You might have heard the term globalization used before, whether in an economics lecture or in a political debate. As the world grows more connected through the Internet and greater international trade, globalization is becoming more important — and more controversial — than at any other point in history. In this blog post, we look at the benefits, the downsides, and the interesting realities of globalization.
What exactly is globalization? Simply put, globalization is the process of changing to an integrated world from an isolated one. Globalization can be summed up as a long-term change towards greater international cooperation in economics, politics, idea, cultural values, and the exchange of knowledge. Globalization has largely been made possible by advances in technology, particularly the Internet. As the world grows more connected, people in all nations achieve a far greater level of interdependence in activities such as trade, communications, travel, and political policy.
In many ways, globalization has been taking place for centuries. From the Silk Road, which spanned from Europe all the way to East Asia, to the invention of steamships and railroads, humans have engaged in cultural exchange and international trade for centuries. In the 20 th century, this international exchange and trade was made far easier by the invention of airlines and road vehicles. What was once a slow process became a far simpler one. In the late 20 th century, the invention of digital communications tools like the Internet made modern globalization a reality.
Essay on The Pros and Cons of Globalization - Words | Bartleby
While globalization covers a wide range of topics, ranging from cultural values and information to economics and international trade, most modern discussion of the pros and cons of globalization is focused on economics and culture. From an economic perspective, globalization has truly changed the world. The core features of globalization are increased free trade between nations, easier movement of capital between borders, and a massive increase in foreign investment.
This has resulted in growth for both small businesses and multinational companies, which can now access new markets across the world. There are many pros and cons of globalization, ranging from economic benefits to a freer, more equal labor market. Free trade reduces the barriers that once stood between nations trading freely with one another.
Free trade has numerous benefits for economies and consumers. Consumer enjoy a greater choice of goods and services, since foreign companies can easily offer their products for sale.
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They also benefit from lower overall prices for goods, as a greater variety of goods for sale increases competition and drives prices down. Manufacturers in countries with free trade agreements also benefit from free trade in the from of a larger export market. Rather than being able to export to just a few countries, exporters can now sell their goods to wholesalers and consumers in a large variety of counties.
Free trade also allows nations and economies to specialize, producing higher quality goods at better prices. Another key benefit of globalization is the free movement of labor. In a globalized world, workers can more easily move from one country to another to market their skills to employers and contribute to the economy. For example, the United Kingdom has hired nurses from India to fill positions in its public hospitals that were previously empty due to local labor shortages.
Companies can also hire workers in foreign countries to work for them using online tools and telecommunications. Learn more about the theory and decisions behind this in our Business Process Outsourcing course. The benefits of free movement of labor also work in the other direction. If a country has too few jobs and too many workers, people can easily move to markets in which the job market is better. An excellent example of free movement between countries can be seen in the European Union, particularly the Schengen Area. While many features of globalization have been beneficial, others have resulted in problems for certain economies and countries.
Each of the benefits of globalization, from free trade to the free movement of labor, can also be a downside for specific countries and economies.
One of the biggest downsides of globalization is the harm it can cause to economies at an early stage of development. Free trade forces all countries to compete using an even playing field, which critics claim puts smaller, less developed countries behind their more developed counterparts. This has occurred thanks to establishment of Internet and e-mail. The second source can be regarded as giving the status of the world economy as a free. Thanks to taken measures, prices on goods and services has become cheaper.
The third source can be hardily regarded as appearance of transnational companies.
World was captured by transnational companies. All people wore clothes of leading companies Adidas, Nike. Microsoft, Apple, Windows, Android, iOs. This list can be continued forever. Thanks to process of transnationalization, we can use and consume such production and goods from abroad, which our country does not have. It is safe to say, that transnational companies have taken over the reins of government on information and financial markets.
Economics of all countries is acting now as one mechanism. Market economics is playing central role today.
An economist explains the pros and cons of globalization
More and more free enterprises appear in Europe and countries of former Soviet Union. The culture of all nationalities has become united. Because of that, mass media has become more uniform. English has got the status of international language. Influence of national states begins to weaken. Global problems are solved by international organizations such United Nations Organization, World Trade Organization and so on. Such process as globalization, obviously has as advantages and disadvantages.
In this essay about globalization, I will give examples of positive and negative effects of it on humanity and planet. The emergence of international competition is the first plus of globalization. As domestic producers, so as multinational companies can compete with each other. Strong competition leads to appearance of high quality production.
World trade is profitable in modern situation. Appearance of new trade unions promotes process of globalization. Modern technologies are rooted almost everyday in all spheres of human life with aim to increase performance. This is achieved thanks to scientific and technical progress. Countries, that are lagging behind in economic development, can overtake advanced countries. They can catch up economics and strengthen positions in world arena. Humanity has become more tolerant, so there are no prerequisites for wars and conflicts, racism and wars for natural resources.
International tourism is flourishing.
People can visit other countries and get acquainted with the culture of other nations. Mainly, rich countries and individuals receive bulk of benefits. There are no benefits for countries with low growth of economics. National values are lost. We start to forget our own culture, traditions and customs. There is a risk of sole ruler. Too much power will be concentrated in hands of such ruler or maybe whole country.
Some industries from world trade will get profit, growth of qualified workers, while others do not get support from state, become uncompetitive. Because of that owners lose money, people lose job. Service sector becomes more prioritized, while industry loses its positions. People need to look for new job with aim of receiving the money.
Presence or absence of experience in specialty of workers has started to play important role because of competition. Qualified workers get high salaries, while others get almost nothing or does not have salary at all. This leads to unemployment. Unemployment leads to poverty. More about the reasons of poverty, you can find in essay on poverty. However, it can be also as a plus.