Effects of globalization
Globalization refers to greater movement of people goods capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment.Furthermore globalisation describes the process by which regional economies societies and cultures have become integrated through a global network of communication transportation and trade. It is driven by a combination of economic technological socio-cultural and political factors and has increased greatly in the last two decades due to improved technologies and a reduction of barriers. Other influences include trade Foreign Direct Investment migration and the spread of technology. On the positive side Globalization is resounding in many ways.
More effective markets
Productive markets ought to be what each economy takes a stab at. Basically the indication of a proficient market is the place there is a balance between what purchasers will pay for a decent or benefit and what merchants will offer for a decent or administration. In the event that you can enhance the way you create a decent or administration by doing things for example outsourcing certain procedures or purchasing from an abroad provider that offers rebates you would then be able to bear to bring down your offering cost which brings about expanded request and moderateness.
Balanced out security
At the point when your economy depends to a great extent on another nation’s economy it is difficult to envision both of the nations assaulting the other. In an unusual kind of way globalization increased world security. In spite of the fact that this may appear to be somewhat contorted since there is so much viciousness that still goes ahead on the planet the reality remains that globalization has ended numerous contentions that could have turned monstrous if their nation’s monetary wellbeing didn’t rely upon the other.;
More wealth equality throughout the world;
Albeit numerous Americans battle that their way of life has gone down in light of globalization the other side to this is a huge number of individuals around the globe now have occupations have begun their own organizations and can give solace to their families. Living in the U.S. we take things like clean water protect and ample nourishment for allowed. Our way of life is so high contrasted with numerous countries that when we can never again purchase paltry extravagances we assert that we are poor.;
Negative impacts of globalization;
Globalization increases world carbon dioxide emissions.;
In the event that the world consumes its coal all the more rapidly and does not decrease other petroleum product utilize carbon dioxide outflows increment. It indicates how carbon dioxide discharges have expanded in respect to what may have been normal in light of the pattern line for the years.;
Globalization exchanges occupations from created nations to less created nations. Globalization makes everything fair in a way that makes it difficult for created nations to contend. A nation with a lower cost structure (bring down wages and advantages for laborers more reasonable coal in its vitality blend and more indulgent guidelines on contamination) can out-contend an ordinary OECD nation. In the United States the level of US subject with employments began dropping about the time China joined the World Trade Organization in 2001.
An Aspects of globalization;
Globalization is the process of making the universe seem as a village market.This refers to inter grating services across the globe for easy accessibility.I t has promoted the development of interdependence whereby certain entries cannot survive without the existence of a power entry.This has caused many industries to monopolize their services.Case example is the coca cola bottlers .Certain industries cannot survive due to too much interdependence in the globalization process thus end up being closed.
Globalization has led to the promotion of integration between different countries and nations.This has promoted peace and unity among the specific countries thus led to closer international bonds that led to successful transactions in the countries in any particular situation,Thus globalization contributing to the successful peaceful coexistence among nations.
Since time immemorial,globalization has brought by changes in the environment of the universe.These effects are brought by the changes and integration brought by the process of disintegration of services and products from the main plant to sub branches.
Thus globalization has contributed positively to the universal situations.Communication sharing has been enabled as communication is shared universally thus leading to inter mutual understanding.Modern gadgets of communications have been introduced.When your economy depends largely on another country;s economy, it is hard to imagine either one of the countries attacking the other. In a weird sort of way, globalization helped heighten world security.
Although this may seem kind of twisted since there is so much violence that still goes on in the world, the fact remains that globalization has halted many conflicts that could have turned ugly if their country;s financial health didn;t depend on the other
Employment is also accessible to various individuals thanks to globalization.The process of integrating services has made it possible to youths to easily find employment in the globalization process. The universal market has been reduced to a village market where youths easily find employment opportunities to sustain their needs.
Globalization has also led to increased technology advancements.During the process of globalization,technology has really advanced.Modern technological equipment have been introduced in the universal to enable the globalization process to be successful.This has been attributed by new and modern innovations and inventions that take place day and night to make this process of globalization successful.
Considering this globalization has brought by positive changes to the universal than the negative changes.Embracing globalization is the best thing that can actually be done this current times.Technology and expansion of universal markets are necessary.For this to be done globalization has to be embraced and accepted by open hands that are ready to make it a success.
Globalization has contributed to increased competition .Anytime that you have multiple producers competing for a hold of the economy, that;s a good sign for consumers, as the quality of goods and services often goes up as a result.
When businesses started to venture across international borders, what they often did was introduce a new standard into the global marketplace. Consumers then had more options to choose from.
With more competitors to fight over market share, each company has to constantly look to improve their goods or services or create more value for their customers.
This means better products and sometimes lower prices, which is always a good thing for buyers.
More wealth equality throughout the world
Although many Americans contend that their standard of living has gone down because of globalization, the flip side to this is that hundreds of thousands of people around the world now have jobs, have started their own businesses and can provide comfort for their families.
Living in the U.S., we take things like clean water, shelter and plentiful food for granted. Our standard of living is so high compared to many nations that when we can no longer buy frivolous luxuries, we claim that we are poor.
Globalization may have stopped you from buying another flat screen TV, but it also helped countless people in developing countries put food on their table for their families.
Is globalization good or bad
The role of globalization in the world;s economy is clear. Yet, it has a good and bad side. In one corner of the world, globalization is good and in another globalization is harmful. However, this debate cannot be clear without addressing the effects of globalization that prevail; negative or positive.
To begin with, globalization has made the world small. In fact, this trend continues to make the world;s commerce faster and more convenient. Simply put, globalization has created an efficient market where buyers can buy products from sellers in any part of the globe. This means more profit for businesses and increased wages for employees. It is no doubt that the world globalization is common in the business platform than in any other platform. Ideally, globalization is a qualitative shift in the world economic system through a combination of diverse marketplaces to enhance consumption as well as production. Indeed, this is clearly seen through the influence of global enterprises. In spite of this praise, globalization is seen to have negative impacts. Critics of globalization claim that it leads to increased risk of jobs and a strain on the economy of some countries. For example, many people in America presume that through globalization, the US is actively accepting foreigners to work in the country which is then putting their children;s future at risk (Levitt, 1993). In reality, this argument is reasonable as it brings to light the problem of concentration and the uneven nature of globalization. Even more, critics believe that globalization has been made to look like a natural process yet it is the selfish interest of the big corporation to move money without restrictions.
Ideally, globalization has resulted in an increasing rate of economic imbalance. For example, the poor are becoming poorer and the rich are becoming rich because it is easier for the rich to operate globally and hard for the poor to reach the global audience. Furthermore, globalization has also led to increasing environmental degradation. The movement of capital has made it is hard for one particular government to regulate or organize the firms. Besides, there are no clear laws under which the global firms should use. Although this criticism may be biased, it is clear that much can go wrong with the current state of capital movement.
However, one cannot disregard the role of globalization in enhancing the quality of goods and services. Competition has definitely increased because of globalization. The introduction of new businesses in the global marketplace resulted in the creation of new standards for any product or service. This then means that as quality increases, the prices reduce. Moreover, globalization has led to stability and increased security. Simply put, when countries are interacting on a global scale they become allies and thus they are less likely to attack each other.
In short, the positive effect of globalization prevails over the negative impacts. When all this is said and done, globalization seems to be making the world better for the present and future generations. This, however, does not mean that the negative impact of globalization should be ignored.
Levitt, T. (1993). The globalization of markets. Readings in international business: a decision approach, 249.