disadvantages of globalization essay

30 Globalization Pros and Cons

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Definition: Globalization refers to the increasing global interconnectedness of nations. It it not only economic integration. It also refers to cultural , technological , social , and political integration (Dincer et al., 2018). A good catch-all definition comes from Hodos (2016), who writes: “Globalization is defined as the process of becoming globally connected.”

Globalization Pros and Cons

The advantages of globalization, 1. increased economic growth.

Globalization facilitates technology, knowledge, and goods transfer, which in turn boosts economic growth (Erixon, 2018).

Through globalization, countries can now purchase the newest technologies and import the most productive machinery from other countries.

This means every country now has access to the most productive machineries, making the whole world more productive. Productivity means more output, which means more economic growth.

2. Cultural exchange and diversity

Globalization facilitates cultural exchange and diversity by increasing interactions among people from different parts of the world through trade, travel, and communication.

This exposure leads to the sharing of ideas, traditions, languages, and values across borders, enriching the cultural landscape of participating societies.

Such interactions often lead to the fusion of cuisines, music, art, and fashion, creating new, hybrid forms of cultural expression.

3. Improvement in global communication

Globalization is both caused by and a catalyst for the expansion of global technology and telecommunications. For example, the internet helps facilitate global trade, and demand for a fast and reliable global internet has stimulated its technological development.

The resulting interconnectedness allows for real-time communication across different countries, breaking down geographical and temporal barriers. The result is a more integrated world where cultural and professional exchanges occur more seamlessly.

4. Greater access to foreign investment

Globalization leads to greater access to foreign investment. With broken-down financial barriers, businesses can now source overseas investors for funds. This helps push down the cost of investment and stimulate local business (Erixon, 2018).

It’s also good for investors. They can diversify their portfolios by investing in different countries, and developing countries can benefit from foreign capital to fund growth and development projects.

This influx of foreign investment can lead to economic growth, technological advancements, and increased employment opportunities in the recipient countries.

5. Access to new markets for businesses

200 years ago, everyday small businesspeople could generally only trade with nearby communities. They had to get goods to market via horse and cart and anything perishable had to be consumed fast. There were no refigerators!

Today, with global supply chains, refrigerators, and free trade agreements, even small businesspeople have access to global markets.

Companies can therefore expand their operations and customer base beyond their domestic markets, tapping into demand in different countries (Erixon, 2018).

6. Increased migration opportunities

Globalization has opened up global labor markets. Nowadays, it takes less than 24 hours to move anywhere across the world. No more 3-month boat rides! This has allowed highly-skilled professionals to cross the world and get jobs exactly where there is market demand.

This mobility benefits migrants through better opportunities, the companies by linking them up with the best possible employees, and also contributes to the cultural and economic dynamism of the host countries (Dumont, Rayp & Willemé, 2012).

7. Reduction in prices of goods and services

Globalization leads to a reduction in prices of goods and services by allowing countries to specialize in producing goods where they have a comparative advantage, leading to more efficient production and lower costs (Mir, Hassan & Qadri, 2014).

The removal of trade barriers and the increased competition in global markets drive down prices, making products more affordable for consumers (Erixon, 2018).

Additionally, the global supply chain means consumers have access to a wider variety of goods and services from different parts of the world.

8. Increased competition leading to innovation

Globalization leads to increased competition because you’re no longer just competing with Bob down the road. Businesses are now competing with other businesses from the other side of the world (Erixon, 2018).

While at first this competition sounds bad, it tends to have positive effects. For example, it spurs innovation as companies strive to maintain their competitive edge in a global market.

The exposure to different market needs and technological advancements across borders encourages businesses to innovate and improve their products and services.

This competition not only drives technological advancement but also leads to better quality and diverse options for consumers.

9. Opportunity for developing countries to develop faster

Developing countries need foreign investment and access to foreign markets in order to grow. Globalization provides this access (Mir, Hassan & Qadri, 2014).

This exposure to global markets and capital can accelerate economic growth, create jobs, and promote infrastructure development.

Furthermore, the exchange of knowledge and best practices with developed nations can enhance the skills and capacities of the workforce in developing countries, leading to sustainable development.

10. Spread of democratic values

Some argue that globalization has led to the spread of democratic values. Arjun Appadurai calls this the “ideoscape” of globalization.

The global spread of media and the internet allows for the rapid dissemination of democratic ideals and human rights concepts.

We saw this, for example, during the Arab Spring of 2011, where activist groups multiple countries in the Arab world collaborated via social media to demand democratic reforms.

11. Global talent pool for employment

Globalization leads to a global talent pool for employment as businesses and organizations have access to a wider range of skills and expertise from around the world (Dumont, Rayp & Willemé, 2012).

Enhanced mobility and interconnectedness allow employers to recruit talent from different countries, enabling them to meet specific skill requirements more effectively.

This global workforce diversifies the workplace, fosters innovation, and enhances competitiveness by bringing together diverse perspectives and experiences.

12. Enhanced opportunities for high-skilled workers

Globalization leads to enhanced opportunities for high-skilled workers as it opens up a vast array of international job opportunities in various sectors, including technology, finance, and healthcare (Dumont, Rayp & Willemé, 2012).

These workers can leverage their specialized skills in a broader market, often finding better employment prospects, higher salaries, and advanced career development options globally.

Moreover, the exchange of expertise and knowledge across borders contributes to professional growth and the advancement of specialized fields.

13. Enhanced global cooperation and peace

Globalization could also, in an optimistic scenario, lead to enhanced global cooperation and peace. This is based on the theory that increasing economic interdependence among nations encourages diplomatic relations and collaboration rather than war (Baldwin, 2008).

The shared interests in maintaining stable trade and investment environments promote peaceful interactions and reduce the likelihood of conflicts.

Furthermore, international institutions and agreements foster a platform for dialogue and conflict resolution, contributing to global stability and peace.

14. Widening networking opportunities

Globalization leads to widening networking opportunities as it connects people from different cultures and professional backgrounds through international business, education, and social media platforms.

These connections facilitate the exchange of ideas, collaboration on projects, and the formation of global communities with shared interests and goals.

This extensive networking can lead to new business opportunities, partnerships, and innovations, benefiting individuals and organizations alike (Dumont, Rayp & Willemé, 2012).

15. Access to more goods for consumers

Globalization leads to access to more goods for consumers by breaking down trade barriers and enabling the efficient flow of products across borders (Mir, Hassan & Qadri, 2014).

Amazon Canada doesn’t have the product? No problem, try Amazon UK instead!

This results in a wider variety of goods available in the market, often at lower prices due to increased competition and economies of scale in production.

Consumers benefit from the improved quality, variety, and affordability of products, enhancing their purchasing choices and overall quality of life.

Disadvantages of Globalization

1. widening of economic disparities.

While the above positives sound good, many like Naomi Klein argue that globalization can lead to the widening of economic disparities as it often benefits developed nations and those with competitive advantages, while less developed countries may struggle to keep up.

This can result in increased wealth for certain regions and sectors, while others may experience stagnation or decline in economic growth. The result is a growing gap between the rich and the poor, both within and between countries.

2. Cultural Homogenization (Loss of local cultures)

There is an argument that globalization can lead to the loss of local cultures and identities as global brands and Western media dominate, overshadowing local traditions, languages, and practices.

We call this ‘ cultural homogenization ‘.

The spread of a homogenized global culture can dilute the uniqueness of local cultures, leading to a decrease in cultural diversity. People may adopt global trends at the expense of traditional values and customs, leading to a loss of cultural heritage.

Others dispute this claim, arguing instead that globalization leads to a process called glocalization .

3. Exploitation of labor in developing countries

Globalization can lead to the exploitation of labor in developing countries (Sharma, 2014). Multinational companies may seek to minimize costs by relocating production to regions where labor is cheaper and regulations are less stringent (e.g. opening up factories in Mexico and China instead of midwestern USA).

This can result in poor working conditions, low wages, and a lack of labor rights, exploiting the workforce in these countries. The pursuit of profit by global corporations can overshadow the need for ethical labor practices, leading to exploitation.

4. Environmental degradation

Environmentalists are often concerned that globalization is exacerbating environmental degradation. Increased industrial activity and international transportation contribute to pollution and natural resource depletion (Mir, Hassan & Qadri, 2014).

The global demand for goods encourages mass production, often without adequate environmental safeguards, leading to habitat destruction, loss of biodiversity, and climate change.

