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Advantages and Disadvantages of Globalization

Introduction

Currently, people across the world are connected more than ever before. Additionally , the

present world is also characterized by an easy and quick flow of information, products, services,

and money more than it did in the past (Zafarullah, Habib, & Ahmed 10-12). For instance, products

manufactured by one of a country finds its way out to the rest of the world. Additionally, it is also

much more comfortable for individuals to communicate, do business, and travel around the globe

with much ease. Therefore, the whole given scenario or rather phenomenon is what has come to

be termed as globalization. The phenomenon was pioneered in the past by a group of merchants,

internationalists, explorer, and colonialists (Eriksen 12-15).

None, the less in recent times' globalization, has significantly been increased by various

aspects such as improved transportation, information, and communication technology. Improved

transportation, communication, and information technology substantially contribute to the ease

and speed at which information, products, and services are shared across the globe (Steger 8-13).

Consequently, globalization has also been encouraged and promoted by the availability of trade

liberation, the deregulation of financial markets. Ultimately, these aspects lead to the elimination

of trade barriers, which eventually lifts off the restriction posed on foreign investment. Foreign
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investment is essential in economic integrations that are relevant to the encouragement of

globalization.

Besides, globalization has always had. It continues to have a significant influence and

impact on the social aspect of the world as an individual need to familiarize themselves and quickly

adapt to the continually changing environment. Additionally, borders of given countries no longer

look the same as they did before as they are now full of individuals from different backgrounds

living and interacting with each other day by day. With the interaction comes learning and sharing

of the new culture, information, ideas, and even trading activities, among other vital aspects that

are key for human survival (Zafarullah, Habib, & Ahmed 18-20). With this aspect, globalization

ensures that traditional boundaries and barriers that exist between not only people but also the

societies and economies are broken.

Ascribed to the broken boundaries and barriers are increased political, social, and economic

unification and interrelation between different regions. Despite the unification and interrelation of

the given aspects, a point to note is that globalization does not occur uniformly (Pieterse 50-53).

Profoundly, since globalization does not occur consistently, it influences and impacts individuals

differently to the geographical periphery in which they reside. Ultimately, the impacts may not

only be between interactions at personal levels but also between states or countries across the

globe.

Furthermore, the impact of globalization can either be termed advantageous or

disadvantageous to people, states, or countries. With the geographical periphery, globalization may

be beneficial to the given regions while the others are experiencing disadvantages. The most

challenging aspect of globalization is whether the advantages outweigh the disadvantages

experienced globally.
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Advantages of Globalization

Globalization, as some say, has brought about various positive aspects such as increased

competition in the world, availability of high-quality products and services to the people, efficient

markets, and stabilized security in the society. The competition present in the current market is

established by globalization. It has been effective in ensuring that services and goods of high

quality are available in the global market (Zafarullah, Habib, & Ahmed 35-37). When countries

compete on a worldwide scale, this means that each will try to maintain its position in the global

market and thus will eventually lead to the production of much-improved goods and services.

Additionally, increased competition leads to the availability of a variety of products that, in turn,

leads to increased customer demands.

Therefore, for companies to meet the increased demand, then they have to come up with

even newer ideas, products, and services to meet the expectation of their customers. A point to

note is that increased competition and availability of efficient markets are closely interrelated

(Pieterse 67-69). Even though globalization has led to increased market competition, this aspect

has primarily directed to the establishment of efficient markets and stabilized security all over the

world. Increased competition has entirely led to the need for efficiency in the market where an

equilibrium is created between the sellers and the customers. Therefore, globalization has led to

the availability of affordable products and services in the world market as a result of market

efficiency.

Moreover, since countries all over the world are interdependent with each other, it is

challenging for them to attack each other. Thus, this builds a sense of stabilized security globally.

Apart from increased security, globalization has also led to the formulation and establishment of

human rights that are vital for the safety of individuals. Additionally, these rights can be monitored
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and upheld all over the world hence fostering the wellbeing of societies in the world. Ultimately,

globalization has also led to the creation of new companies and jobs and thus have aided in the

reduction of poverty and sustainability of life by acting as sources of income for many individuals

in the society.

Another advantage of globalization is the opportunity to learn new cultures, which leads to

the establishment of a diverse aspect between individuals. Understanding of different cultures

ensures that good relations are established between individuals and countries. Globalization also

leads to the movement of capital without fetter and thus allowing states to access foreign currency

and foreign investment, which is a positive move towards maintaining lower interest rates.

