POSITIVE AND NEGATIVE

IMPACTS OF GLOBALIZATION
(In Partial Fulfillment of the Requirement for Purposive Communication)
By:
Sophia Larize R. Cunanan
Aeverly V. Quetua
Bachelor of Secondary Education
November 29, 2022

1
 Table of Contents

Contents Page

Table of Contents 2

Abstract 3

Introduction 4

Discussion 7

Discussion 1 7

Discussion 2 8

Discussion 3 9

Discussion 4 10

Discussion 5 12

Conclusion 13

References 15

2
 Abstract

The purpose of this paper is to provide detailed and relevant information about the

positive and negative impacts of globalization. Firstly, the content of this paper was

mainly based on the information gathered. This aims to provide critically reviewed

information on the topic such as; the definition, history, problem, and impacts. This paper

concludes various issues like; negative and positive effects. In addition, due to the

seeking of reliable information regarding the material, secondary data from other several

sources were used. Lastly, the gathered information depended on the provision of

accessible data. All the sources have been investigated by doing a precise analysis and

criticism. Through this paper, the author contributes to the study of the impacts of the

said topic. Moreover, guidance is offered for related works.

3
 Introduction

In recent years, the debate between advocates and critics of globalization about its

advantages and disadvantages cannot reach its end. Since people became more connected

and can exchange information easily due to globalization, many are torn about whether

globalization is an advantage or a disadvantage to us and the world.

Globalization is often referred to as a phenomenon (contemporary or modern) but it can

also be studied historically. Multiple historical records came from many centuries ago

that provide analysis of the concept and discussion about globalization. These records

provide discussion about how today’s economy was built and expanded because of the

foundation that was created centuries ago.

Globalization came to light during the last quarter of the twentieth century. It has

provided many opportunities as well as challenges to perform development. One

supporting evidence is the development that the world economy experienced during the

period mentioned. Some say that globalization caused the world to grow faster and

4
decrease poverty and inequality. On the other hand, some people argue the opposite of

the previous statement.

As globalization is a process that unites the world, different countries are rising because

of the movement towards different aspects such as economics, communications, etc.

Because of globalization, conflicts and inequalities arose and the world was catered to

several new changes. Few changes are trades in different countries and the exchange in

terms of culture. If conflicts are not resolved between countries, they will cause multiple

negative impacts around the world.

Globalization is a term used to describe a worldwide trend toward greater trade,

economic, communication, and financial interconnectedness. It is similar to the free

movement of products, people, and services around the world in an integrated manner

(Amin, 2014). Globalization has impacted numerous countries in various ways, including

economically, politically, and socially. It's a concept that describes the rapid integration

and interconnectedness of many nations, which has a global impact on international

events. Globalization had an impact on the things people buy, the environment, culture,

security, and cross-national idea exchange. Many variables contribute to the rapid

globalization trends. An increase in free-trade activities, developing technologies, or

global acceptance of markets can all be blamed for this acceleration in globalization. 

Moreover, "Globalization" is a trendy and contentious topic these days, although it is

often a hazy and ill-defined concept. The term can be extremely broad, embracing trade

and liberalization gains, as well as transportation cost savings and technical transfer. In

terms of impact, globalization discussions frequently consider its effects on economic

5
growth, employment, and income distribution all at once, without distinguishing between

between-country and within-country inequalities, as well as other social impacts such as

poverty alleviation opportunities, human and labor rights, environmental consequences,

and so on.

In addition, globalization is the process of bringing people from all around the world

together. In economics, globalization is described as the process by which businesses,

organizations, and countries begin to operate on a global scale. Globalization is most

frequently connected with economics, although politics and culture also influence and are

influenced by it. While globalization has been shown to improve the standard of living in

emerging countries in general, other analysts warn that it may have a negative influence

on local or expanding economies, as well as individual employees.

Meanwhile, globalization is not due to conquest, which has been the root of most past

historical periods in which a single economic system ruled over a broad geographical

area. Instead, the source is technological advancement. The prices of transportation,

travel, and, most importantly, the costs of exchanging information have all reduced

dramatically in the postwar period, almost entirely due to technical developments.

HISTORY

As stated in the previous statements, the term globalization has been used for a long time.