The focus on economic growth and consumerism can overshadow the need for sustainable environmental practices, exacerbating global environmental challenges.

5. Increased risk of financial contagion

Globalization leads to an increased risk of financial contagion as economies become more interconnected, meaning that financial crises can quickly spread from one country to another (Mendoza & Quadrini, 2010; Mir, Hassan & Qadri, 2014).

This interdependence is due to global investment and the intertwined nature of banking and financial markets.

A financial problem in one country can lead to investor panic and a loss of confidence, triggering a domino effect that impacts economies worldwide.

6. Over-dependence on global markets

Globalization leads to concerns that countries are over-dependent on foreign markets for essential supplies.

This dependence can make economies vulnerable when supply chains break down. When a major global shock occurs, countries heavily reliant on that market for exports or investment can experience significant economic disruptions (Mendoza & Quadrini, 2010).

For example, most nations in the world are reliant on Taiwan for computer chips. If Taiwan were suddenly invaded by China, the rest of the world won’t be able to produce sufficient computers!

7. Threat to local businesses and industries

In a globalized marketplace, local businesses face intense competition from larger multinational corporations.

These multinationals often have greater resources, technology, and access to larger markets, which can overshadow local enterprises (Burlacu, Gutu & Matei, 2018).

This intense competition can lead to the closure of local businesses, loss of traditional industries, and a decrease in domestic job opportunities.

8. Erosion of national sovereignty

National sovereignty is threatened by a globalized world. Governments may be compelled to alter their policies and regulations to attract global investment and remain competitive in the international market, locking themselves into international trade agreements that require compromise and cooperation (Burlacu, Gutu & Matei, 2018).

This can result in countries losing control over their economic, social, and environmental policies, potentially prioritizing international interests over national priorities.

9. Downward pressure on wages

Globalization can lead to downward pressure on wages as businesses seek to reduce costs by outsourcing jobs to countries where labor is cheaper (Mir, Hassan & Qadri, 2014).

This competition for lower-cost labor markets can result in wage stagnation or decreases in higher-wage countries.

Additionally, the influx of workers willing to accept lower wages can suppress wage growth even in sectors not directly exposed to international competition.

10. Spread of Political Ideologies

While earlier I noted that globalization may have sped up the spread of democracy, the opposite may occur.

While democracy may have been promoted by globalization – especially in the 20th Century – the same could happen with anti-democratic ideologies . For example, recently we have seen the spread of authoritarianism and “illiberal democracy” across the world.

11. Brain drain in developing countries

Globalization leads to brain drain in developing countries as highly educated and skilled professionals migrate to developed countries in search of better job opportunities, salaries, and living conditions (Dumont, Rayp & Willemé, 2012).

This migration of talent results in a significant loss of skilled labor for the originating countries, impacting their development and economic growth.

The departure of these key individuals can also lead to a shortage of expertise necessary for local advancement and innovation.

12. Spread of diseases across borders

Globalization leads to the spread of diseases across borders as increased international travel and trade facilitate the rapid movement of people and goods around the world.

This mobility can enable pathogens to cross geographical boundaries more easily, leading to the faster spread of infectious diseases.

Outbreaks that might have been contained within a region in the past can now quickly escalate into global health emergencies.

13. Vulnerability to global economic fluctuations

A globalized nation may be vulnerable to global economic fluctuations as economies become increasingly interconnected through trade, investment, and financial markets (Mendoza & Quadrini, 2010).

This interconnectedness means that economic issues in one country or region can have ripple effects globally, impacting economies that might not be directly related to the initial problem.

As a result, even local economies can be significantly affected by economic downturns or crises occurring in distant markets.

14. Concentration of corporate power

Some argue that globalization leads to the concentration of corporate power as large multinational corporations expand their reach and influence across multiple countries (Cowling & Tomlinson, 2005).

These corporations can dominate markets, overshadowing smaller local businesses and potentially manipulating markets to their advantage.

This concentration of power can lead to reduced competition, influence over political and economic policies, and an unequal distribution of economic benefits.

15. Potential for global monopolies and oligopolies

Similarly, globalization could lead to the potential for global monopolies and oligopolies as dominant corporations expand their reach across international borders (Burlacu, Gutu & Matei, 2018).

These entities can gain excessive market control, limiting competition and potentially leading to higher prices and fewer choices for consumers.

The global scale of these companies makes it challenging for new entrants to compete, and their influence can extend to shaping market regulations and policies in their favor.

Baldwin, R. (2008). EU institutional reform: Evidence on globalization and international cooperation. American Economic Review, 98(2), 127-132.

Burlacu, S., Gutu, C., & Matei, F. O. (2018). Globalization–pros and cons.  Calitatea ,  19 (S1), 122-125.

Cowling, K., & Tomlinson, P. R. (2005). Globalisation and corporate power .  Contributions to Political Economy ,  24 (1), 33-54.

Dincer, H., Yüksel, S., & Hacioglu, Ü. (Eds.). (2018). Strategic Design and Innovative Thinking in Business Operations: The Role of Business Culture and Risk Management . Springer International Publishing.

Dumont, M., Rayp, G., & Willemé, P. (2012). The bargaining position of low-skilled and high-skilled workers in a globalising world .  Labour Economics ,  19 (3), 312-319.

Erixon, F. (2018). The economic benefits of globalization for business and consumers.  European Centre for International Political Economy .

Hodos, T. (Ed.). (2016). The Routledge Handbook of Archaeology and Globalization. Taylor & Francis.

Mendoza, E. G., & Quadrini, V. (2010). Financial globalization, financial crises and contagion .  Journal of monetary economics ,  57 (1), 24-39.

Mir, U. R., Hassan, S. M., & Qadri, M. M. (2014). Understanding globalization and its future: An analysis.  Pakistan Journal of Social Sciences ,  34 (2), 607-624.

Sharma, N. K. (2013). Globalization and its impact on the third world economy.  Crossing the Border: International Journal of Interdisciplinary Studies ,  1 (1), 21-28.

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19 Advantages and Disadvantages of Globalization

Globalization refers to several different concepts all rolled into one package. It may refer to the ease in which businesses conduct operations in different countries other than their own. Some look at this subject as a way to create a world without national borders. There are concepts of communication, information access, and technology development to consider when looking at this subject matter too.

Even though the geographic size of our planet remains consistent, how we interact with each other is changing by the minute. Despite more than 200 countries independently working for their best interests, we all come together in ways to make the world a better place. If you have access to a computer or mobile device with data or an ISP, then you can communicate with anyone else in the world with the same setup.

We are closer than ever before. That closeness also means that groups of people are further apart than ever before. Neighborhoods form around common interests or political perspectives more than our common humanity. Travel restrictions dictate where some people can go, and others cannot.

As the advantages and disadvantages of globalization show, even though progress occurs, we are also taking steps backward.

List of the Advantages of Globalization

1. Globalization allows us to pool all our resources together. One of the best examples of globalization within our lifetime is the construction of the International Space Station. The cost to construct the ISS was $150 billion. Compared to the Mir station at $4.2 billion, the price tag is astronomical. When the first component for the ISS was launched in 1998, five different programs came together to join in ownership, cost, and operations. The United States, Russia, Canada, Europe, and Japan are all involved in the financing and continued operations of the program.

When nations work together to fund common goals, then more money becomes useful for needs other than national defense. Imagine what we could do if the $1 trillion spent annually on warfare and defense could be used for the global greater good?

2. Globalization would also reduce labor exploitation issues. When borders become less restrictive around the world, people tend to move to locations where their best opportunities exist. Under the current structure of our planet, impoverished nations with a lower standard of living offer wages that the developed world would find abysmal. Someone in Bangladesh making clothes for 10 hours per day earns less in a month than some workers in the U.S. earn before lunch.

By focusing on globalization, we could reduce child labor issues. Human trafficking concerns would be limited because of more border freedom. People could live, work, or go where they please with fewer restrictions, making it easier to chase their dreams.

3. Globalization reduces the prospects of tyranny. As the world moved slowly toward globalization in the 20th century, the nations realized that having a concentrated power with one administration reduced the likelihood of tyranny in pockets around the globe. Although there have still be issues with government oppression, including the chemical attacks on populace centers in Syria, the number of incidents is slowly declining.

When we’re able to move toward a global-centric society instead of a nation-centric one, these issues will continue to decline over time.

