pros of globalization essay

30 Globalization Pros and Cons

Chris Drew (PhD)

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

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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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6 Pros and Cons of Globalization in Business to Consider

• 01 Apr 2021

Throughout history, commerce and business have been limited by certain geographic constraints. In its earliest days, trade happened between neighboring tribes and city-states. As humans domesticated the horse and other animals, the distances they could travel to trade increased. These distances increased further with the development of seafaring capabilities.

Although humans have been using ships for centuries to transport goods, cargo, people, and ideas around the world, it wasn’t until the development of the airplane that the blueprint of a “globalized economy” was laid. This was for a simple reason: You can travel greater distances faster than ever before.

The development of the internet accelerated this process even more, making it easier to communicate and collaborate with others. Today, your international co-worker, business partner, customer, or friend is only a few taps or clicks away.

Globalization has had numerous effects—both positive and negative—on business and society at large. Here’s an overview of the pros and cons of globalization in business.

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What Is Globalization?

Globalization is the increased flow of goods, services, capital, people, and ideas across international boundaries according to the online course Global Business , taught by Harvard Business School Professor Forest Reinhardt.

“We live in an age of globalization,” Reinhardt says in Global Business . “That is, national economies are even more tightly connected with one another than ever before.”

How Globalization Affects Daily Life

Globalization has had a significant impact on various aspects of daily life.

For example, it’s changed the way consumers shop for products and services. Today, 70 percent of Americans shop online. In 2022, there were 268 million digital buyers in the US and by 2025, this number is predicted to reach 285 million.

In addition, the globalized economy has opened up new job markets by making it more feasible to hire overseas workers. This has created a wide range of career opportunities for both job seekers and employers.

The emergence of remote work post-pandemic was also made possible by globalization. According to a survey from WFH Research , only seven percent of paid workdays in the US were remote in 2019. However, this number climbed to 29 percent by January 2024.

Check out the video below to learn more about globalization, and subscribe to our YouTube channel for more explainer content!

Advantages of Globalization

1. economic growth.

It’s widely believed that one of the benefits of globalization is greater economic growth for all parties. There are several reasons why this might be the case, including:

• Access to labor: Globalization gives all nations access to a wider labor pool. Developing nations with a shortage of knowledge workers might, for example, “import” labor to kickstart industry. Wealthier nations, on the other hand, might outsource low-skill work to developing nations with a lower cost of living to reduce the cost of goods sold and pass those savings on to the customer.
• Access to jobs: This point is directly related to labor. Through globalization, developing nations often gain access to jobs in the form of work that’s been outsourced by wealthier nations. While there are potential pitfalls to this (see “Disproportionate Growth” below), this work can significantly contribute to the local economy.
• Access to resources: One of the primary reasons nations trade is to gain access to resources they otherwise wouldn’t have. Without this flow of resources across borders, many modern luxuries would be impossible to manufacture or produce. Smartphones, for example, are dependent on rare earth metals found in limited areas around the world.
• The ability for nations to “specialize”: Global and regional cooperation allow nations to heavily lean into their economic strengths, knowing they can trade products for other resources. An example is a tropical nation that specializes in exporting a certain fruit. It’s been shown that when nations specialize in the production of goods or services in which they have an advantage, trade benefits both parties.

2. Increased Global Cooperation

For a globalized economy to exist, nations must be willing to put their differences aside and work together. Therefore, increased globalization has been linked to a reduction—though not an elimination—of conflict.

“Of course, as long as there have been nations, they've been connected with each other through the exchange of lethal force—through war and conquest—and this threat has never gone away,” Reinhardt says in Global Business . “The conventional wisdom has been that the increased intensity of these other flows—goods, services, capital, people, and so on—have reduced the probability that the world's nations will fall back into the catastrophe of war.”

3. Increased Cross-Border Investment

According to the course Global Business , globalization has led to an increase in cross-border investment. At the macroeconomic level, this international investment has been shown to enhance welfare on both sides of the equation.

The country that’s the source of the capital benefits because it can often earn a higher return abroad than domestically. The country that receives the inflow of capital benefits because that capital contributes to investment and, therefore, to productivity. Foreign investment also often comes with, or in the form of, technology, know-how, or access to distribution channels that can help the recipient nation.

