Advantages and Disadvantages of Globalization
countries, and is a matter of concern, especially
ADVANTAGES
Peaceful Relations
 Most of the countries have resorted to trade
relations with each other in order to boost their
economy, leaving behind any bitter past
experiences if any
Employment
 Considered as one of the most crucial
advantages, globalization has led to the
generation of numerous employment
opportunities. Companies are moving towards
the developing countries to acquire labor force.
Free Trade
 Free trade is a policy in which a country does
not levy taxes, duties, subsidies or quota on the
import/export of goods and services from other
countries. There are countries which resolved to
free trade in specific regions. This allows
consumers to buy goods and services,
comparatively at a lower cost
Makes the World a Smaller Place
 Every single information is easily accessible
from almost every corner of the world.
Circulation of information is no longer a tedious
task and can happen in seconds. The internet has
significantly affected the global economy,
thereby providing direct access to information
and products.
 “Global village”
 Communications technology as “shrinking” our
world
 The Internet did not exist in 1982, but in 2006 it
comprised 439 million servers connecting
people from around the world through e-mail,
file transfers, and websites.
Improves Travel and Tourism
 Globalization has promoted tourism to great
heights. International trade among different
countries also helps in increasing the number of
tourists that visit different places around the
world.
Cultural Diversity
 Increased movement of labor leads to an
increase in the spread of different cultural ideas.
DISADVANTAGES
Health Issues
 Globalization has given rise to more health risks
and presents new threats and challenges for
epidemics.
 The dawn of HIV/AIDS. Having its origin in the
wilderness of Africa, the virus has spread like
wildfire throughout the globe in no time.
 Food items are also transported to various
in case of perishable items
Loss of Culture
 With large number of people moving into and
out of a country, the culture takes a backseat.
People may adapt to the culture of the resident
country. They tend to follow the foreign culture
more, forgetting their own roots. This can give
rise to cultural conflicts
 We associate ourselves with global trends
- FOODS
- MUSIC
- ENGLISH LANGUAGE
- CARTOON CHARACTER, KPOP, INT’L
SINGER
- PLAYING ONLINE GAMES
Environmental Degradation
 The industrial revolution has changed the
outlook of the economy. Industries are using
natural resources by means of mining, drilling,
etc. which puts a burden on the environment.
Uneven Wealth Distribution
 It is said that the rich are getting richer while
poor are getting poorer
HISTORY OF GLOBALIZATION
When did Economic Globalization start?
History of Economic Globalization
 (Grills and Thompson) globalization began since
Homo sapiens began from migrating from the
African continent to populate the rest of the world.
 (Frank and Grills) - Silk Road (Asia, Europe, Africa)
the best example for archaic globalization 5,000 years
ago.
 Adam Smith considered the discovery of America by
Christopher Columbus in 1492 and the discovery of
the direct sea route to India by Vasco da Gama in
1498 as the two (2) greatest achievements of human
history
20th century:
 The “golden age of globalization because of:
 Transportation revolution
 Free trade
 Financial and economic stability
Transportation Revolution
1. Canals, steamboats, railroads
2. Turnpikes (ex: National Road)
3. Steamboats
4. Canals
5. Railroads