4. Globalization improves communication access. The Trump Administration announced new travel restrictions in September 2017 to focus on 8 countries: North Korea, Chad, Libya, Iran, Syria, Somalia, Yemen, and Venezuela. “Making America Safe is my number one priority,” President Trump tweeted when announcing this decision. “We will not admit those into our country we cannot safely vet.”

Under a globalization perspective, people would have their risks associated by a central perspective instead. It would be like the United Nations vetting immigrants instead of the individual country. By reducing border restrictions, we improve communication access because we’re no longer restricting the movements and actions of people on a per-nation basis.

5. Globalization would remove tax havens for wealthy individuals and businesses. Tax havens are defined as either a country or independent area where taxation levies are at low rates. They offer foreign businesses and individuals an opportunity to keep their profits in local institutions with little or no liability. These havens share little, if any, information about these finances with other tax authorities.

Globalization reduces this issue because it eliminates the administrative structures in place which allow the wealthy to hide their funds from being taxed. That would mean these businesses and people would be treated as an average citizen is today. Greater transparency here would lead to better funding of social programs, which could reduce poverty and food insecurity over time.

6. Globalization would help the developing world progress faster. Most of the world today is not developed. Outside of about 40 countries which have gone through their own version of the Industrial Revolution, the rest of the population still struggles as a primarily agricultural society. By reducing border restrictions, creating common payment formats, and opening product access by reducing export barriers, more people could improve their way of life. Higher incomes often lead to lower maternal and infant mortality rates too, which means we’d be saving lives with this effort.

7. Globalization would reduce currency manipulation problems. There are three primary currencies traded in the world today: the Dollar, the Euro, and the Pound Sterling. When a nation offers access to a weaker currency, those with stronger currencies buy and sell more often with them. It offers better value than spending at home. Globalization would reduce the efforts made to build weakness or strength into these currencies to influence local markets. We’d be working toward a society where economic growth occurs on a global scale instead of in only local economies.

8. Globalization encourages free trade. Borders create restrictions to the free flow of goods and services. One example of this issue is a duty and taxes paid on imported goods originating in the U.S. when purchased in Canada. These taxes apply on luxury items and other items of high value. The HST in Canada may be collected at a rate of 13%. Canadians use shipping service receptacles at locations like Point Roberts, WA to get around this tax simply because the laws haven’t globalized like our access to goods.

There are currently over 1,500 different restrictions in place with the global import/export market right now.

9. Globalization could create more employment opportunities. With fewer barriers to the import/export market, the cost of producing goods or offering services would decline without affecting the profit margins of companies. Consumers would benefit from the lower prices, consume more, and create additional job opportunities around the world. By creating an environment where free trade encouragement readily exists, more innovation, creativity, and engagement would occur at every level of society.

List of the Disadvantages of Globalization

1. Globalization may encourage more offshoring instead of less. With fewer restrictions in place at the national level, some businesses may use offshoring to their advantage. Even if they kept jobs local, the threat of sending jobs to a different, cheaper region overseas could be used to justify lower wages at home. The end result of an effort to remove borders would be an increase in wages in the developing world, but a decrease in developed countries. Many households could see their standard of living go down if consumable price decreases don’t occur simultaneously.

2. Globalization benefits the wealthy more than the poor. Value-added taxes above 25% exist in some nations. Tariffs above 70% exist for some products. Unless borders are completely removed, the advantages of globalization are challenging to achieve. The people who have the power to dictate policy would reap the most significant rewards. Those with money to invest would see their bank accounts continue to rise. At the same time, households living paycheck-to-paycheck would struggle to access what they require, suppressing their ability to pursue a better job.

3. Globalization would encourage disease transfer. The outcome of the Columbian Exchange was profound at the time. Over 90% of some population centers died because of their exposure to smallpox, chickenpox, and other diseases that the Europeans were somewhat immune to at the time. The Europeans brought back syphilis and other diseases as well. If global travel restricts eased, then issues with malaria and tropical disease could spread to portions of the world where exposures are minimal. Tuberculosis, certain influenza strains, and other communicable disease could produce outbreaks at epidemic levels.

4. Globalization could reduce social safety net programs. Most nations today offer those in extreme poverty access to safety net programs for basic supplies. Even in the United States, programs like WIC and SNAP offer food and care access to those who cannot afford it on their own for whatever reason. When we reduce or eliminate borders, there would be a likely shift in social programs to benefit those earning less than $2 per day while ignoring the needs of those at home. Households living in poverty in the U.S. or United Kingdom fit into a different definition when compared to global poverty.

5. Globalization would create a new system of politics. We’ve already received a sneak peek of what a global society would be like from a political perspective. The individuals and organizations who spend the most to lobby politicians would receive the best chance of having their needs met first. We’ve seen billions spent in U.S. elections lately to influence legislation and policy to become favorable toward specific outcomes. This issue would translate to a global economy, where only the richest and most influential would influence laws which would impact everyone.

6. Globalization would not prevent resource consumption. The goal of globalization is to equalize patterns of consumption for populations around the world. Even though there would be movement toward doing so, there is no getting around the fact that the wealthiest nations will still consume the most resources. The 20 richest countries in the world today consume almost 90% of the planet’s resources each year. The United States constitutes 5% of the global population right now, but it consumes 24% of the world’s energy as a country.

When you look at the per capita consumption rates of energy globally, one American consumes as much energy as 31 people in India. If you go to a developing nation, it takes 370 Ethiopians to use the same amount of energy that a single U.S. citizen uses to meet their needs.

7. Globalization would make it easier for people to cheat. The statistics of consumption (especially food) show us already that those who are in power take the majority of resources away from the general population. Americans eat almost 200 billion more calories per day as a nation than they require, which means 80 million people are hungry needlessly because of these consumption habits. About 200,000 tons of edible food is disposed of daily in the United States. By the age of 75, the average person in the U.S. creates 52 tons of garbage.

Globalization would likely centralize distribution of necessary resources. With only a few controlling access to the many, the chance to negatively impact populations on a large scale become greater when borders are reduced.

8. Globalization doesn’t fix a lack of skills. The future of employment involves programming, robotics, and artificial intelligence. Workers who adapt to automation with their skillset are the most likely to find employment in the coming generations. Jobs which require repetitive functions will be the first to go away, which are the employment opportunities often found in the developing world. With no meaningful skills to a globalized economy, there could be a higher unemployment rate if border restrictions reduce because only those in the developed world would be trained for the new economy.

Unless new vocational development opportunities implement with the globalization structures, the boundaries between the developed and developing world will likely continue to exist.

9. Globalization changes how humans would identify themselves. Humans are global citizens in some ways already. We all share the same planet, after all, so we are united with that common ground. If we lose borders, however, we also lose a piece of our culture, ethnicity, or family heritage. People identify themselves based on their history, so being Irish in a global world would have less impact than it does today. We already seen how this works when Texas came into the U.S. after being an independent nation. Some Texans label themselves as such first, but many see themselves as an American before being a Texan.

10. Globalization would negatively impact the environment. We’ve already seen what free trade does to the environment. Greenhouse gas emissions rose in 2018 despite efforts to curtail them. Micro-plastics invaded our oceans, creating negative impacts on marine life. The waters of our planet are slowly acidifying, creating economic and health impacts every day. Over 200,000 Americans die each year because of pollution exposure. If caps are taken off of what is not permitted through globalization, then this issue will continue growing worse.

The advantages and disadvantages of globalization show us that a world free to move and communicate offers numerous opportunities to pursue. It also shows us a planet where fewer opportunities may exist for workers and families who are employed in low-skill positions. We have many challenges to face in the coming years as the world continues to become a smaller place. That’s why we must continually look at these issues to ensure everyone has a fair chance to find success.

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Home » Political Science » Political Economy » 10 Advantages And Disadvantages Of Globalization

10 Advantages And Disadvantages Of Globalization

Globalization is the process of increasing interconnectedness and interdependence among people, businesses, and countries around the world. It is a complex and multifaceted phenomenon that has been shaped by advances in technology, transportation, and communication, as well as economic, political, and cultural factors.

Advantages and Disadvantages of Globalization

Globalization has brought about many advantages, including increased economic growth, access to new markets, and the spread of ideas and innovations. However, it has also had its share of challenges and disadvantages, including job displacement, cultural homogenization, and negative environmental impacts.

In this context, it is important to carefully consider the advantages and disadvantages of globalization in order to understand its impact on the world we live in and work to address any negative effects.