Disadvantages of Globalization

1. increased competition.

When viewed as a whole, global free trade is beneficial to the entire system. Individual companies, organizations, and workers can be disadvantaged, however, by global competition. This is similar to how these parties might be disadvantaged by domestic competition: The pool has simply widened.

With this in mind, some firms, industries, and citizens may elect governments to pursue protectionist policies designed to buffer domestic firms or workers from foreign competition. Protectionism often takes the form of tariffs, quotas, or non-tariff barriers, such as quality or sanitation requirements that make it more difficult for a competing nation or business to justify doing business in the country. These efforts can often be detrimental to the overall economic performance of both parties.

“Although we live in an age of globalization, we also seem to be living in an age of anti-globalization,” Reinhardt says in Global Business . “Dissatisfaction with the results of freer trade, concern about foreign investment, and polarized views about immigration all seem to be playing important roles in rich-country politics in the United States and Europe. The threats in Western democracy to the post-war globalist consensus have never been stronger.”

2. Disproportionate Growth

Another issue of globalization is that it can introduce disproportionate growth both between and within nations. These effects must be carefully managed economically and morally.

Within countries, globalization often has the effect of increasing immigration. Macroeconomically, immigration increases gross domestic product (GDP), which can be an economic boon to the recipient nation. Immigration may, however, reduce GDP per capita in the short run if immigrants’ income is lower than the average income of those already living in the country.

Additionally, as with competition, immigration can benefit the country as a whole while imposing costs on people who may want their government to restrict immigration to protect them from those costs. These sentiments are often tied to and motivated—at least in part—by racism and xenophobia.

“Meanwhile, outside the rich world, hundreds of millions of people remain mired in poverty,” Reinhardt says in Global Business. “We don't seem to be able to agree about whether this is because of too much globalization or not enough.”

3. Environmental Concerns

Increased globalization has been linked to various environmental challenges, many of which are serious, including:

• Deforestation and loss of biodiversity caused by economic specialization and infrastructure development
• Greenhouse gas emissions and other forms of pollution caused by increased transportation of goods
• The introduction of potentially invasive species into new environments

While such issues are governed by existing or proposed laws and regulations, businesses have made climate change concerns and sustainability a priority by, for example, embracing the tenets of the triple bottom line and the idea of corporate social responsibility .

Managing the Risks of Globalization

The world is never going to abandon globalization. While it’s true that individual countries and regions put policies and practices in place that limit globalization, such as tariffs, it’s here to stay. The good news is that businesses and professionals willing to prepare for globalization’s challenges by developing strong social impact skills have the potential to benefit immensely.

Whether you’re a business owner, member of executive leadership, or an employee, understanding the impacts of globalization and how to identify its opportunities and risks can help you become more effective in your role and drive value for your organization.

Taking a course like Global Business is one path toward developing international business skills and gaining an understanding of the macroeconomic, political , and social conditions that continue to impact globalization.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with Global Business , one of our online business in society courses . If you aren't sure which course is the right fit, download our free course flowchart .

This post was updated on February 26, 2024. It was originally published on April 15, 2021.

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22 Globalization Pros and Cons

Our world is becoming a much smaller place. We can quickly communicate with people who are on the other side of the planet. A person with a computer and a good idea can create an e-commerce platform which reaches the entire world. In many ways, we are closer to each other than ever before.

Yet despite this closeness, we are still divided in the broad brush of humanity. There are 200+ countries on our planet with borders that are enforced in some way. People cannot travel freely across borders without some form of identification or consequence if caught not following laws and standards. Globalization asks this question: what would happen if all those borders went away? Here are the globalization pros and cons to think about when looking at a borderless planet.

What Are the Pros of Globalization?

1. It encourages free trade. Without borders in place, consumers can purchase items from anywhere in the world at a reduced cost. There would be fewer barriers in place, like tariffs, sales taxes, or subsidies because there wouldn’t be nations in place that could add restrictions. From 2008-2015, the Washington Post reported that the G20 nations placed more than 1,200 different restrictions on imports and exports. That goes away with true globalization, which means free trade will be encouraged.

