Nickson Menezes, IIPM MUM, H2, 08.

Positive Effects of Globalization
Increased Competition One of the most visible positive effects of globalization is the improved quality of products due to global competition. Customer service and the 'customer is the king' approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a 'survival of the fittest' situation. Investment and Capital Flows One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of FII that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition. Spread of Technical Know-How While it is generally assumed that all the innovations happen in the Western world, due to globalization, the know-how also comes into developing countries due to globalization. Without globalization, the knowledge of new inventions, medicines would remain cooped up in the countries that came up with them and no one else would benefit. But due to improved political ties, there is a flow of information both ways. And this point - the spread of know-how, can also be expanded to include economic and political knowledge, which too has spread far and wide. The most obvious example of the spread of knowledge is that the Western world today are waking up to the benefits of Ayurveda and Yoga, while the Western antibiotics and flooding the Indian markets improving the quality of life (and the longevity too) of people in India. Spread of Culture The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them. Organizations for Environmental and Social Concerns In cognizance of the damage that has been caused to our world over the years, the individual nations have decided to come together to find a way to save our world from ourselves. Organizations monitoring climate change as well as those which look at the welfare of our animals and marine life, are undoubtedly one of the positive effects of globalization on the environment.

Multinatonal Companies and corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Job insecurity. Local industries are being taken over by foreign multinationals. Earlier people had stable. Increased job competition has led to reduction in wages and consequently lower standards of living. This has happened because manufacturing work is outsourced to developing nations like China where the cost of manufacturing goods and wages are lower. Now people live in constant dread of losing their jobs to competition.Negative Effects of Globalization Developed nations have outsourced manufacturing and white collar jobs. Bad apects of foreign cultures are affecting the local cultures through TV and the Internet. There is increase in human trafficking. Deadly diseases like HIV/AIDS are being spread by travellers to the remotest corners of the globe. Companies have set up industries causing pollution in countries with poor regulation of pollution. permanent jobs. Terrorists use the Internet for communicating among themselves. Enemy nations can spread propaganda through the Internet. Prisoners and child workers are used to work in inhumane conditions. scientists and accountants have lost their jobs due to outsourcing to cheaper locations like India. Terrorists have access to sophisticated weapons enhancing their ability to inflict damage. That means less jobs for their people. The rich are getting richer and the poor are becoming poorer. . Fast food chains like McDonalds and KFC are spreading in the developing world. The increase in prices has reduced the governments ability to sustain social welfare schemes in developed countries. editors. Programmers. Safety standards are ignored to produce cheap goods. Globalization has led to exploitation of labor. The benefits of globalization is not universal. People are consuming more junk food from these joints which has an adverse impact on their health.

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