10 Advantages of Globalization

Some of the key advantages of globalization include:

• Increased Economic Growth
• Access To New Markets
• Spread Of Ideas And Innovations
• Increased Cultural Exchange
• Greater Efficiency
• Job Creation
• Improved Living Standards
• Increased Competition
• Greater Access To Information
• Political Benefits

1. Increased economic growth

Globalization has led to increased trade and investment, which has contributed to economic growth around the world. As countries have become more interconnected and trade and investment have increased, businesses have been able to access new markets and sell their products and services to a wider audience. This has led to increased productivity and economic growth, particularly in developing countries that have been able to tap into the global economy.

2. Access to New markets

Globalization has opened up new markets for businesses, allowing them to sell their products and services to a wider audience. This has been facilitated by advances in technology, transportation, and communication, which have made it easier for businesses to connect with customers around the world. The access to new markets has helped businesses to expand their operations and increase their profits.

3. Spread of ideas and innovations

Globalization has facilitated the exchange of ideas and knowledge, leading to the spread of innovations and technological advancements. As people from different parts of the world have come into closer contact with one another, they have been able to share ideas and learn from one another. This has led to the development of new technologies and the spread of innovative ideas, which has had a positive impact on the quality of goods and services available to consumers.

4. Increased cultural exchange

Globalization has brought people from different cultures into closer contact, leading to increased cultural exchange and understanding. As people from different parts of the world have interacted with one another, they have been able to learn about and appreciate different cultures and ways of life. This has helped to promote greater tolerance and understanding among people from different backgrounds and has contributed to a more vibrant and diverse global culture.

5. Greater efficiency

Globalization has allowed for the division of labor, with countries specializing in the production of goods and services in which they have a comparative advantage. This has led to increased efficiency and lower prices for consumers. By specializing in the production of certain goods and services, countries have been able to take advantage of their unique strengths and resources, leading to increased productivity and lower costs.

6. Job creation

Globalization has created new job opportunities, particularly in developing countries. As businesses have expanded their operations internationally, they have created new job opportunities in the countries where they operate. This has helped to reduce poverty and improve living standards for many people around the world.

7. Improved living standards

Globalization has contributed to increased prosperity and improved living standards for many people around the world. As economic growth has increased and access to goods and services has improved, people have been able to enjoy a higher standard of living. This has included increased access to education, healthcare, and other important amenities.

8. Increased competition

Globalization has increased competition among businesses, which has helped to drive innovation and improve the quality of goods and services. As businesses compete with one another on a global scale, they have been forced to continuously improve the quality and value of their products and services in order to stay competitive. This has benefited consumers, who have access to a wider range of high-quality goods and services at lower prices.

9. Greater access to information

Globalization has made it easier for people to access information and connect with others around the world. Advances in technology and communication have made it possible for people to access a wide range of information and connect with others, regardless of their location. This has had a number of benefits, including increased access to education, improved communication and collaboration, and the ability to connect with people from different cultures and backgrounds.

10. Political benefits

Globalization has contributed to increased political stability and cooperation, as countries have become more interconnected and interdependent. As countries have become more reliant on one another for trade and investment, there has been an increased incentive to cooperate and work together to address common challenges. This has led to increased political stability and cooperation, as countries have worked together to solve problems and find mutually beneficial solutions. In addition, the increased economic and cultural exchange facilitated by globalization has helped to promote greater understanding and cooperation among countries.

10 Disadvantages of Globalization

Globalization also had its share of challenges and disadvantages. These includes –

• Job Displacement
• Cultural Homogenization
• Negative Environmental Impacts
• Income Inequality
• Loss of Local Control
• Exploitation Of Workers
• Loss of Cultural Diversity
• Decreased Job Security
• Negative Impact On Small Businesses
• Negative Impact On The Environment

1. Job displacement

Globalization has been associated with job displacement, as some workers have lost their jobs to lower-paid workers in other countries. As businesses have sought to take advantage of lower labor costs in other countries, they have moved some of their operations abroad, leading to job losses in their home countries. This has had a particularly negative impact on workers in developed countries, who may not have the same access to education and training as their counterparts in developing countries.

2. Cultural homogenization

Globalization has been linked to cultural homogenization, as some local cultures have been overshadowed by more dominant global cultures. As people from different parts of the world have come into closer contact with one another, there has been a greater exchange of cultural influences. However, some critics argue that this has led to the erosion of local cultures and the rise of a more dominant global culture. This has had a negative impact on cultural diversity and has led to the loss of some traditional ways of life.

3. Negative environmental impacts

The increased trade and transportation that has accompanied globalization has had negative environmental impacts, including air and water pollution and climate change. The increased movement of goods and people around the world has led to increased emissions of greenhouse gases and other pollutants, which have contributed to climate change and other environmental problems.

4. Income inequality

Globalization has contributed to income inequality, as some people and countries have benefited more from the process than others. While some individuals and countries have experienced increased prosperity and improved living standards as a result of globalization, others have been left behind. This has led to growing income inequality, as the gap between the rich and the poor has widened.

5. Loss of local control

Globalization has led to the loss of local control in some areas, as decision-making has shifted to a global scale. As countries have become more interconnected and interdependent, some argue that local communities and governments have lost control over their own affairs. This has led to a sense of powerlessness and frustration for some people, as global forces have come to shape their lives in ways that they may not be able to influence.

6. Exploitation of workers

Some critics argue that globalization has led to the exploitation of workers in developing countries, as companies seek to take advantage of lower labor costs. In some cases, workers in developing countries have been paid very low wages and have worked in poor conditions in order to produce goods for export to developed countries. This has led to concerns about the exploitation of workers and the erosion of labor standards in some countries.

7. Loss of cultural diversity

Globalization has been linked to the loss of cultural diversity, as some local cultures have been overshadowed by more dominant global cultures. As people from different parts of the world have come into closer contact with one another, there has been a greater exchange of cultural influences. However, some argue that this has led to the erosion of local cultures and the rise of a more dominant global culture, which has had a negative impact on cultural diversity.

8. Decreased job security

The increased competition that has accompanied globalization has led to decreased job security for some workers. As businesses have faced increased competition from abroad, they have been forced to become more efficient in order to stay competitive. This has led to cost-cutting measures, including layoffs and job insecurity, which has had a negative impact on some workers.

9. Negative impact on small businesses

Globalization has benefited large corporations, but it has had a negative impact on small businesses in some cases. As small businesses have faced increased competition from larger, more efficient global corporations, some have struggled to survive. This has led to the closure of some small businesses and the loss of jobs in local communities.

10. Negative impact on the environment

In conclusion, globalization has brought about many positive changes and benefits, including increased economic growth, access to new markets, and the spread of ideas and innovations. However, it has also had its share of challenges and negative impacts, including job displacement, cultural homogenization, and negative environmental impacts.

As we move forward, it is important to carefully consider both the advantages and disadvantages of globalization in order to understand its full impact and work to address any negative effects.

This may involve adopting a more responsible and ethical approach to globalization that takes into account the needs and well-being of people and the environment. By doing so, we can ensure that the benefits of globalization are shared more widely and that its negative impacts are minimized.

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IELTS Essay, topic: The advantages and disadvantages of globalization

• IELTS Essays - Band 8
• by Simone Braverman

Even though globalization affects the world’s economies in a very positive way, its negative side should not be forgotten. Discuss.

Globalization is such a commonly used term in the century. It simply means that the world has become integrated economically, socially, politically and culturally through the advances of technology, transportation and communication. It is undeniable that globalization has resulted in both positive and negative effects which must be addressed accordingly.

Secondly, several companies from the more developed countries have already ventured to establish foreign operations or branches to take advantage of the low cost of labor in the poorer countries. This kind of business activity will provide more influx of cash or investment funds into the less developed countries.

However, one cannot deny the negative effects which derived from globalization. One crucial social aspect is the risk and danger of epidemic diseases which can easily be spread as the transportation becomes easier and faster in today’s advanced society. This is evidenced in the recent birds flu disease which has infected most Asian countries over a short period of time.

As large corporations invest or take over many offshore businesses, a modern form of colonization will also evolve which may pose certain power pressure on the local governments of the less developed countries. Unemployment rates in the more developed regions such as Europe may also escalate as corporations choose to outsource to the cheaper work force from Asian countries.

In conclusion. to reiterate that globalization is inevitable and we must urge individuals, companies and governments to use a more balanced approach by taking the appropriate steps to deal with matters relating to the financial or economical gains verses the social, political or ecological concerns of the world.