2. More trade means the potential for more jobs. When there are fewer barriers in place to purchase items, then consumers will generally purchase more things. This creates the foundation that businesses need to create more jobs. Globalization with free trade increases competition as well, which means innovation must be part of the equation. Consumers benefit from that innovation with lower pricing, which means more products can be purchased, and that can stimulate further growth.

3. It eliminates currency manipulation. Many countries today manipulate their currencies to benefit their local economy. Even the three “primary” currencies of the world do this: the pound, the euro, and the dollar. Donald Trump announced in 2017 that the dollar was becoming “too strong,” which is a statement that was meant to potentially weaken the dollar. With globalization, countries no longer have a need to manipulate their currencies to obtain price advantages, so it is the consumer who can benefit from the outcome.

4. Open borders mean more opportunities to develop poor areas of the world. There are many nations in the world today that are in a state of entry-level industrialization. Poverty is a feature in many of these developing countries. Through the process of globalization, the removal of borders allows the people in these areas to experience greater prosperity because each area gains the ability to access what they need. There are fewer opportunities to suppress people at the expense of others so only a few can benefit from success.

5. Business tax havens go away in globalization. Numerous organizations over the years have been accused of placing their money in countries that have generous tax laws. These countries, which are often referred to as “tax havens,” allow the business to not pay as much in taxes. It is a process which awards the executive team with high salaries and bonuses, but leaves the common worker behind and limits the funds a government receive for operational purposes. Through the process of globalization, the tax havens go away because the borders go away.

6. It allows for open lines of communication. When borders are removed, people have the ability to communicate with one another more freely. There is a greater intermingling of cultures, which allows people to have a greater perspective about the world. When we have access to more information, we have an ability to make better decisions. Instead of people from a different country being considered an alien, we would all be considered human. It becomes a place that is more open and tolerant.

7. It could stop the issue of labor exploitation. One of the ways that goods are produced cheaply in the world today is because of labor exploitation. This can be seen with child labor, prisoner labor, and human trafficking. Workers are further exploited through the implementation of unsafe working conditions because they may have entered a country illegally and face jail time or worse if they report on their conditions. By opening borders, it becomes possible to open business activities, thereby removing the need of a black market for cheap goods or services.

8. It limits the potential for abuse because there are fewer structures in place. In our current bordered structure, there are 200+ different administrations that can potentially abuse their people. The levels of accountability that can be in place to stop these abuses are usually implemented at the leisure of those who are in charge. That is how dictators can come into power and then stay in power. Globalization limits those structures and introduces a global system of accountability, creating a safety net which could potentially stop violent conflicts before they start.

9. We could begin pooling resources to do great things. Multiple countries are running space programs right now. Some private businesses are doing the same thing. If they could pool their resources and combine talents to work toward one single goal instead of having multiple agencies all trying to do the same thing, we could be more efficient with our innovation in the area of space exploration. The same principle could be applied to virtually any industry or idea.

What Are the Cons of Globalization?

1. It generally makes the rich become rich and the poor to become mired in poverty. Globalization is supposed to be about free trade, but the reality of the situation is that only true globalization which removes national borders can do this. Under our current planetary structure, there are value-added taxes that can exceed 20% for some countries, which limits the access that people have to imported products. This means the rich can access what they want or need to become richer, but the poor get trapped in poverty because they don’t have the means to access success.

2. Jobs get transferred to lower-cost areas. Jobs can be created through globalism, but they tend to be created in the areas where labor costs are the cheapest. Even in a world that is completely without borders, the cost of doing business is going to be cheaper in some areas than in others. Businesses will transfer or create jobs in these low-cost areas so they can remain competitive. Instead of it becoming a race to the top, many people in a borderless world could experience a race to the bottom instead.

3. Globalism creates a culture of fear. Even in jobs aren’t exported to cheaper areas of the planet, business owners can hold the threat of doing so over the heads of their current workers to gain salary concessions. It creates an environment where workers, especially those who would be in the current Middle Class around the world, would be unable to have any leverage when it came to their take-home pay or working conditions. People would be forced to either freelance their skills, create their own business, or accept the race to the bottom of the pay scale to keep their employment.

4. It creates a political system where the biggest and the richest have influence. In many developed countries today, there are large companies, lobbyists, and wealthy individuals who are highly involved in politics so that they can have a favorable set of regulations and laws. If national borders were to disappear, this issue would become a global problem. The largest businesses and wealthiest people could hoard global resources for themselves through whatever government was put into place, enhancing the social inequalities that are already being seen on smaller scales.

