The Pros and Cons of Globalization

By: Moncenilla, A.D, M.

Globalization is either a threat or a benefit to all of us, or neither of both. But what

is Globalization? Globalization has touched and motivated every part of our lives; from

the products we purchase to the food we put on top of our table, to the ways we

communicate and catch up with one another and we are tied to some of the issues we

face in the modern era that includes climate change, trade and commerce, terrorism,

loans, and the spread of deadly diseases. Globalization is a method and is the very

reason why the businesses, organizations, workers, technology, products, ideas and

information beyond national borders and culture moved. A few have praised

globalization for opening borders and connecting cultures and politics, while others have

blamed it for disrupting local economies and eliminating jobs. It unfolds the growing

interdependence of the world’s economies, cultures, and populations brought about by

cross-border trade in goods and services, technology, and flows of investment, people,

and information. In economic terms, it describes an interdependence of nations around

the globe fostered through free trade. It is also the process of interaction and integration

among people, companies, and governments worldwide. But for me, it is a part of our

existence wherein all things also existed before us, and there is nothing else we can do

about it, because we cannot change the past and we are already living in the age of

Globalization.
 What are the pros or advantages of Globalization? They are: Economic Growth,

Increased Global Cooperation, Increased Cross-Border Investment, Globalization

Broadens Access to Goods and Services, and Globalization Can Lift People Out of

Poverty. Economic growth is the increase in real GDP, an increase in the value of

national output, income and expenditure. Essentially, the benefit of economic growth is

living higher standards, real incomes and the ability to devote more resources to areas

like health care and education. Here in our country, our GDP has increased and is

expected to increase in 2026 and our GNP has also decreased; so, to sum it up, the

higher the GDP and the lower the GNP, the price rises. Gladly, our economic growth

has recovered and will continue to recover in the next upcoming years to come. In

Increased Global Corporation, for a globalized economy to exist, nations must be willing

to put their differences aside and work together; due to this, increased globalization has

been linked to a reduction though not elimination of conflict. Like the countries China

and the Philippines, for them to further understand each other, they will set aside their

grudges against each other and help one another to unite as one and accomplish their

business.

In Increased Cross-Border Investments, the capital benefits because it earns

higher return abroad than domestic; the capital contributes to investment and

productivity because the country that receives the inflow of capital has benefit. Foreign

investments can help the recipient nation comes with the form of technology, know-how

with access to distribution. In other words, having cross-border investments helps our

country a lot but has also left us with great debt, for our country’s economy to rise, some

have sold our most precious properties to some richer countries just to get us by.
Having loans from one country over another is a pretty bad idea for someone to decide,

because how are we going to pay for all the loans and debts we borrowed and some

countries have lent to us.

But in the meantime, the money we loaned is the money that we will be using for

other funds and finances, and it will also indeed save us from poverty, that is why, trust

is also earned and well, it contributes investment to the productivity of the economic

status. In Globalization broadens access to Goods and Services, it is globalization that

makes more goods and services available to more people at lower prices. You are

benefitting from globalization and you buy a product that comes from abroad, hence,

business owners have also benefitted by having the access to a bigger market for the

goods and services. In my own words, other companies find it productive and wiser to

lower their cost in terms of the products they sell, like the USA, the iOS they own was

manufactured to China due to lower costs for the other parts of the phone and its

equipment. In Globalization can lift people out of poverty, the developing countries are

most likely the poorest countries and has lower economic status more compared to the

developed ones. But with Globalization, it is our key to lift us out of poverty and to save

our country and the economic growth and status from decreasing.

The following cons or disadvantages were: A lot of workers were jobless due to

low-cost labor, Globalization has not protected Labor, Environmental or Human Rights,

the rich became richer while the poor became poorer, and Racial Discrimination. Due to

low-cost labor, a lot of people were jobless and others were underpaid, actually, this

issue should be raised because a lot of Filipino people are a graduate of any degree in

college but they are overqualified and their salary is too low. The countries with the
weakest labor and environmental protections and the lowest wages have caused a

“race to the bottom” in which companies actively seek the countries. Much of the value

added by globalization is not captured and redistributed by governments and has

increased the flow of goods, services, and capital, there are still plenty of tax havens.

The context of “richer people being rich and poor people being poor” here in the

Philippines is that a lot of people became poor and has been squatting and living in any

slums in the country while only a few rich people only became rich, because a lot of

corrupt politicians are using the citizen’s money on other businesses while others have

plundered, embezzled, and pickpocket it. And lastly, racial discrimination is also a very

common issue today because when you are black, you may receive a low-income

minimum wage more compared to the white ones.