This essay is too long, 318 words instead of 250-265. Otherwise (except for some minor grammatical errors) it is a very nice work. It covers the task, has the right structure, the paragraphs are coherent and are logically connected by elegantly used linking words, the structure of sentences is fine and so is your vocabulary. Seems worthy of Band 7.5 or 8.

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Home — Essay Samples — Sociology — Globalization — Advantages and Disadvantages of Globalization

Advantages and Disadvantages of Globalization

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Published: Jan 30, 2024

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Advantages of globalization, disadvantages of globalization, references:.

• Stiglitz, J. (2002). Globalization and its Discontents. Penguin Books.
• World Economic Forum. (2019). The Global Competitiveness Report.
• United Nations Development Programme. (2020). Human Development Report.

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globalization

globalization , integration of the world’s economies, politics, and cultures. German-born American economist Theodore Levitt has been credited with having coined the term globalization in a 1983 article titled “The Globalization of Markets.” The phenomenon is widely considered to have begun in the 19th century following the advent of the Industrial Revolution , but some scholars date it more specifically to about 1870, when exports became a much more significant share of some countries’ gross domestic product (GDP). Its continued escalation is largely attributable to the development of new technologies—particularly in the fields of communication and transportation—and to the adoption of liberal trade policies by countries around the world.

Social scientists have identified the central aspects of globalization as interconnection, intensification, time-space distanciation (conditions that allow time and space to be organized in a manner that connects presence and absence), supraterritoriality, time-space compression, action at a distance, and accelerating interdependence. Modern analysts also conceive of globalization as a long-term process of deterritorialization—that is, of social activities (economic, political, and cultural) occurring without regard for geographic location. Thus, globalization can be defined as the stretching of economic, political, and social relationships in space and time. A manufacturer assembling a product for a distant market , a country submitting to international law , and a language adopting a foreign loanword are all examples of globalization.

Of course history is filled with such occurrences: Chinese artisans once wove silk bound for the Roman Empire ( see Silk Road ); kingdoms in western Europe honoured dictates of the Roman Catholic Church ; and English adopted many Norman French words in the centuries after the Battle of Hastings . These interactions and others laid the groundwork for globalization and are now recognized by historians and economists as important predecessors of the modern phenomenon. Analysts have labeled the 15th to 18th century as a period of “proto-globalization,” when European explorers established maritime trade routes across the Atlantic and Pacific oceans and encountered new lands. Integration prior to this time has been characterized as “archaic globalization.”

What distinguishes the process of modern globalization from those forms of global integration that preceded it are its pace and extent. According to some academics, three distinct eras of modern globalization can be identified, each of them marked by points of sudden acceleration in international interaction. Under this scheme, the “first globalization” era refers to the period between approximately 1870 and 1914, during which new transportation and communication technology decreased or eliminated many of the drawbacks to distance. The “second globalization” era is said to have lasted from roughly 1944 to 1971, a period in which an international monetary system based on the value of the U.S. dollar facilitated a new level of trade between capitalist countries. And the “third globalization” era is thought to have begun with the revolutions of 1989–90, which opened the communist Eastern bloc to the flow of capital and coincided with the creation of the World Wide Web . Some scholars argue that a new period of globalization, the “fourth globalization,” is underway, but there is little consensus on when this era began or whether it is truly distinct enough to merit its own designation.

New levels of interconnectedness fostered by globalization are credited for numerous benefits to humanity. The spread of industrial technology and the resulting increase in productivity have contributed to a reduction in the percentage of the world’s population living in poverty. The sharing of medical knowledge has dramatically decreased the incidence of once-feared diseases and even eliminated smallpox. And economic interdependence among countries discourages war between them.

However, the implementation of globalization has been much criticized, leading to the development of the anti-globalization movement. Opponents of globalization—or at least, globalization in its present form ( see neoliberal globalization )—represent a variety of interests on both the political left and right. Labour unions disdain multinational companies’ ability to move their operations to countries with cheaper labour; Indigenous peoples rue the difficulty of maintaining their traditions; and leftists object to the neoliberal character of the new world economy, arguing that the capitalist logic on which they contend globalization is based leads to asymmetrical power relations (both internationally and domestically) and transforms every aspect of life into a commodity. Right-wing critics of globalization believe that it threatens both national economies and national identity. They advocate national control of a country’s economy and rigidly restricted immigration.

Globalization has also produced effects that are more universally worrisome. Expanded transportation networks facilitate not only increased trade but also the spread of diseases. Undesirable trade, such as human trafficking and poaching, has flourished alongside legitimate commerce. Moreover, the pollution generated by the world’s modernization has resulted in global warming and climate change , threatening Earth’s very habitability.

Whether globalization will adapt to these problems remains to be seen, but it is already changing again. For example, globalization began in the 19th century with an explosion in exports, but, even before the COVID-19 pandemic that swept through the world in 2020 resulted in global lockdowns, trade as a share of many countries’ GDP had fallen. It can be argued that the global supply chains today rely more on knowledge than on labour . And services now constitute a larger share of the global economy than goods. A “fourth globalization” might indeed be here—or at least on the way.

Do the Benefits of Globalization Outweigh the Costs?

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The term globalization has become recently popular in the modern world describing a wide range of economic, social and political trends. Globalization can be described as the integration of societies, economies and cultures through a worldwide network developed from communication, trade and transportation.

Although there are many description of the term, it has generally been accepted that globalization is a term that best describes the contemporary world that exists now. Globalization has extensive implications for almost every aspect of human life.

This has sparked numerous debates about the impacts of globalization and whether it has caused more harm than good. Considering the various developments in the recent world, it is evident that globalization offers more advantages than disadvantages economically or otherwise.

Globalization is mainly used to describe the integration of worldwide economies through foreign investments, trade and technological exchange. Globalization has led to the development of a global market whose foundation is the freedom of exchange.

Countries that were once cut off from the world can now access goods and services easily from foreign countries. Companies are also able to reduce their cost of production by locating their companies in countries with cheap labor cost. This has led to cheaper goods that can be accessed by different people from all over the world.

Globalization has also enabled the transfer of skills. Third world countries and developing countries can learn from multinational companies and in the process develop their own economies from the acquired knowledge. Critics of globalization argue that globalization has led to loss of jobs through outsourcing. Critics also argue that globalization has led to the spread of sweatshops and exploitation of workers from third world countries.

While these claims may be true, it should be noted that cases of unemployment are very high in third world countries and through globalization these workers may get a chance to get a livelihood. Companies mainly invest in these countries for cheap labor, and the moral dilemma that arises due to “unfair” wages is unfounded as without these foreign companies, the workers are stuck in poverty without a way out.

Globalization has also led to integration of military power and political alliances. This has led to the development of a common international legal framework that seeks to protect human rights and promote peace throughout the world. Through globalization, crime importation has become possible and cooperation of law agencies all over the world has enabled the improvement of international crime fighting efforts.

Globalization also led to the formation of the international criminal court that has enabled political and human rights criminals to be tried fairly and justly, which would otherwise be impossible in their home countries.

Globalization has also led to military cooperation aimed at fighting impunity, promoting democracy and elimination of terrorism threats. This is one of the major advantages of globalization as countries that were once oppressed and in turmoil can now receive help from the international community. However, critics of globalization argue that it has led to the erosion of national borders and infringement of national sovereignty.

They have argued that national politics and issues that are only of national concern have been infringed upon by the international community with some countries trying to control how another country is governed or how it carries out its activities, a situation that has been dubbed neocolonialism. However, the formation of global administrative laws and other international relations law has ensured that the individual sovereignty of a country is preserved regardless of the situation.

International cooperation has also enabled countries to receive help when in need such as the case of Haiti early this year. Cases of genocide, civil wars and oppression can now be avoided or mitigated mainly due to international cooperation brought about by globalization.

During the Rwanda genocide, the international community chose not to take action and the country was almost destroyed. It was only after the international community intervened that the situation was brought under control. It can thus be seen that politically, globalization has brought more good than harm.

Infusion of cultures has also been one of the major impacts of globalization. Multiculturalism has spread to virtually all corners of the world with people enjoying better access to foreign cultures, beliefs and traditions. Some critics argue that foreign cultures have led to the extinction of local cultures.

However, it can be argued that multiculturalism has enabled better understanding between people from different regions of the world thus promoting peace. Foreign cultures are also usually secondary to local culture and although dilution of cultures may result, people gain a better understanding of the world and are more tolerant towards each other.