5. Richer regions will always consume more resources. It’s not just the largest corporations and wealthiest people who benefit from globalization. Regions that are wealthy will also consume more resources under the guise that they produce more for the rest of the world. This is already happening today. According to information from the United Nations Development Program, the G20 nations consume 86% of the world’s resources. In comparison, the poorest 80% of the world consume the other 14%.

6. Diseases travel faster in a world that is globalized. When people stay within their own regions, there are fewer problems with communicable diseases. The open access that we have today already increases the threat of a new disease being spread to all corners of the planet in less than 14 days. If there were no borders and people could travel freely to wherever they wished to go, this issue would cause even the most remote parts of the planet to be exposed to potentially deadly health concerns.

7. Social programs that act as safety nets could be removed. Many countries today offer their poorest of the poor a safety net for survival. This includes food stamps, housing provisions, and other benefits that may go away in a world that has fully globalized. A single country can typically care for its own with a system of taxation, social benefits, and healthcare. Extend that to the world and the sheer poverty that so many people face would make it nearly impossible to have a meaningful safety net in place.

8. Cheating could become a lot easier to do. We’re already experiencing a leadership gap in the world today when it comes to the distribution of resources. According to Oxfam, the world already produces 17% more food than the current human population requires for a meaningful standard of life, yet even in the United States, 20% of children live in households that experience food insecurity. Globally, tens of thousands of children die of hunger annually. If we already have the resources to fix it, then cheating and corruption is preventing us from doing it. Eliminating borders will only make it easier to do this because it would create less, not more, oversight.

9. It could lead to greater worker exploitation. If there is a race to the bottom for worker wages globally, then there would be nothing to stop organizations from exploiting workers so that goods could be created cheaply. Households in such a scenario would be earning less, so they’d be demanding lower prices. That could mean a change in global laws that could create more prison-based labor, changes to child labor laws, or changes in worker safety standards to meet the potential demands.

10. It won’t be a level playing field for everyone when it happens. A world of open borders might seem like a great idea because of all the globalization benefits that are possible, but we must look at how the creation of a borderless planet would come about. The countries of the world which currently have the most input on global affairs would be the loudest voices at the negotiation table. The smallest countries that exist today would likely struggle to even get a seat at that table. This means going borderless would create an uneven playing field that might eliminate nations, but would still create pockets of people who are more privileged than others. People are not generally going to give up what they must raise the boats of others to an equal playing field without receiving some benefit.

11. It could have a negative impact on the environment. This globalization negative can be seen in two different scenarios. Let’s say that production levels increase because everyone sees a boost in their economic circumstances. This would potentially increase pollution levels that could acidify the air, the ocean, and cause more issues with global warming. Or we could say that fewer people are buying things because their economic circumstances have worsened due to lower job salaries. This would create more waste and rot in the world which could also acidify the air and ocean, leading to more issue with global warming.

12. Losing borders could mean losing an identity. We often identify ourselves from our nationality, ethnicity, and family background. In a world that goes borderless, that nationality would merge into a person’s ethnicity. Larger countries are already experiencing this issue to a certain extent. You might have been born in Iowa, but most people would call themselves an American before calling themselves an Iowan. On a planetary scale, this would mean large swaths of culture would lose their identity and a loss of that culture would be a great loss for humanity.

13. There’s a reason why we say that “absolute power corrupts absolutely.” This familiar phrase is attributed to Lord Acton, who was a 19th century politician who admittedly took the phrase from writers who had expressed a similar thought. When only one person holds all the power over a governing body, then it corrupts them. There are numerous examples of this. Roman emperors even declared themselves to be gods. Imagine what having one person in control of the entire planet and its unlimited power would be like using our examples from history, especially if that person had some talent or skill that made them seem almost supernatural.

The globalization pros and cons show that there would be many benefits to a borderless world, but there would also be great challenges which would need to be solved for it to be a workable solution. Whether one supports a world without borders or supports the current state of affairs, one truth can be found: we have a responsibility to help each other. When a minority of the world consumes a vast majority of its resources, that is evidence which shows we must heed the call to help people in need.

