5 DEFINITIONS OF GLOBALIZATION:

1. Globalization is the process of growing and expanding to exist throughout the entire
world.
2. Globalization means the speedup of movements and exchanges (of human beings,
goods, and services, capital, technologies, or cultural practices) all over the planet.
3. It is the increased interconnectedness and interdependence of peoples and
countries.
4. It is the increasing interdependence of world economies as a result of the growing
scale of cross-border trade of commodities and services, the flow of international capital
and the wide and rapid spread of technologies.
5. Is defined as the set of processes (economic, social, cultural, technological,
institutional) that contribute to the relationship between societies and individuals around
the world.
5 ADVANTAGES OF GLOBALIZATION:
1. It promotes and increases interactions between different regions and populations
around the globe.
2. Global and regional cooperation allow nations to heavily lean into their economic
strengths, knowing they can trade products for other resources.
3. Globalization allows companies to find lower-cost ways to produce their products. It
also increases global competition, which drives prices down and creates a larger variety
of choices for consumers. Lowered costs help people in both developing and already-
developed countries live better on less money.
4. Globalization allows companies to find new, specialized talent that is not available in
their current market. For example, globalization gives companies the opportunity to
explore tech talent in booming markets such as Berlin or Stockholm, rather than Silicon
Valley.
5. 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.
5 DISADVANTAGES OF GLOBALIZATION:

1. Increased competition, 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.

2. Globalization can introduce disproportionate growth both between and within nations.
These effects must be carefully managed economically and morally. It 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.

3. 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, introduction of
potentially invasive species into new environments.

4. Globalization can increase unemployment rate. Globalization demands for higher-

skilled work with cheaper price. But countries where Institutions are relatively weak are
not capable of producing highly skilled workers. As a result, the unemployment rate is
increasing in those countries.

5. The policies permitting globalization tend to advantage companies that have the
resources and infrastructure to operate their supply chains or distribution in many
different countries, which can hedge out small local businesses.

References:

https://youmatter.world/en/definition/definitions-globalization-definition-benefits-effects-
examples/
https://velocityglobal.com/blog/globalization-benefits-and-challenges/
https://schoolofpoliticalscience.com/advantages-and-disadvantages-of-globalization/
https://online.hbs.edu/blog/post/pros-and-cons-of-globalization