Globalization has also resulted in the increase of tourism and international travel. Tourism not only improves the economy of the local population but it also helps the country to educate others about its people and its resources.

Through globalization, people now have better access to education from foreign countries. Although this may lead to brain drain, those who return to their home countries bring new ideas and skills that can be used to solve problems faced by the country and improve the overall economy of the country.

Globalization has also led to the development of the international society where people communicate and solve each other’s problems. Social sites such as FaceBook have enabled people from different regions of the world to befriend each other and communicate in real time.

Globalization is a term that is used to describe the modern world. Almost every aspect of human life is in one way or another affected by globalization. Various debates have been help about the actual and potential impacts of globalization. Although it has several disadvantages, globalization has brought many advantages.

Economically, the development of the free market has been by far the most important advantage brought about by globalization. The spread of multiculturalism and better international governance have also been brought about by globalization.

Kofi Annan once said that opposing globalization is like opposing the laws of science. One of the reasons why globalization has become so influential is that it offers infinite opportunities to all. In the past, the issue of globalization was shrouded in controversy mainly due to poor regulation measures and poor understanding of the concept. However, through education and better international globalization, it has become evident that globalization is a positive force in the world.

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IvyPanda. (2018, May 17). Do the Benefits of Globalization Outweigh the Costs? https://ivypanda.com/essays/the-advantages-of-globalization-far-outweighs-its-disadvantages/

"Do the Benefits of Globalization Outweigh the Costs?" IvyPanda , 17 May 2018, ivypanda.com/essays/the-advantages-of-globalization-far-outweighs-its-disadvantages/.

IvyPanda . (2018) 'Do the Benefits of Globalization Outweigh the Costs'. 17 May.

IvyPanda . 2018. "Do the Benefits of Globalization Outweigh the Costs?" May 17, 2018. https://ivypanda.com/essays/the-advantages-of-globalization-far-outweighs-its-disadvantages/.

1. IvyPanda . "Do the Benefits of Globalization Outweigh the Costs?" May 17, 2018. https://ivypanda.com/essays/the-advantages-of-globalization-far-outweighs-its-disadvantages/.

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IvyPanda . "Do the Benefits of Globalization Outweigh the Costs?" May 17, 2018. https://ivypanda.com/essays/the-advantages-of-globalization-far-outweighs-its-disadvantages/.

Advantages and Disadvantages of Globalization

Globalization is a hotly discussed subject today, with supporters claiming it may lead to economic progress, cultural interchange, and new possibilities. At the same time, opponents suggest it can cause inequality, cultural homogenization, and environmental degradation (Nkang Ogar et al., 2019). This essay will explore the advantages and disadvantages of globalization and provide evidence to support each perspective. The phenomenon of globalization is the result of technological advancements and the growth of international trade and communication (Ramazanov et al., 2021). It has enabled nations to participate in global economic operations, resulting in greater commerce, investment, and cultural interaction. While globalization has brought economic growth and development, cultural exchange and understanding, and technological innovation and progress, it has also increased inequality, threatened local cultures, and created environmental challenges.

Globalization is a dynamic phenomenon changing how people live, work, and connect. While globalization has generated controversy and criticism, it has also had significant advantages. The possibility for economic growth and development is one of the most important benefits of globalization. Globalization has created opportunities for businesses to expand their markets, access resources more efficiently, and increase productivity (Surya et al., 2021). As a result, more investment, job creation, and improved living standards have occurred in many regions of the globe. For example, the rise of multinational firms and foreign investment has aided China’s and India’s fast economic development. In 2020, China’s economy surpassed that of the United States to become the world’s largest economy by purchasing power parity (Vázquez Rojo, 2022). The growth has lifted millions of people out of poverty and improved their standard of living.

Another advantage of globalization is the opportunity for cultural exchange and understanding. Globalization has promoted exchanging ideas, beliefs, and behaviors across civilizations, expanding global variety and understanding. For instance, the popularity of Korean pop music and television dramas, known as K-pop and K-dramas, has spread to many countries worldwide, creating a new form of cultural exchange (Kanozia & Ganghariya, 2021). Similarly, the growth of English as a worldwide language has increased cross-cultural contact and understanding.

A third advantage of globalization is the spread of technology and innovation. Globalization has created opportunities for transferring technology and knowledge across borders, improving communication, healthcare, and education. For example, the development of mobile technology has transformed how people communicate and access information worldwide (Bahrini & Qaffas, 2019). Moreover, globalization has encouraged scientific cooperation and idea sharing, leading to advancements in domains such as health and renewable energy.

Globalization has been the subject of heated controversy in recent years, with detractors pointing to its harmful effects on economies, society, and cultures throughout the globe. Although globalization has excellent benefits, it has substantial drawbacks that cannot be overlooked. One of the most significant shortcomings of globalization is the uneven distribution of wealth and power that it has brought about. While globalization has generated economic growth and development, the benefits have been distributed unevenly. Wealthy corporations and individuals have gained the most, while workers and communities have suffered job losses and decreased wages. For instance, the growth of sweatshop labor in developing countries has led to exploiting workers, unsafe working conditions, and environmental degradation (Lotfi et al., 2021). Furthermore, global businesses often have more power and influence than governments, resulting in a lack of accountability and oversight.

Secondly, globalization has the potential for cultural homogenization and loss of diversity. As global markets become more integrated, local cultures and traditions are often replaced by homogenous global trends. This can lead to a loss of unique cultural practices and a sense of identity for communities worldwide. For example, the proliferation of fast food companies such as McDonald’s and Starbucks has resulted in the homogeneity of culinary culture in many nations, replacing local cuisine with international fast food choices. Similarly, the appeal of Western fashion and entertainment has pushed indigenous forms of creative expression to the margins.

Thirdly, globalization harms the environment and climate change. Globalization has increased consumption and production, leading to more significant resource depletion, pollution, and greenhouse gas emissions. Thus, global trade growth has increased shipping and air transportation, contributing to carbon dioxide and other greenhouse gas emissions (Hulme, 2021). Besides that, natural resource extraction, such as deforestation and mining, has damaged habitats and ecosystems.

Finally, globalization has both positive and negative aspects. Even though globalization has resulted in an uneven distribution of wealth and power, it has also helped millions of people rise out of poverty by improving their access to lower-cost products and services. While globalization could result in a loss of cultural variation and uniformity, it has also promoted more mutual understanding and respect among individuals from many origins. Similarly, whereas technology may cause environmental harm and climate change, it has also created opportunities for environmental betterment and greater collaboration. Consequently, it is critical to recognize and promote globalization’s positive elements while addressing its negative ones. We can advance toward a more equitable and sustainable global system if we can mitigate negative consequences while enhancing positive ones.

In conclusion, the debate over the advantages and disadvantages of globalization is ongoing and complex. Even though globalization has opened up new avenues for economic expansion and cultural interaction, it has also brought new obstacles in the form of inequality, environmental degradation, and cultural uniformity. It is evident from examining these arguments and counterarguments that the influence of globalization is complicated and diverse. Lastly, politicians, corporations, and people must endeavor to mitigate the adverse effects of globalization while promoting its sound effects. Doing so can create a more equitable and sustainable global system that benefits everyone regardless of background or location. In light of this, it is essential to recognize the value of diverse perspectives and engage in open dialogue to solve the complex challenges of globalization.