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The pros and cons of globalization.

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A story in the Washington Post said “20 years ago globalization was pitched as a strategy that would raise all boats in poor and rich countries alike. In the U.S. and Europe consumers would have their pick of inexpensive items made by people thousands of miles away whose pay was much lower than theirs. And in time trade barriers would drop to support even more multinationals expansion and economic gains while geo political cooperation would flourish.”

There is no question that globalization has been a good thing for many developing countries who now have access to our markets and can export cheap goods. Globalization has also been good for Multi-national corporations and Wall Street. But globalization has not been good for working people (blue or white collar) and has led to the continuing deindustrialization of America.

Globalization is a complicated issue. It is necessary to evaluate the pros and cons before drawing any conclusions.

Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty.

1. Free trade is supposed to reduce barriers such as tariffs, value added taxes, subsidies, and other barriers between nations. This is not true. There are still many barriers to free trade. The Washington Post story says “the problem is that the big G20 countries added more than 1,200 restrictive export and import measures since 2008

2. The proponents say globalization represents free trade which promotes global economic growth; creates jobs, makes companies more competitive, and lowers prices for consumers.

3. Competition between countries is supposed to drive prices down. In many cases this is not working because countries manipulate their currency to get a price advantage.

4. It also provides poor countries, through infusions of foreign capital and technology, with the chance to develop economically and by spreading prosperity, creates the conditions in which democracy and respect for human rights may flourish. This is an ethereal goal which hasn’t been achieved in most countries

5. According to supporters globalization and democracy should go hand in hand. It should be pure business with no colonialist designs.

6. There is now a worldwide market for companies and consumers who have access to products of different countries. True

7. Gradually there is a world power that is being created instead of compartmentalized power sectors. Politics is merging and decisions that are being taken are actually beneficial for people all over the world. This is simply a romanticized view of what is actually happening. True

8. There is more influx of information between two countries, which do not have anything in common between them. True

9. There is cultural intermingling and each country is learning more about other cultures. True

10. Since we share financial interests, corporations and governments are trying to sort out ecological problems for each other. – True, they are talking more than trying.

11. Socially we have become more open and tolerant towards each other and people who live in the other part of the world are not considered aliens. True in many cases.

12. Most people see speedy travel, mass communications and quick dissemination of information through the Internet as benefits of globalization. True

13. Labor can move from country to country to market their skills. True, but this can cause problems with the existing labor and downward pressure on wages.

14. Sharing technology with developing nations will help them progress. True for small countries but stealing our technologies and IP have become a big problem with our larger competitors like China.

15. Transnational companies investing in installing plants in other countries provide employment for the people in those countries often getting them out of poverty. True

16. Globalization has given countries the ability to agree to free trade agreements like NAFTA, South Korea Korus, and The TPP. True but these agreements have cost the U.S. many jobs and always increase our trade deficit

• The general complaint about globalization is that it has made the rich richer while making the non-rich poorer. “It is wonderful for managers, owners and investors, but hell on workers and nature.”

• Globalization is supposed to be about free trade where all barriers are eliminated but there are still many barriers. For instance161 countries have value added taxes (VATs) on imports which are as high as 21.6% in Europe. The U.S. does not have VAT.

• The biggest problem for developed countries is that jobs are lost and transferred to lower cost countries.” According to conservative estimates by Robert Scott of the Economic Policy Institute, granting China most favored nation status drained away 3.2 million jobs, including 2.4 million manufacturing jobs. He pegs the net losses due to our trade deficit with Japan ($78.3 billion in 2013) at 896,000 jobs, as well as an additional 682,900 jobs from the Mexico –U.S. trade-deficit run-up from 1994 through 2010.”

• Workers in developed countries like the US face pay-cut demands from employers who threaten to export jobs. This has created a culture of fear for many middle class workers who have little leverage in this global game

• Large multi-national corporations have the ability to exploit tax havens in other countries to avoid paying taxes.

• Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages, living and working conditions), as well as lack of concern for environment, mismanagement of natural resources, and ecological damage.

• Multinational corporations, which were previously restricted to commercial activities, are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power, due to globalization.

