GLOBALIZATION

MERITS AND DEMER-

ITS
 MERITS
OF
GLOBALIZATION
• Globalization could create more
employment opportunities.

- With fewer barriers to the import/export mar-

ket,
the cost ofproducing goods or offering services
would decline without affecting the profit mar-
gins of
companies.
• Globalization would remove
tax havens for wealthy indi-
viduals and businesses.
- Tax havens are places where taxation levies are at
low
rates. They offer foreign businesses and individuals
an
opportunity to keep their profits in local institutions.
Globalization reduces this issue because it eliminates
the administrative structures that allow the wealthy
to hide
their funds. Greater transparency here would lead to
better funding of social programs, which could re-
• Better service

- Globalization always provides us better services

through the technological advancement on our ser-
vices
• Globalization allows for better
communication

- Diversity makes us stronger as humans because it

gives
us access to more information. We get to see different
perspectives, ideas, and insights because of what
makes us different. Instead of grouping up in politi-
cally-based
tribal cultures, globalization would encourage open
lines
of communication that would help to make better
decisions on every level of society.
• Globalization could reduce
human trafficking and labor
exploitation.
- When there are fewer restrictions on travel, imports,
and exports, then there are more opportunities for
people to
find moments of success. Although the wealthy na-
tions
might see a decline through this process, those who
live
in poverty would see massive increases in their stan-
dard
of living.
• Standardization of Living

- The integration of economies as the key process of

globalization enables countries to fight against
poverty
and improve the standard of living of the people.
• Transfer of Technology

- transfer of technology throughout the globe is good

for
us. Any country can borrow the technology through
the
agreement and can implement it in their country for
their overall development. We can communicate each
other
easily from any part of the globe by using advance
technology at minimal cost, time and efforts.
• Affordable Products

- With the access to the latest technology, the coun-

tries
can provide products to its countrymen at affordable
prices. Globalization promotes competition in domes-
tic
economies and their endeavour to compete against
competition, companies reduce product price or fol-
low
penetration pricing strategy.
 DEMERITS
OF
GLOBALIZATION
• Trade Imbalance

- The balance of trade refers to the balance of values

between a country’s export and import’s goods and
services.
• Increase in Unemployment

- The Multi national corporation or company employ

machine to reduce the numbers of employees, all
these
has led to huge unemployment in those countries.The
larger the unemployment the larger the poverty.
• Destructive of Environment

- Globalization would destroy environment. In the

name of economic development.
• Increase the gap of poor and
rich

- Globalization brings benefits to the rich who are

small in number and keeps the vast majority of peo-
ple in poverty
and misery ,Those who are already rich succeed in
taking
advantage of privatisation while the poor and weak
are
doomed to suffer.
• Lack of local businesses.

- the policies permitting globalization tend to advan-

tage
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.
• Increases potential global re-
cessions.

- When many nations’ economic systems become

interdependent, the likelihood of a global recession
increases dramatically.
• Exploits cheaper labor mar-
kets.

- Globalization allows businesses to increase jobs and

economic opportunities in developing countries,
where
the cost of labor is often cheaper. However, overall
economic growth in these countries may be slow or
stagnant.
 THANK YOU
ORNIETA
SEVILLETA
DAGOL
PLATON
SAMBOG