Disadvantages of Globalization

Apart from the mentioned and discussed the advantages of globalization, several

disadvantages can be attributed to the onset of globalization. Many individuals see globalization

as an aspect that helped reduce poverty in which it is not a justified case as some allude that rather

than eliminating poverty, globalization has instead preserved poverty (Zafarullah, Habib, &

Ahmed 60-62). Study shows that very few countries over the world benefit from the aspect of

globalization. From the point of technology improved, and the introduction of technology all over

the world may be a critical aspect that has led to the presence of inequalities in society (Ravallion

620-624). Additionally, globalization through international trade and investment has introduced

the use of foreign currencies, especially in developing countries that have also contributed to the

levels of inequalities in these countries.

However, taking a closer analysis, one will agree that developing countries would not have

made progress in terms of development without primarily opening up to globalization in terms of

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trade. Additionally, poverty cannot be attributed to engaging in trading activities as trading

activities are them to help the community develop and acquire a vast opportunity for ideas, goods,

and services. None the less a point is to note that it is very challenging and difficult to assess how

developing countries have benefited from globalization since it is a much complex aspect with a

variety of massive global effects. Moreover, the growth of poverty can be proved by the presence

of mismanagement and corruption in developing countries.

Developed countries have also been disadvantaged a great deal by globalization in that

companies in these countries move their production practices to cheaper developing countries

hence leading to a decrease in employment opportunities in the developed countries (Ravallion

634-638). Moreover, while expanding their production industries to developing countries leads to

the destruction of natural areas while attempting to find more space for the expansion of their

industries. Globalization has also led to the change in climate, which possesses a problem and

disadvantage to the ecology of the world. Massive and periodic transportation of goods all over

the world due to improved transportation technology such as the use of airplanes, trucks, and ships

has led to the pollution of the environment, which results from harmful gaseous emissions from

the given means of transport.

Another disadvantage that cannot be overlooked is the aspect of insecurity and fluctuation

of prices in the global market. With globalization comes increased production of goods and

services, which in turn increases consumption and utilization of the available natural resources in

the environment. Therefore, the increased consumption and the use of natural resources mean that

most of the resources become depleted each day, which entirely poses a threat to human survival

(Ravallion 638-640). One the other hand, increased competition in the global market has led rot h

fluctuation of prices as many developed countries have entirely been forced to reduce the costs of
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their goods and service to maintain their position in the global market. Moreover, there is a country

such as China that produces many products at a much lower price than many of the developed

countries which have to compete with her.

A fact that is mostly left out of the topic is the impact that globalization brings on culture.

Learning of new culture is despite being advantageous as many may claim, it poses a setback too

to the communities that the culture is introduced (Pieterse 88-90). The main affected countries are

developing countries that have been whitewashed with western culture. As a result of the given

aspect, globalization is seen to lead to the loss of cultural boundaries due to the increased contact

and interaction with western cultures leading to the neglect of local cultures of the particular

countries.

Conclusion

In conclusion, a point to be noted that globalization is part and parcel of the world, and

thus, it is an aspect that cannot be ignored. Additionally, globalization affects the world both

directly and indirectly by impacting differently to various groups of communities worldwide.

Moreover, the discussion and analysis of different aspects of globalization and their effects on

human life and wellbeing. People have always had mixed responses to whether globalization is

doing more harm to society than good. None the less from the given analysis of both the advantages

and disadvantages of globalization, it is clear that the topic of globalization has a significant

complexity. This aspect is due to its nature of extensively impacting both developing and

developed countries all over the world.

The advantages are associated with the positive impacts of globalization on society. These

positive impacts include market efficiency that arises from competitive marketing practices
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globally, leading to the production of improved and affordable goods and services. Other positive

effect includes secure market platforms, improved products and services, and employment

opportunities that arise from the globalization of businesses. Also, globalization can be understood

by its ability to help reduce poverty as a result of an employment opportunity that arises from

service globalization.

Conversely, despite the fact the globalization comes with a lot of positive impacts, all the

effects mentioned also tend to establish new risks and challenges to the society. As mentioned

earlier, globalization brings with several risks such as loss of employment for individuals in

developed countries due to the outsourcing of cheap labor, increased competition in global

markets, leading to increased fluctuation and environmental pollution. A point to note is that

environmental pollution results from the emissions that result from transportations activities and

destruction of natural land for the expansion of industries and acquiring or resources. None, despite

all the given aspects, globalization will remain a challenging topic as communities in the world

will always stay interconnected and interdependent with each other.

Work cited

Eriksen, Thomas Hylland. "Globalization." Handbook of Political Anthropology. Edward Elgar

Publishing, 2018.
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Pieterse, Jan Nederveen. Globalization and culture: global mélange. Rowman & Littlefield

Publishers, 2019.

Ravallion, Martin. "Inequality and globalization: A review essay." Journal of Economic

Literature 56.2 (2018): 620-642.

Steger, Manfred B. Globalization: A concise introduction. Vol. 86. Oxford University Press, 2017.

Zafarullah, Habib, and Ahmed Shafiqul Huque. Managing development in a globalized world:

Concepts, processes, institutions. Routledge, 2017.