• Building products overseas in countries like China puts our technologies at risk of being copied or stolen, which is in fact happening rapidly

• The anti-globalists also claim that globalization is not working for the majority of the world. “During the most recent period of rapid growth in global trade and investment, 1960 to 1998, inequality worsened both internationally and within countries. The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources while the poorest 80 percent consume just 14 percent. “

• Some experts think that globalization is also leading to the incursion of communicable diseases. Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners of the globe.

• Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an increase in human trafficking.

• Social welfare schemes or “safety nets” are under great pressure in developed countries because of deficits, job losses, and other economic ramifications of globalization.

Globalization is an economic tsunami that is sweeping the planet. We can’t stop it but there are many things we can do to slow it down and make it more equitable.

What is missing?

Leadership – We need politicians who are willing to confront the cheaters. One of our biggest problems is that 7 of our trading partners manipulate their currencies to gain unfair price advantage which increases their exports and decreases their imports. This is illegal under WTO rules so there is a sound legal basis to put some kind of tax on their exports until they quit cheating.

Balanced Trade – Most of our trading partners can balance their trade budgets and even run a surplus. We have not made any effort to balance our trade budget and have run a deficit for more than 30 years resulting in an $11 trillion deficit. The trade deficit is the single biggest job killer in our economy, particularly manufacturing jobs. We need the government to develop a plan to begin to balance our trade deficit even though this is not a political priority in either party.

Trade Agreements – Both the NAFTA and the South Korean Korus trade agreements might have been good for Wall Street and the multi-national corporations but they eliminated jobs in America and expanded our trade deficit. The upcoming Trans Pacific Trade Agreement will do the same thing and Congress should not fast track this bad agreement for a dozen reasons.

Enforcing the rules – China ignores trade rules and WTO laws with reckless abandon. Besides currency manipulation they subsidize their state owned companies to target our markets, and provide funding to their state owned companies that dump their products in America. They also steal our technologies, sell counterfeit versions of our products, and impose tariffs and other barriers anytime they want - as we do nothing to stop them. China does not deserve to be on our most favored nation list and we need to tax their exports to us until they stop these illegal activities.

What is good for third world countries, like Kenya, or countries with tremendous growth, like China, has not been good for American workers. Globalization is deindustrializing America as we continue to outsource both manufacturing blue collar and white collar jobs. Supporters of globalization have made the case that it is good because it has brought low priced imported goods, but they have not matched the decline of wages in the middle class and will not offset the loss of many family wage jobs

Globalization is like being overwhelmed by a snow avalanche. You can’t stop it – you can only swim in the snow and hope to stay on top. I would like to make the argument that the US should try a lot harder to swim in the snow and stay on top. We can’t stop globalization but there are many policies and strategies we can use to make it more equitable. We can enforce the trade laws, force the competition to play by the same rules, and stop giving our competitors the tools (technology and R& D) to ultimately win the global war.

Mike Collins is the author of Saving American Manufacturing. His website is www.mpcmgt.com.

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Pros and Cons of Globalization CSS ESSAY 2021

Table of Contents

Thesis Statement

Globalization has brought numerous advantages and disadvantages to the world, impacting various aspects of society, economy, and culture. In this This essay we will explore the pros and cons of globalization, highlighting its benefits in terms of economic growth, technological advancements, and cultural exchange, while also discussing its challenges related to inequality, cultural homogenization, and environmental concerns.

Introduction

Globalization has become a defining feature of the modern world, shaping various aspects of society, economy, and culture. As nations have become more interconnected and interdependent, it is important to examine the pros and cons of this phenomenon. While globalization has brought numerous benefits such as economic growth, technological advancements, and cultural exchange, it has also presented challenges including inequality, cultural homogenization, and environmental concerns. This essay will explore these pros and cons, shedding light on the complexities of globalization.

Exposition: Understanding Globalization

Globalization can be defined as the increasing interconnectedness and interdependence of nations in various aspects, including trade, communication, and technology. It has its roots in historical developments such as the expansion of trade routes and colonialism. However, it has gained momentum in recent decades due to advancements in transportation, communication, and the liberalization of trade policies. Globalization has enabled the flow of goods, services, capital, and information across borders, leading to increased global integration.

Pros of Globalization

Economic growth and development.

