several manufacturers from more industrialized nations to new locations in developing countries.
This may have arisen as a result of tax exemptions or reduced tariffs offered by many developing countries in
order to encourage foreign investors, or increased proximity to cheap labour and occasionally consumers. And
the resultant benefits to the host developing nations are numerous. One is an increase in employment
opportunities for the indigenes as there is creation of more jobs. Also, influx of foreign manufacturers may also
lead to the import of new technology. And with transfer of new technology from developed countries comes
more opportunities for training for local employees. ‘Quite often manufacturing subsidiaries have also been
linked to establishment of distribution networks that expand employment even further’ (Mubiru 2003). This, in
some cases, has lead to impaction of entire regions at a time, causing the benefits to go beyond national
boundaries. Taking this further, the slackening of barriers to various other products and sectors, especially
agricultural products, would lead to immense gains to developing nations.
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Globalisation Essay: Globalisation and global competition

In addition, globalisation leads to global competition, and in the long run, to local competition, ensuring the
improvement of creative abilities and innovative capabilities. Competition between producers of commodities
ensures the quality of the products and services at reduced prices, leading to specialisation and efficiency.

Other positive impacts of globalization on developing countries include better access to foreign culture and
entertainment through television broadcasts, music, clothing, movies, etc; increased cooperation between
governments and the ability to work with better focus towards the achievement of common goals; and diffusion
of knowledge and technical know-how among member countries, especially the less-privileged countries. Much
has been said about improvement in technology but globalisation also improves communication as it leads to
faster means of communicating and travel.

But as much as globalization holds a lot of opportunities, it has a lot of negative effects which several sceptics
have used to criticize the concept and its “so-called benefits”, especially to developing nations. As stated earlier,
globalization is somewhat partial as industrialized nations benefit more from it than developing countries. This
uneven impact is well demonstrated by the rise of India and China ‘which reveals highly uneven distribution of
the benefits of globalization among countries’ (Globalization and its impact 2004).

Globalisation Essay: Globalisation negative impacts on developing countries

One of the major negative impacts of globalization on developing countries is poverty. Globalization has been
said to increase poverty. A former United nations Secretary-General, Kofi Annan, stated that: “. . . at present, only
a relatively small number of countries are enjoying these gains [of globalization]. Many millions of people are
excluded, left behind in squalor . . .” (Annan 2000). Although the exact impact of globalization on poverty is very
difficult to assess, research estimates show that poverty has increased by 82 million, 14 million, and 8 million in
sub-Saharan Africa, Europe and Central Asia, and Latin America and the Caribbean respectively (Globalization and
its impact 2004). Taking a more critical look at this, globalization itself cannot be held responsible for most of the
poverty in developing countries as other factors such as bad governance, poor economic policies, weak reforms,
etc have also implicated. But globalization is a major factor. As claimed by Princová (2010), globalization leads to
wealth redistribution – ‘global richness and local poverty’. It makes the rich countries, in this case, the
industrialized nations, to become richer, and the poor nations, the developing countries, to become poorer
(Zygmunt Bauman in Beck 1997).

Although several African economies initially benefited from globalization as there was a transient economic
growth, over the years, they have become heavily dependent on the wealth of well developed nations (Lawal
2006). ‘African economies are increasingly geared to the export of a very limited range of commodities and the
importation of a wide range of consumer goods’ leading to their being referred to as a largely consuming
economy (Adedeji 1981). To make this worse, agricultural growth is very feeble. And since the 1980s, the terms
of trade and the import capacities have declined sharply resulting in the reduction in the per capita income of the
region (Lawal 2006). Compounding the woes of several developing states is the enormous debt build up.
‘According to the report of the survey of Economic and Social conditions in Africa, (1977-78), the total
outstanding external debt of African Countries rose from $9.02 billion in 1970 to $18.88 billion in 1974 and
$30.02 billion in 1976, while the total debt services rose to $0.89 billion in 1970, $2.43 billion in 1974 and $3.03
billion in 1976’ (Lawal 2006). These and several other evidences has led to Africa, which houses a major part of
world developing states, to being referred to as the most heavily indebted region globally.

Globalisation Essay: Globalisation impact on health and disease

Considering globalisation from the health and disease angle, it has impacted seriously on the epidemiology of
infectious diseases, as regards the ability to prevent, control and eradicate these diseases, worldwide and
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especially in developing countries. One of the ways by which this has occurred is the enhancement of
technological capacities worldwide, leading to increased emissions and a resultant global warming. This in turn
leads to enhanced breeding of vectors such as mosquitoes, animal or human behaviours such as bathing in pools
which may have been contaminated with the larvae of schistosomes, etc (Saker et al. 2004). Over the years, large
increases in international trade have encouraged the introduction of western diets to the previously natural diets
of most developing countries. This has led to changes in dietary habits as the so-called “ethnic foods” have been
relegated to the background and more and more junk food are being consumed in the name of western diets
(Saker et al. 2004). And in the long run, western diseases are gradually becoming prevalent in developing nations.

