The Positive Side of Globalization

Globalization has a positive side as well. Supporters of globalization argue that it

has the potential to make this world a better place to live and will solve some deep-
seated problems like unemployment and poverty. The marginal are getting a
chance to exhibit in the world market.

Here are some other arguments for globalization:

 The proponents of global free trade say that it promotes global economic
growth, creates jobs, makes companies more competitive, and lowers prices
for consumers. It also provides poor countries, through infusions of foreign
capital and technology, with the chance to develop economically by
spreading prosperity creates the conditions in which democracy and respect
for human rights may flourish.
 According to libertarians, globalization will help us to raise the global
economy only when the involved power blocks have mutual trust and
respect for each other’s opinion. Globalization and democracy should go
hand-in-hand. It should be pure business with no colonialist designs.
 Now there is a worldwide market for companies and consumers to access
products from different countries.
 There is a world power that is being created gradually, instead of
compartmentalized power sectors. Politics are merging and decisions that
are being made are actually beneficial for people all over the world.
 There is more influx of information between two countries.
 There is cultural intermingling. Each country is learning more about other
cultures.
 Since we share financial interests, corporations and governments are trying
to sort out ecological problems for each other.
 Socially we have become more open and tolerant toward each other, and
people who live in the other part of the world are not considered aliens.
 Most people see speedy travel, mass communications and quick
dissemination of information through the Internet as benefits of
globalization.
Benefits of globalisation

1. Free trade Free trade is a way for countries to exchange goods and resources.
This means countries can specialise in producing goods where they have a
comparative advantage (this means they can produce goods at a lower opportunity
cost). When countries specialise there will be several gains from trade:

1. Lower prices for consumers

2. Greater choice of goods
3. Bigger export markets for domestic manufacturers
4. Economies of scale through being able to specialise in certain goods
5. Greater competition

2. Free movement of labour

Increased labour migration gives advantages to both workers and recipient

countries. If a country experiences high unemployment, there are increased
opportunities to look for work elsewhere. This process of labour migration
also helps reduce geographical inequality. This has been quite effective in
the EU, with many Eastern European workers migrating west.
Also, it helps countries with labour shortages fill important posts. For
example, the UK needed to recruit nurses from the far east to fill shortages.
However, this issue is also quite controversial. Some are concerned that free
movement of labour can cause excess pressure on housing and social
services in some countries. Countries like the US have responded to this
process by actively trying to prevent migrants from other countries.

3. Increased economies of scale

Production is increasingly specialised. Globalisation enables goods to be produced

in different parts of the world. This greater specialisation enables lower average
costs and lower prices for consumers.

4. Greater competition

Domestic monopolies used to be protected by a lack of competition. However,

globalisation means that firms face greater competition from foreign firms.

5. Increased investment

Globalisation has also enabled increased levels of investment. It has made it easier
for countries to attract short term and long term investment. Investment by
multinational companies can play a big role in improving the economies of
developing countries.
POSITIVE EFFECTS

It would be rather difficult to discuss the extent of the positives that globalization
has had on the world at large. But still, here are some of the positive effects of
globalization and the positive impacts they have had on so many demographic
segments of society.

Global market.
Most successful emerging markets in developed countries are a result of
privatization of state owned industries. In order for these industries to increase
consumer demand many of them are attempting to expand and extend their value
chain to an international level. The impact of globalization on business management
is seen by the sudden increase of number of transactions across the borders. In
protecting yields and maintaining competitiveness, businesses are continuing to
develop a wide range of their footprint as it lowers cost and enjoys economies of
scale (Shah A.,2009)

Multinational corporations is a result of globalization. They occupy a central role

within the process of globalization as evidenced through global foreign direct
investment inflows. Their concentrations within Europe in western economies has
led to size constraints, therefore there is a need for new geographical areas to operate
whereby they will face a lot of competition in the market. Through this they will
enlarge their market and enjoy economies of scale as globalization facilitates time
space compression, economies compete at all levels including that of attracting
investors (Smith V.A and Omar M.,2005).

Foreign trade

Globalization has created and expanded foreign trade in the world. Things that
were only found in developed countries can now be found in other countries across
the world. People can now get whatever they want and from any country. Through
this developed countries can export their goods to other countries. Countries do
business through international trade, whereby they import and export goods across
the global. These countries which export goods get comparative advantages.
Organizations have been established with a view to control and regulate the trade
activities of the countries in the world so to have fair trade. World trade
organizations emerged as a powerful international organization capable effectively
influencing individual governments to follow international trade rules, copyrights,
policies on subsidies, taxes and tariffs. Nations can not break rules without facing
economic consequences (Piaseck R. and Wolnicki M., 2004) .

The number of nations that are dependent on trade, foreign capital, and the world
financial markets increased greatly. Countries engaged in foreign trade enjoy
comparative advantage. The post Recardian trade theories predicted that
specialization in labor and capital intensive goods would bridge enormous wage
gaps between the poor and the rich countries, that is the developing and developed
countries, sparing the latter from massive labor immigration (Gerber J., 2002).