Bahrini, R., & Qaffas, A. (2019). Impact of information and communication technology on economic growth: Evidence from developing countries.  Economies ,  7 (1), 21. https://doi.org/10.3390/economies7010021

Hulme, P. E. (2021). Unwelcome exchange: International trade as a direct and indirect driver of biological invasions worldwide.  One Earth ,  4 (5), 666–679. https://doi.org/10.1016/j.oneear.2021.04.015

Kanozia, R., & Ganghariya, G. (2021). Cultural proximity and hybridity: Popularity of Korean pop culture in India.  Media Asia ,  48 (3), 219–228. https://doi.org/10.1080/01296612.2021.1902079

Lotfi, M., Walker, H., & Rendon-Sanchez, J. (2021). Supply Chains’ Failure in Workers’ Rights regarding the SDG COMPASS: A Doughnut Theory perspective.  Sustainability ,  13 (22), 12526. https://doi.org/10.3390/su132212526

Nkang Ogar, J., Nwoye, L., & Bassey, S. A. (2019). Archetype of globalization: Illusory comfort of neo-colonialism in Africa.  International Journal of Humanities and Innovation (IJHI) ,  2 (3), 90–95. https://doi.org/10.33750/ijhi.v2i3.46

Ramazanov, I. A., Panasenko, S. V., Cheglov, V. P., Krasil’nikova, E. A., & Nikishin, A. F. (2021). Retail transformation under the influence of Digitalisation and technology development in the context of globalization.  Journal of Open Innovation: Technology, Market, and Complexity ,  7 (1), 49. https://doi.org/10.3390/joitmc7010049

Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021). Economic growth, increasing productivity of SMEs, and open innovation.  Journal of Open Innovation: Technology, Market, and Complexity ,  7 (1), 20. https://doi.org/10.3390/joitmc7010020

Vázquez Rojo, J. (2022). United States, China and the dispute for Global Hegemony: A Comparative Analysis.  HUMAN REVIEW. International Humanities Review / Revista Internacional De Humanidades ,  11 (Monográfico), 1–13. https://doi.org/10.37467/revhuman.v11.4302

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What is Globalisation? Advantages and Disadvantages of Globalisation

Advantages and Disadvantages of Globalisation: Globalisation implies the speedup in exchanges and movement (of goods and services, capital, human beings, or even cultural practices) all across the globe. One of the globalisation effects is that it increases and encourages the interactions between the various regions and populations worldwide. Although globalisation was necessary for development, there are also some disadvantages to it. In this writing, we will discuss the pros and cons of globalisation.

What is Globalisation? Advantages and Disadvantages of Globalisation 2021

Advantages of globalisation, disadvantages of globalisation.

• Comparison Table for Advantages and Disadvantages of Globalisation
• FAQs on Pros and Cons of Globalisation

In international economics, globalisation can be defined as the web of relationships between the economies worldwide through international investments and trade. While the history of globalisation travels back to ancient times, the modern era started in the early nineteenth century.

The opposite of globalisation — also known as free-market trade across the borders — is protectionism. This economic policy attempts at protecting domestic businesses from foreign competitions and labour markets, generally by imposing trade barriers such as tariffs.

As a result of globalisation, people all over the world enjoy many advantages.

• Transfer of Technology: The transfer of technology all over the globe is excellent for us. Any country can choose to borrow the technology by the agreement and implement it in their country for the overall development. People can easily be in touch with people from any part of the world by using advanced technologies at a minimal cost, effort, and time.
• Better Services: Globalisation always offers us better services. With technological advancement, services such as electricity supply, water supply, internet, mobile networking, and other services have become more accessible and better than before. Easy internet access throughout the world is also the contribution of globalisation.
• Standardisation of Living: The critical process of globalisation is the integration of economics, enabling countries to fight against problems like poverty and improve people’s living standards. Many researchers have stated that when any country opens up its trade to the world, its economic growth rate is faster, and the living standards tend to improve.
• Development of Infrastructure: Technological advancements and their spread throughout the globe help in improving the country’s infrastructure. Governments are more enabling of delivering their services to the citizens. Development of the infrastructure implies the overall development of the respective countries. Here it is essential to say that the economic growth and development of a country’s infrastructure are compatible with each other.
• Foreign Exchange Reserves: By globalisation, countries are able to build foreign exchange reserves due to the international financial flows.
• Economic Growth: Globalisation requires optimum utilisation of the resources wherein the deficit resources are procured, and surplus resources are exported to various other countries. This guarantees overall economic growth.
• Contribution to the World GDP Growth Rate: Globalisation guarantees the contribution of each country to the world GDP growth rate.

The globalisation keeps doing well to us is not always true. It impacts our lives in a multidimensional manner. So, it has a few disadvantages as well.

Growing Inequality: Globalisation increases inequality throughout the globe by expanding specialisation and trade. Even though profession and trade amp up the per-capita income, it might cause relative poverty.

To explain this, we will use an example. All dominated MNCs around the globe are located in the US. All these businesses are buying cheap labour from developing or underdeveloped countries for product manufacturing or assembling. India, China and Africa are significant examples of this. It increases the employment rates of these countries, but they are far behind lagging relatively developed countries. Again, these companies coming to such countries for cheap labour also deprive the country’s people of working. So, it showcases that relative unemployment and poverty are being created in these developed countries as well.

Increasing the Unemployment rate: Globalisation is increasing the unemployment rate. Where individuals are getting jobs, how is this possible? Here is the explanation.

Globalisation needs higher-skilled workers at cheaper rates. But countries where the Institutions are comparatively weaker, aren’t capable of producing highly skilled workers. As a result of which, the unemployment rates are increasing in these countries.

When foreign companies invest primarily in developing countries, they hire workers from that country. In some scenarios, their wages are significantly lower compared to the other developed countries – the demand for such employees in developed countries is much lower. Moreover, along with the emergence of the Global Economic Crisis, jobs are at risk.

Trade Imbalance: The trade balance refers to the value ratio between the country’s export and import services and goods. Due to globalisation, any country can trade to any part of the globe.

In some instances, the developing countries are highly dependent on developed countries for import goods, but the export capabilities are lower than the imports. The imbalance in trade has been taking place. So, trade imbalance balances values between any country’s import and export of goods and services. It is also known as trade deficits. Trade imbalance might be an increase in the developed countries by the competitors.

Environmental Loots: The pace at which industrialisation is increasing is an outcome of globalisation. Industrialisation encourages economic growth. However, it harms the environment. Globalisation destroys nature, and it hurts humans very severely.

Let’s try to understand the scenario with the example. Coca-Cola world’s leading soft drink company. This company consumes a large amount of water to make soft drinks. In a north Indian state, Uttar Pradesh, a bottling plant of Coca-Cola, was shut down by the government order due to the local farmers’ too much water usage.

In Kerala, a south Indian state, the Coca-Cola plant was also shut down due to water pollution supplied to the local communities. Also, MNCs are using the natural resources from different countries extensively for personal gain. Various chemical industries are highly harmful to the health of humans by polluting the soil, water, air.

Comparison Table for Advantages and Disadvantages of Globalisation

FAQ’s on Pros and Cons of Globalisation

Question 1. How does globalisation encourage market extension?

Answer: Above all, Globalization encourages market extension. It offers an opportunity for domestic companies to go global. For instance, domestic companies can be witnessing saturation in demand for their services or products. Still, by globalisation, domestic companies are able to sustain and satisfy the needs of foreign customers.

Question 2. How does globalisation offer affordable products?

Answer: With access to the latest technologies, the countries are able to provide products to their citizens at affordable rates. Globalisation encourages competition in the domestic economies and its endeavour for competing against the competition, companies lessen the product price or following the penetration pricing policy.

Question 3. When did globalisation start?

Answer: The first wave of globalisation began in the 19th century in the year 1914. This started in order to change with the first globalisation wave, which roughly took place over the century ending in 1914.

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Essay on Globalization

Updated February 13, 2023

Globalization

Essay on Globalization refers to the integration of people, businesses, and governments. Most importantly, this integration occurs on a global scale. It is also the process of international business expansion. As a result of globalization, many businesses expand internationally and project a global image. As a result, the significant investment seems required to establish global companies. Globalization refers to integrating the Indian economy with the global economy. Although globalization has been occurring for the past 100 years, it has accelerated dramatically in the last 50. Product and service production and exchange have increased.

Globalization is the result of positive privatization and liberalization. It is primarily an economic process of connection and integration that is socially and culturally connected. It results from several policies to change the world and promote greater interconnectedness and integration. Essay on Globalization explains that it is a concept or strategy for interacting and uniting individuals, businesses, and governments on a global scale.

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How did Globalization Emerge?

To begin with, people have traded goods since the dawn of civilization. Commodities were first transported from China to Europe in the first century BC. The Silk Road was a way to transport goods. The Silk Road stretched across a vast area. This has never happened before in the history of globalization.

Globalization has been spreading slowly since the first century BC. Another significant breakthrough occurred in the seventh century AD. During this period, the Islamic faith spread. Most notably, Arab traders aided in the rapid expansion of global trade. By the ninth century, Muslim traders controlled the majority of international trade. Furthermore, spices were an essential commodity in commerce at the time. The Age of Discovery in the 15th century marked the beginning of actual global trade. European traders connected the two continents, East and West. America is first discovered around this time. As a result, European trade reached America.