Again, introduction of western lifestyle through globalization to the developing has led gradually loss of core
values leading to increased looseness and promiscuity among the youth and adults alike. This has caused a surge
in the numbers of those living with HIV/AIDs, and the long-term effects on the economy and society at large.
Globalization has increased the vulnerability of the rural farmer in the remotest village to world events. An
example is the case of coffee farmers in Uganda. Prior to the start of liberalisation, the country’s Coffee
Marketing Board (CMB), on the behalf of the government, served as the middle-man between the coffee farmers
and foreign buyers. In doing this, the Coffee Marketing Board made sure that the farmers themselves were
guaranteed standard coffee prices based on assured quotas negotiated by the Coffee Marketing Board on the
world coffee market on the government’s behalf (Mubiru 2003). Although the individual farmer had to pay the
cost of this existing infrastructure, thereby reducing the net income to the farmer’s pocket, he/she was still
assured of a standard price. But since globalization came in and the Coffee Marketing Board was abolished, the
farmers have been made vulnerable to changes and shocks in the world market. And for developing countries to
have buoyant agricultural sectors, the farmers have to be sheltered from the full vagaries of the world market, a
task made very much impossible by globalization.

Globalisation Essay: Globalisation and employment structure

Today, the employment structure in developing nations has been changed, a result of globalization and capitalism
(Bacchus & Foerster 2005). Before the advent of globalization in developing countries, the main source of
occupation for the active members of the population, both men and women, was agriculture. But since the influx
of foreign corporations occurred, there has been a sectoral shift in the labour force as more hands are being
drafted towards assembly production and fewer hands left in the fields. Empirical evidence shows that there has
been a significant decline in male agricultural work ‘from 62% to 14% . . . [and] a similar decline in agriculture [for
women]’ (Schultz 1990 in Bacchus & Foerster 2005). Another effect of globalization in this regard is a relative
increase in unemployment. Several research studies have examined the hypothesis that globalization does not
only affect the income level of the labour force, but in addition exposes the workers to increased economic
vulnerability and uncertainty via less secure employment and increasingly volatile income (Goldberg & Pavcnik
2007). All these, coupled with shocks in the global economy and the act of outsourcing have led to the laying off
of thousands of workers who previously worked in the big multinational companies resulting in mass
unemployment.
Globalization has succeeded in widening the inequalities in skill premium, wage, income and consumption in
developing countries (Goldberg & Pavcnik 2007). ‘Globalization affects individuals through three main channels:
changes in their labour income; changes in relative prices and hence consumption; and changes in household
production decisions’ (Goldberg & Pavcnik 2007). Prior to the onset of globalization, there existed a little wage
difference between skilled and unskilled workers in most developing nations. But since globalization came in,
there is a widely accepted fact that increases in the demand of skilled labour drove the drastic increase in skill
premium. Although the exact cause of increase in the need for skilled labour is still the subject of debate, but
evidence from Attanasio and Szekely (2000); Sanchez-Paramo and Schady (2003) (in Goldberg & Pavcnik 2007)
and others support the increase in demand of educated workers in developing countries. Similarly, different
theories have been proposed for the changes in relative prices and consumption as caused by globalization. But
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the most widely accepted conclusion is that globalization has contributed largely to inequalities in developing
nations.

Better opportunities in more developed countries, coupled with the possibility of easy travel, have lead to a lot of
educated people being lured away from developing countries. It has been said that more than US $4.1 billion is
being spent annually in the African continent to employ 150,000 expatriates to replace the intellectual vacuum
being created by the ongoing brain drain (Globalization and its impact 2004).

Globalisation Essay: Globalisation and cultural boundaries

In addition, globalization has resulted in the loss of cultural boundaries. In this wise, it has caused the extinction
of several languages in many developing nations. The way languages are going extinct is very rapid, and this has
been predicted to continue unless something can be done to stop the complex process of globalization (Cronin
2003). The enhanced interaction of western cultures with local cultures in the developing world has led to
melting of previously existing cultural barriers so that the individuality of the local cultures begin to fade. The
increase in international travel has also contributed to this as the World Health Organization estimates that
approximately 500,000 people are in airplanes at any one point in time (The Guardian 28 April 2009, p. 10). Also,
the adoption of multiculturalism coupled with the melting of international barriers and easy spread of
propaganda through the internet has led to youths of developing nations imbibing extremist ideas, causing their
being used by terrorists in suicide attacks, as is occurring in many developing nations such as Somalia, Sudan,
Tunisia, Egypt, etc.