One of the key advantages of globalization is the potential for economic growth and development. Increased trade and investment opportunities have opened up new markets and expanded access to consumers worldwide. Businesses can now reach customers in different countries, leading to job creation, enhanced productivity, and overall economic prosperity. Globalization has also facilitated the transfer of technology and knowledge, fueling innovation and economic progress.

Technological Advancements

Globalization has accelerated the dissemination of information and knowledge through advancements in technology. The rapid exchange of ideas and expertise has led to breakthroughs in various fields, driving technological advancements. Innovations in areas such as communication, transportation, and medicine have transformed industries and improved the quality of life. Global collaboration and knowledge sharing have become easier, fostering scientific and technological progress.

Cultural Exchange and Diversity

The interconnectedness brought about by globalization has facilitated cultural exchange and diversity. People have greater exposure to diverse cultures, ideas, and perspectives from around the world. This exposure enriches societies by promoting cross-cultural understanding, tolerance, and appreciation. The exchange of artistic, literary, and culinary traditions has broadened cultural horizons, fostering a global tapestry of diversity and creativity.

Cons of Globalization

Economic inequality.

Despite the potential for economic growth, globalization has also led to increased economic inequality. The benefits of globalization are not evenly distributed, and wealth and resources tend to concentrate in the hands of a few. Developing countries often face challenges in competing with more developed nations, leading to disparities in wealth and living standards. Additionally, the exploitation of cheap labor in some parts of the world has raised concerns about fair trade practices and workers’ rights.

Cultural Homogenization

The dominance of Western cultural values and consumerism is a significant challenge posed by globalization. As global markets expand, there is a tendency for cultural homogenization, where local traditions and identities are marginalized or eroded. The influence of Western media, fashion, and entertainment can overshadow indigenous cultures, leading to the loss of cultural diversity. Preserving and promoting local traditions and languages becomes crucial in maintaining cultural richness and identity.

Environmental Concerns

Globalization has also raised environmental concerns. The increased movement of goods and people has resulted in higher carbon emissions and an ecological footprint. The overexploitation of natural resources to meet global demand poses threats to biodiversity and ecosystems. Environmental challenges, such as climate change and deforestation, require international cooperation and sustainable practices to mitigate their impact.

Addressing the Challenges

To manage the challenges of globalization, various strategies can be employed.

Economic Reforms and Redistribution

Implementing fair trade practices, ensuring workers’ rights, and promoting inclusive economic policies are essential in reducing economic inequality. Progressive taxation can help redistribute wealth and address disparities in income distribution.

Preserving Cultural Diversity

Supporting local arts, traditions, and languages is crucial in preserving cultural diversity. Governments and communities can take measures to protect and promote their cultural heritage, fostering intercultural dialogue and understanding.

Sustainable Development and Environmental Stewardship

Investing in renewable energy, adopting sustainable production and consumption practices, and strengthening international agreements on climate change and environmental protection are necessary steps in addressing environmental concerns. Global cooperation is vital in tackling shared environmental challenges.

Case Studies and Examples

Numerous case studies demonstrate both the positive impacts and negative consequences of globalization. For instance, countries like China and India have experienced remarkable economic growth and poverty reduction as a result of globalization. On the other hand, social unrest and environmental degradation have been observed in some regions due to unsustainable development practices.

Globalization is a multifaceted phenomenon with both benefits and challenges. While it has contributed to economic growth, technological advancements, and cultural exchange, it has also raised concerns regarding inequality, cultural homogenization, and environmental sustainability. Addressing these challenges requires a balanced approach that maximizes the benefits of globalization while mitigating its negative impacts. By promoting inclusive economic policies, preserving cultural diversity, and embracing sustainable practices, societies can navigate the complexities of globalization and create a more equitable and sustainable world.

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The Effects of Globalization: A Comprehensive Analysis

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• Topic: Globalization , Indian Economy

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History of Globalization

Features of globalization.

• It leads to greater interaction between different populations in social terms.
• Culturally, globalization represents the exchange of ideas, values and artistic expression between cultures and even a trend towards the development of a single world culture.
• Globalization has paid political attention to intergovernmental organizations such as the United Nations and the World Trade Organization.
• Legally, globalization has changed the creation and enforcement of international law.

Factors That Led to Globalization

Globalization on the example of indian economy.

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