Beginning in the nineteenth century, the United Kingdom dominated every continent. As a result, global trade rapidly expanded in scope. In addition, the British built mighty railways and ships. As a result, transportation moved much faster. Furthermore, the rate of commodity manufacturing increased dramatically. Moreover, communication accelerated, which aided international trade. Finally, in the twentieth and twenty-first centuries, globalization reached its pinnacle. The internet and technology, in particular, advanced, significantly boosting globalization. As a result, e-commerce has a significant impact on globalization.

Advantages and Disadvantages of Globalization

As a result of studies, with the support of the World Bank and other international organizations, and with increased faith in the market economy and new policies focusing on private capital and resources, many developing countries have begun the structural adjustment process. Globalization has given developing countries more opportunities. Increased market access and technology transfer have the potential to improve their standards and productivity.

Globalization has enabled countries to gain access to a larger labor pool. If a developing country requires skilled labor, it can import it from another country. In contrast, outsourcing low-skill labor to developing countries with low living costs allows wealthier countries to lower the cost of goods sold and pass those savings on to consumers.

Since globalization, the Indian economy and standard of living have improved. An individual’s purchasing habits can change, especially if they work with international businesses. As a result, most cities have improved, with higher living standards and increased business growth.

The primary goal of commerce is to gain access to other countries’ resources. Smartphones, for example, could not be grown or manufactured if the transfer of resources between nations was not permitted.

At the same time, globalization has resulted in issues such as rising inequality between and within countries, financial instability, and deteriorating environmental conditions. As an intriguing display, globalization is also viewed as a global network of connectivity and competitiveness. Global firms and nations are now competing fiercely.

Consequences of Globalization

To begin with, foreign direct investment (FDI) is rapidly increasing. This is, without a doubt, a significant contribution to globalization. FDI contributes to industrial development. There is also an increase in the number of multinational corporations. Furthermore, FDI would benefit many third-world countries. Technological innovation is another vital contribution of globalization. The most notable aspect of globalization is its emphasis on technological advancement. Furthermore, globalization has resulted in the transfer of technologies. Technology would undoubtedly benefit the average person.

Globalization has improved product quality. This improvement is due to manufacturers’ efforts to produce high-quality products because of the stress of fierce rivalry. If the first product is of poor quality, people will quickly switch to another of higher quality.

Conclusion – Essay on Globalization

Essay on globalization is a reasonably obvious reality right now. What is most notable is that it continues to grow. Trading, above all, is a beautiful blessing because of its numerous positive economic and social consequences. Globalization has helped to provide jobs for a sizable portion of the population and provide a wide range of high-quality, reasonably priced goods and general economic benefits to emerging nations. However, it has also resulted in rivalry, crime, anti-national acts, terrorism, and other adverse outcomes. As a result, it has brought both delight and pain with it.

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4 Effects of Globalization on the Environment

• 15 Apr 2021

Globalization —defined in the online course Global Business as the increased flow of goods, services, capital, people, and ideas across international boundaries—has brought many changes in its wake.

While globalization can positively and negatively impact society, its effect on the environment is primarily negative. Here’s a breakdown of how globalization impacts society and the environment and what business leaders can do to reduce these negative consequences.

How Does Globalization Affect Society?

The world has become more connected than ever before through the increase in technological advancements and economic integrations. Advanced economies are formed as domestic businesses transform into international ones and further contribute to the spread of technology around the world.

There are several benefits of globalization , such as increased international trade and cooperation and less international aggression. Social globalization —the sharing of ideas and information between countries—has led to innovation in the medical, technological, and environmental preservation industries.

Additionally, globalization has improved the quality of life in several developing nations. This includes implementing efficient transportation systems and ensuring accessibility to services such as education and healthcare.

However, globalization can also have negative effects on society, such as increased income inequality and substandard working conditions in developing countries that produce goods for wealthier nations. Income inequality is directly related to globalization as it further increases the gap between more advanced and developing areas of a nation. As a result, it can also increase the risk of societal violence.

Along with its societal effects, globalization has a lasting impact on the environment—and typically not a positive one.

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What Are the Effects of Globalization on the Environment?

1. Increased Transport of Goods

One of the primary results of globalization is that it opens businesses up to new markets in which they can sell goods and source labor, raw materials, and components.

Both of these realities mean finished products travel farther now than ever before—potentially halfway around the globe. In the past, products were more likely to be produced, sold, and consumed locally. This increased transport of goods can impact the environment in several ways, including:

• Increased emissions: The farther a product travels, the more fuel is consumed, and a greater level of greenhouse gas emissions is produced. According to a report by the International Transport Forum , CO2 emissions from transport will increase 16 percent by 2050. These emissions contribute to pollution, climate change , and ocean acidification around the world and have been shown to significantly impact biodiversity.
• Habitat destruction: Transportation—especially when land-based—requires infrastructure like roads and bridges. The development of such infrastructure can lead to issues including habitat loss and pollution. The more ships that travel by sea, the greater the chances for major oil spills or leaks that damage the delicate marine environment.
• Invasive species: Every shipping container and vessel presents an opportunity for a living organism—from plants to animals to fungus—to hitch a ride to a new location where it can become invasive and grow without checks and balances that might be present in its natural environment.

2. Economic Specialization

One often-overlooked side effect of globalization is that it allows nations and geographical regions to focus on their economic strengths while relying on trading partners for goods they don’t produce themselves. This economic specialization often boosts productivity and efficiency.

Unfortunately, overspecialization can threaten forest health and lead to serious environmental issues, often in the form of habitat loss, deforestation, or natural resource overuse. A few examples include:

• Illegal deforestation in Brazil due to an increase in the country’s cattle ranching operations, which requires significant land for grazing
• Overfishing in coastal areas that include Southeast Asia, which has significantly contributed to reduced fish populations and oceanic pollution
• Overdependence on cash crops, such as coffee, cacao, and various fruits, which has contributed to habitat loss, especially in tropical climates

It’s worth considering that globalization has allowed some nations to specialize in producing various energy commodities, such as oil, natural gas, and timber. Nations that depend on energy sales to fund a large portion of their national budgets, along with those that note “energy security” as a priority, are more likely to take intervening actions in the market in the form of subsidies or laws that make transitioning to renewable energy more difficult.

The main byproduct of these energy sources comes in the form of greenhouse gas emissions, which significantly contribute to global warming and climate change.

3. Decreased Biodiversity

Increased greenhouse gas emissions, ocean acidification, deforestation (and other forms of habitat loss or destruction), climate change, and the introduction of invasive species all work to reduce biodiversity around the globe.

According to the World Wildlife Fund’s recent Living Planet Report , the population sizes of all organisms—including mammals, birds, fish, amphibians, and reptiles—have decreased 68 percent since 1970. Latin America and Africa—two rapidly developing regions important to global trade—have seen disproportionate levels of biodiversity loss, especially among environmentally sensitive fish, reptiles, and amphibians.

While this decrease in biodiversity has many causes, it’s widely believed that the issues listed above have contributed in part.

4. Increased Awareness

While many of globalization’s environmental effects have been negative, its increase has heightened environmental awareness worldwide.

Greater connectivity and higher rates of international travel have made it easier than ever for individuals to see the effects of deforestation, habitat loss, and climate change on the environment. This, in turn, has contributed to new laws, regulations, and processes that limit negative effects.

Globalization as a Threat and an Opportunity

Globalization has allowed society to enjoy many benefits, including increased global cooperation, reduced risk of global conflict, and lower prices for goods and commodities. Unfortunately, it’s also led to serious negative effects on the environment.

Since it isn’t feasible for globalization to end or reverse, it’s likely the situation will worsen until nations, governing bodies, and other organizations are compelled to implement laws and regulations that limit negative effects.

Businesses and industries that operate globally have an incentive to take whatever voluntary actions they can to reduce the potential for negative consequences. Doing so can not only provide an organization greater control over its initiatives, but also a powerful marketing and communication tool .

Some ways businesses address climate change include:

• Transitioning to renewable energy sources
• Choosing greener infrastructures or equipment
• Reducing energy consumption
• Creating credible climate transition plans
• Raising awareness among employees

In addition, investing in renewable energy and packaging, embracing responsible land-use management, and shifting goods production to move closer to the end customer are all viable options that businesses can and should consider. The challenge lies in balancing a desire to embrace corporate social responsibility with the need to turn a profit and run a successful business.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with our four-week Global Business course. In addition, explore our Business and Climate Change course to help your organization adapt to and embrace business risks and opportunities created by climate change, as well as our other online courses related to business in society .

This post was updated on February 28, 2024. It was originally published on April 15, 2021.

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What are the advantages and disadvantages of globalization?

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