The encouragement of free trade zones in developing countries in a bid to woo foreign investors has resulted in
negative effects. A documentary released in 2003, The Hidden Face of Globalization, revealed how female factory
workers in free trade zones are being physically and verbally abused so as to keep up with the production
demands from the firms (Bacchus & Foerster 2005). In a bid to maximize profit, most of these multinational
companies prefer to refrain from creating healthier and safer working environments for their workers. According
to Fuentes and Ehrenreich 1998 (in Bacchus & Foerster 2005), 12 women died in Taiwan from the inhalation of
toxic fumes at a Philco-Ford assembly plant. And coupled with the inability of the workers to unionize as a result
of the free trade policy, the workers have to suffer in silence.

Other negative impacts of globalization in developing countries include the alteration of the environment and
reduction in environmental sustainability, increase in human trafficking, exploitation of cheap labour by foreign
industrialists.

Conclusion

This paper has been able to show globalization as a complex process with wide reaching impacts on developing
countries. Globalization on its own has a lot of gains and benefits, but due to the influence of some other factors
and especially the nature and structure of most developing nations, it impacts negatively despite its advantages.
These impacts hold serious challenges for developing countries in the face of needed economic growth and
development for these countries. To this end, the leadership of the various nations in the developed world must
understand that their major responsibilities lie in the needs of their immediate societies. It is therefore
imperative that these countries formulate rational policies and reforms that would guide liberalisation of trade
and the complexities of globalization as a whole to conform to their own domestic economic agenda.
Globalization itself should not be hindered. But the extent and pace of its progress should be made to reflect the
nation’s situation and presenting economic dispensation so that in the long run, the developing country itself
would be able to strongly compete in the wider confluence of globalization.

Globalization is a process that affects people’s lives and nations’ economies. It is something that is almost on
everybody’s lips these days. But did you know that globalization started in 1492, according to many historians?
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A working paper created by Kevin H. O’Rourke and Jeffrey G. Williamson for the National Bureau of Economic
Research was published in 2002. They said that many historians around the world believe that significant events
in globalization started when Christopher Columbus sailed in 1492 and found the Americas. It was followed by
the voyage of Vasco de Gama in 1498 that disrupted the spice trade monopoly of Venetian and Arab traders
when he sailed around Africa.

Other historians believe that globalization started long before the first voyage of Christopher Columbus. For
them, it started when people from Africa moved to other locations around the world. Whether they traveled long
or short distances, these people, either migrants or merchants shared their products, customs and ideas to the
people they interacted with in their destinations. The newcomers and the residents of the lands they found
borrowed, adapted and melded their cultures.

According to the paper, the most credible opinion regarding the beginning of globalization is what happened
during the 19th century, a time when international trade made an economic impact on the economy worldwide.

Globalization is not a new idea

Whichever way you look at it, globalization is not a novel idea. It’s been around for millennia. Merchants of old
traveled the globe to find commodities that during those times were rare, like gold, spices and salt that they
could sell for high prices.

The Industrial Revolution of the 19th century brought about developments in transportation and communication,
increasing trade across borders and opening/removing borders in many places.

In recent times, business expansion became the impetus for the unprecedented growth of globalization.

What is globalization?

If you do a search online, you can find several definitions of globalization. Some of them include the following:

Globalization is a process wherein organizations or businesses build influence internationally or start their

operation in various locations around the world.

Globalization can mean the merging of national economies through technology, migration of labor force, flow of
capital, investment and trade.

Globalization can also mean the dissemination of technology, values and practices that have a worldwide impact
on the lives of many people.

Globalization can be the process that is driven by different needs and purposes. It results in the increase in the
flow and exchange of culture, information, people, money, services and goods across geographical borders.

The benefits of globalization

For many people, globalization is a beneficial process. Nobel Prize winner Amartya Sen, an economist, said the
globalization brought economic benefits to many people and provided cultural and scientific enrichment
worldwide. The United Nations predicted that poverty could be eradicated in the 21st century due to
globalization. Globalization has many benefits and some of the more important ones are here.

Globalization comprises the integration of cultures, information technology, investment and international trade.
Several countries created government policies to help open their economies internationally and domestically
with the objective of boosting the development in emerging and poor countries so they can lift their standards of
living.
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Corporations acquire a competitive advantage through globalization. It helps them lower their costs of operation.
They are able to open new markets and earn access to other raw materials. They are able to buy, sell and
manufacture goods around the world.

Governments worldwide incorporate free market economic systems due to foreign trade agreements and their
economic policies. The new system has brought international financial opportunities and industrialization. They
have become more open to international trade by removing many of the barriers that used to make trading with
foreign countries difficult.