Since the birth of civilization, people have traded goods with their neighbors. As

communities advanced, people were able to go further afield to trade their goods for more

precious products found elsewhere. The Silk Road, a historic network of trade routes

6
connecting Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East,

is a good example of early globalization. For more than 1,500 years, Europeans

exchanged glass and manufactured goods for Chinese silk and spices, building a global

economy in which both Europe and Asia were accustomed to objects from far away.

Following European colonization of the New World, globalization exploded, and the

Columbian Exchange became known for the vast movement of plants, animals, foods,

civilizations, and ideas. Another example is the Triangular Trade network, which brought

manufactured goods from Europe to Africa, enslaved Africans to the Americas, and

returned raw materials to Europe is another illustration of globalization. As a result of

globalization, slavery has proliferated, illustrating that it can damage people just as easily

as it can connect them.

Due to rapid advancements, globalization has accelerated in recent years. Because of

developments in communication, businesses may now locate investment opportunities.

At the same time, developments in information technology enable quick communication

and financial asset transfers across national borders. Improved fiscal policies within

countries and international trade agreements between them also aid globalization.

Political and economic stability aid globalization. One of the reasons why Africa has not

benefited as much from globalization as Asia and Latin America, according to experts, is

the relative instability of many African countries.

Body

BENEFITS OF GLOBALIZATION

7
Due to globalization, several firms are promised to have and acquire low-cost materials

from different parts of the world. Because of globalization, businesses can take advantage

of lower labor costs in developing countries while utilizing the technical capabilities and

knowledge of more established economies.

As a result of globalization, the different pieces of a product that are used in

manufacturing come from different parts of the world. For example, the automotive

sector has long used globalization to manufacture different parts of a car in different

countries. Even seemingly simple items such as cotton T-shirts may involve companies

from numerous countries.

Globalization has an impact on services as well. Many American companies have

outsourced their call centers or information technology services to Indian companies. As

part of the North American Free Trade Agreement, automakers in the United States have

relocated their operations to Mexico, where labor costs are lower (NAFTA). As a result,

more employment is created in nations where they are required, which can benefit the

national economy and lead to a greater standard of living. China is a great example of a

country that has benefited much from globalization. Another example is Vietnam, where

rising rice prices as a result of globalization have allowed many impoverished rice

farmers to transcend poverty. As the standard of living rose, more children from low-

income families were able to attend school.

Consumers gain as well. Globalization reduces production costs in general. As a result,

firms can offer lower prices to clients. The average cost of commodities is a major factor

in rising living standards.

8
NEGATIVE BENEFITS

There are winners and losers in any transition, and those who reside in towns where jobs

are routinely outsourced overseas suffer the most. This effectively means that workers in

developed countries must compete for jobs with workers in lower-cost markets; unions

and workers may be unable to defend against employers that provide the option of

accepting lower pay or losing jobs to a lower-cost labor market supplier.

Globalization and the Economy

We are facing several complications due to the rapid change in the economy of the

emerging world, where economies are changing rapidly, the situation is more

complicated. People's working conditions are truly horrible at several points in the supply

chain. The garment industry in Bangladesh, for example, employs an estimated four

million people, but the average worker earns less in a month than a worker in the United

States. In 2013, a textile industrial building collapsed, killing more than 1,100 people.

Critics also believe that expanding job options for children in developing countries will

worsen the negative consequences of child labor and drive children away from education.

In general, critics blame globalization's effects for creating an atmosphere that exploits

workers in countries that lack proper protection.

According to studies, globalization may add to the income gap and inequality between

the more educated and less educated members of society. As a result, unskilled workers

9
may be affected by dropping wages, which are constantly under pressure due to

globalization.

In connection to that, Globalization in the banking sector is unquestionably influenced by

financial globalization. The impact of markets, economies, private enterprises, and

monopolies, as well as states on each other, is reflected in the averaging of banking risks

for all parties. As a result, monetary policy aims that are opposed may have the same

good effect. The study's goal is to establish conceptual, scientific, and methodological

research areas in the domain of banking risk diversification in the context of financial

globalization.

