Pros & Cons of Globalization

Advantages of Globalization The pros of globalization are many and they are as follows: • There is a worldwide market for the companies and for the customers there is a better access to products from different countries. • There is a steady cash flow into the developing countries, which gradually decreases the dollar difference. • Due to the presence of a worldwide market, there is an increase in the production sector and there are lots of options for investments for different companies. • Gradually there a world power is being created instead of compartmentalization of power sectors. Politics is merging and decisions that are being taken which are actually beneficial to people all over the world. • The influx of information between two countries increases, especially those nations who do not have anything in common between them. • Cultural intermingling increases and every nation tries to know more about the other nations cultural preferences. In this process, we are actually coming across things that we like and in the course of time adopt it. • Since we share financial interests, corporate and governments are trying to sort out ecological problems for each other. • Socially we have become more open and tolerant towards each other and these who live in the other parts of the world appear more approachable than before. • There is a lot of technological development that countries have undergone over the years. Thus, helping in sharing of information and technology. This helps most of the developing nations progress at the same speed as the developed nations. • Globalization helps in increase of demand of products. This in turn increases rate of production. Manufacturers thus, find this profitable and helps in availability of more jobs. • Globalization makes the economy of one country dependent on the economy of the other country. Any change in economy one country will affect the other. Thus, governments become more concerned about one another to curb the economical imbalance between them. • Now there is a worldwide market for companies and consumers to access products from different countries. • There is a world power that is being created gradually, instead of compartmentalized power sectors. Politics are merging and decisions that are being made are actually beneficial for people all over the world. • There is more influx of information between two countries. • There is cultural intermingling. Each country is learning more about other cultures. • Since we share financial interests, corporations and governments are trying to sort out ecological problems for each other. Disadvantages of Globalization There are cons of globalization are as follows: • Many people from developed nations are losing jobs and that is posing a problem for them since the companies are outsourcing work to developing countries since the cost of labor is low and profits the company considerably. • There is immense pressure on the employed people of developed countries who are always under the threat of their jobs being outsourced. • Corporates are building up units in other countries that equally well equipped, thus transferring the quality to other countries. • There are some experts who think that globalization along with the positive aspects is also leading to the incursion of negatives like communicable diseases and social degeneration. • There is also a threat of corporates ruling the world because there is a lot of power and money invested by them due to globalization. • For nations that are at the receiver's end are also giving up the reins in the ends of a foreign company which might again lead to a sophisticated form of colonization. • Globalization may lead to loss of cultural identity as Western ideas are always imposed upon the Eastern thoughts. • The general complaint about globalization is that it has made the rich richer while making the non-rich poorer. It is wonderful for managers and investors, but hell on workers and nature.”1 • Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages and poor living and working conditions), as well as a lack of concern for the environment, mismanagement of natural resources, and ecological damage. • Multinational corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power due to globalization. • Opponents say globalization makes it easier for rich companies to act with less accountability. They also claim that countries’ individual cultures are becoming overpowered by Americanization. • Some experts think that globalization is also leading to the incursion of communicable diseases. Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners of the globe. • Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an increase in human trafficking. • Millions of others fear losing their jobs, especially at those companies operating under competitive pressure. • Globalization is causing Europeans to lose their jobs as work is being outsourced to the Asian countries. The cost of labor in the Asian countries is low as compared to other countries.