Globalization has increased awareness among global consumers of different opportunities for investment,
economic trends and new products. The development of information and communication technologies helps
facilitate awareness of these opportunities. Technology likewise made the transmission and channeling of
financial assets quicker and simpler.

Socially, globalization provides populations around the world better interconnectedness. Culturally, it promotes
the increase in the exchange of values and ideas. It boosts the political activities of nations toward a global level
through coordination with intergovernmental organizations. Globalization brings about the changes in the
creation and implementation of international laws.

Globalization enables developing countries to draw level to industrialized countries via the increase of economic
expansion, diversification and manufacturing. It brings improvements in the countries’ standards of living.

Globalization gives the outsourcing industries a big boost, bringing technology and more jobs to other countries.

It encourages many companies to specialize, increase their capital, improve their research and development
efforts and help them innovate.

It provides more employment opportunities, especially in the export and import sectors.

The household income gains an increase through globalization. It reduces inflation rates and increases the take
home pay of workers because the cost of consumption is lower.

Globalization allows many goods to be more affordable and available to more parts of the world.

It helps improve productivity, cut back gender wage discrimination, give more opportunities to women and
improve working conditions and quality of management, especially in developing countries.

These are the most important benefits of globalization. It is still not a very exhaustive list but it allows you to see
the changes that globalization brings to the global community. While the benefits are many, globalization likewise
has its disadvantages.

The downsides of globalization

It is understood that globalization, like other things, can have advantages and disadvantages. Free market
economics critics like American Joseph Stiglitz and South Korean Chang Ha-Joon, both economists from Columbia
University and the University of Cambridge, respectively, think that globalization causes the continuation of
inequality. In 2007, the International Monetary Fund (IMF) said that foreign capital investment in other countries
and the introduction of new technology might have brought about inequality levels.

Some developed countries like France, for example, do not trust globalization. They believe that globalization
makes employers take jobs away from them and move them to overseas locations where the cost of labor is
cheaper.

Here are more disadvantages:

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Globalization is a threat to national and local economies. Global companies coming into emerging and developing
nations have the tendency to impose their ways, practices and culture onto the target nations. They can take
advantage of the situation to engage in wage wars.

It can lead to the implementation of foreign concepts and ideas. In countries where Islamic culture dominates
and other countries with different practices and beliefs, imposing Western culture and ideas could be
detrimental. In some cases, it can lead to the question of national identity.

Although globalization exposes other languages to more people, it can also lead cause some minority languages
to disappear. Since most global companies speak major languages such as English, German, French or Spanish,
speakers of the minority languages have no choice but to abandon their native tongues and learn the widely
spoken languages used in business.

Automation and technological advancements displaced workers, leaving them unemployed.

As more cities, communities and countries become industrialized due to globalization, it also brought about the
loss of biodiversity, growth of the local population, and climate change as well.

Free trade poses greater risks to small, family-owned and private companies that are competing in the global
market. They have to face stiff competition from companies with huge resources.

The aspects that are positively affected by globalization has also some of the aspects adversely affected by the
process. These effects clearly demonstrate the need for balance and careful policing to make globalization more
effective, especially in developing and emerging economies.

What’s the future for globalization?

Due to the rise in nationalism, there are opposing views on what the future holds for globalization. Some believe
that it will slow down while others think that it is going to accelerate.

Some believe that globalization will continue, but the pace of growth will be slower. This involves revisiting the
positive lessons and failures in the past and prepare for a cycle of ups and downs. There should be better political
systems and international governance to monitor cross-border trading.

In last year’s World Economic Forum, globalization was a hot topic. For the founder of Bridgewater Associates,
Ray Dalio, he sees a point where nationalism and provincialism will come to the surface and overtake
globalization.

President Xi Jin Ping of China sees globalization as having an open future because of the economic benefits that
will allow many people to rise out of poverty. He said that while globalization brought many problems, it is still a
process that requires guidance and nurturing and nations should cushion globalization’s negative impact and
share the benefits it brings to many nations.

Despite the problems globalization has brought to several countries, it still has a bright future. Countries may
review their economic and political policies in light of what they have learned and experienced. There could be a
new stage in the development of policies for international economic and political relations that will mold the
future development of globalization.

Partner with us for effective communication

All things have good sides and bad sides. There’s no denying the fact that globalization has affected cultures,
peoples and industries worldwide. Globalization has made the world smaller, but there is still the matter of
mutual understanding. As many parts of the world become open, the more proper communication is needed. For
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paperwork, you need translation services. For verbal discussions, you need interpreting services. And to serve the
needs of new local markets, you need localization services.