           According to Yuzvovich (2016), the key financial performance of the major

lending institutions of the Russian banking system as part of a comprehensive analysis of

the resulting indicators of financial and economic activities of the Russian banking sector

to identify the Russian banking sector's reliance on external factors. Globalization in the

financial sector, in particular, has an impact on globalization in the banking sector. As a

result of the integrative impact of markets, economies, private firms, and monopolies, this

is represented in average banking risks for all parties involved in the process. The authors

of this study have given the mechanism of integrative motion of economic processes

concerning the impact of financial globalization on monetary policy outcomes in various

nations. The evolution of market relations and the fast internationalization of finance

result in continuous risk transformations that necessitate new risk management

techniques and methods.

10
Globalization and the Environment

           However, with rapid geographic and temporal dispersion in extraction rates,

globalization can promote resource exploitation in exporting countries. Sea urchin

exploitation, for example, has spread to various countries as a result of growing

globalization (Berkes et al. 2006). Rapid exploitation of specialized energy sources,

exploitation of virtual water (Hoekstra and Chapagain 2008), pollution, loss of

biodiversity, depletion of fish supplies, and biological invasions are all effects of

globalization (Ehrenfield 2005). Forest loss and recovery are also at risk, as is the

potential loss resulting from a combination of climatic change and economic

globalization (O'Brien and Leichenko 2000).

           In moist tropical forests, wetlands, Mediterranean plant biodiversity, and

Antarctica (Given 1990; Medail and Quezel 1997), globalization has resulted in an

alarming loss of plant and animal biodiversity (Frenot et al. 2005). Other effects include

food web simplification, homogenized landscapes, and high energy and nutrient inputs

(Western 2001), all of which reduce ecosystem services and raise economic losses in

countries that lack a coping mechanism. At a local level, decreased ecosystem

functionality of commons can result in economic and ecological losses (Randhir and

Hawes 2010). Local commons are widely relied on by developing countries for

agriculture and livestock production, fishing, hunting, fuelwood, and minor forest product

gathering (Dasgupta 1993), and their interruption could have a significant impact on local

livelihoods (Randhir and Hawes 2010).

11
           Moreover, Globalization increases the number of interconnections in socio-

ecological systems and introduces new variables that influence resilience mechanisms

(Armitage and Johnson 2006). Making cross-scale institutional links, which characterize

the globalization process, is thus necessary for social and ecological resilience (Armitage

and Johnson 2006). The globalization process might result in long-term costs (losses in

ecosystem services) that significantly outweigh the gains in situations where there are no

or inadequate institutions to control.

           To deal with new and quickly developing market conditions, resilient biophysical

capacity and adaptive socio-economic institutions are required. Some direct repercussions

of globalization include a decrease in environmental quality (Baek et al. 2009) and the

rapid extraction of forest commons (Lofdahl 2002). Increased pollution, loss of habitat

and biodiversity, and a decline in the quality of air, soil, and water resources are all

indirect effects of globalization (Vig and Axelrod 1999). To discover chances to

strengthen resilience and the adaptive ability of social and ecological systems to cope

with new stressors, it is necessary to evaluate the consequences on local commons in an

ecosystem framework.

Globalization in the banking sector is unquestionably influenced by financial

globalization. The impact of markets, economies, private enterprises, and monopolies, as

well as states on each other, is reflected in the averaging of banking risks for all parties.

As a result, monetary policy aims that are opposed may have the same good effect. The

study's goal is to establish conceptual, scientific, and methodological research areas in the

domain of banking risk diversification in the context of financial globalization.

12
GLOBALIZATION RISKS MANAGEMENT

According to Stobierski (2021), Globalization is not going away anytime soon. While

particular countries and regions may impose laws and practices that hinder globalization,

such as tariffs, globalization is here to stay. The good news is that firms and professionals

who are willing to face and prepare for the difficulties and risks of globalization have a

lot to gain. Learning how to spot opportunities and hazards associated with globalization,

whether you're a business owner, a member of executive leadership, or an employee, can

help you be more productive and add more value to the company.

The great bulk of management and organization theory literature takes a staunchly

mainstream approach to globalization and lacks a critical viewpoint base on the Banerjee

(2009), article. Articles in scholarly journals like the Journal of International Business

Studies and the Colombia Journal of World Business tend to focus on the benefits and

risks of globalization, as well as how businesses might gain a competitive advantage in a

global market. Entry tactics into emerging markets, cross-cultural marketing and

management challenges, outsourcing, technology transfer, and joint ventures are among

the topics investigated.

Conclusion

In considering the chances for development during the time period of the rise of

globalization, it is time to consider a new agenda for development. In this cogitation, the

concern for efficiency must be balanced with consideration for equity, just like how the

concern for economic growth and concern for social progress is balanced. It is also time

13
to evolve a new agreement in terms of development, in which the focus is to develop

people rather than the development of economies. The agreement must be made on a

sense of proportion that does not bring back or repeat old ideological battles in terms of

either-or choices, and on a depth of understanding which recognizes the complications

and the diversity of development. This reasoning should not be limited to the sphere of

economics. It needs to extend to the area of politics. For material democracy that creates

political accountability government for the people must be an integral part of the new

agenda and the new agenda development consensus. In such a world, decent living

conditions are guaranteed. Of course, humans and ordinary humans will be the basic

targets. Therefore, development must provide equal rights; as well as opportunities for all

men and women. And the ability to expand their freedom and exercise their own choices

for their happiness. In this process, people are participants, not beneficiaries. The

distinction between purpose and means remains important. And in pursuit,

the importance of development and public action cannot be exaggerated. It must be

an integral part of a development strategy that must not be forgotten in enthusiasm for the

market and globalization.

14
REFERENCES

Banerjee, S. B., Carter, C., & Clegg, S. (2009). Managing Globalization. In M. Alvesson,

T. Bridgman, & H. Willmott (Eds.), The Oxford Handbook of Critical Management

Studies Oxford University Press.

Retrieved from: https://doi.org/10.1093/oxfordhb/9780199595686.013.0009

Berkes, F, Hughes, T. P, Steneck, R. S, Wilson, J. A, Bellwood, D. R, Crona, B, Folke,

C, Gunderson, L. H, Leslie, H. M, Norberg, J, Nyström, M, Olsson, P, Österblom, H,

Scheffer, M and Worm, B (2009). Globalization, Roving Bandits, and Marine Resources.

Science 311(5767): 1557–1558.

Retrieved from:

https://www.thecommonsjournal.org/articles/10.18352/ijc.517/#r3

Erixon, Fredrik (2018), The Economic Benefits of Globalization for Business and

Consumers

Retrieved from: https://ecipe.org/publications/the-economic-benefits-of-

globalization-for-business-and consumers/#:~:text=Globalization%20has

%20enabled%20firms%20to,both%20through%20exports%20and%20imports.

15
Globalization (term paper). Bartleby. (2021). Retrieved March 25, 2022, from

https://www.bartleby.com/essay/Globalization-Term-Paper-PKP7C3A8JK8W

Nagashybayeva, G. (2020, April). Globalization: A resource guide: History of

globalization. Research Guides. Retrieved March 25, 2022, from

https://guides.loc.gov/globalization/history

Nayyar, D. (2006, March). Development through Globalization? Retrieved March 26,

2022, from https://www.wider.unu.edu/sites/default/files/rp2006-29.pdf

Randhir, Timothy O. (2016), Globalization impacts on local commons: multiscale

strategies for socioeconomic and ecological resilience

Retrieved from: https://www.thecommonsjournal.org/articles/10.18352/ijc.517/

RESOURCE LIBRARY (2019), Effects of Economic Globalization

Retrieved from: https://www.nationalgeographic.org/article/effects-economic-

globalization/9th-grade/#:~:text=In%20general%2C%20globalization

%20decreases%20the,a%20wider%20variety%20of%20goods.

Stobierski, Tim (2021), 6 PROS AND CONS OF GLOBALIZATION IN BUSINESS TO

CONSIDER

Retrieved from: https://online.hbs.edu/blog/post/pros-and-cons-of-globalization

Verma, S. (2017, July 1). Term paper: Globalization - definition & types: Processes:

Economics. Economics Discussion. Retrieved March 25, 2022, from

16
 https://www.economicsdiscussion.net/term-paper/globalization-term-paper/term-

paper-globalization-definition-types-processes-economics/29267

Yuzvovich, L., Knyazeva, E., Mokeeva, N., Avramenko, E., et al. — DOI

10.3844/ajassp.2016.391.399 // American Journal of Applied Sciences. — 2016. — Vol.

4. — Iss. 13. — P. 391-399.

Retrieved from: https://elar.urfu.ru/handle/10995/90194

17