Pros and Cons of Globalization

GLOBALIZATION

Definition: process of interaction and integration among the people, companies and governments of different nations, a process driven by international trade and investment and aided by information technology.

PROS

CONS

Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. An open economy spurs innovation with fresh ideas from abroad. Numerous employment opportunities Free movement of capital Provide wider choices Improves quality Boosts economy Spread knowledge Technological development sharing of information Increase of demand of products increases rate of production Promotes global economic growth, creates jobs, makes companies more competitive, and lowers prices for consumers Free trade country does not levy taxes, duties, subsidies or quota on the import or export of goods

Many people from developed nations are losing jobs and that is posing a problem for them since the companies are outsourcing work to developing countries since the cost of labor is low and profits the company considerably. Loss of cultural identity Rise to more health risks and presents new threats and challenges for epidemics HIV / AIDS Uneven wealth distribution Promotes traits of commercialism Affects local markets It is not working for the majority of the world UN Development Program reports that the richest 20 percent of the world's population consume 86% of the world's resources, while the poorest 80 percent consume just 14%.

 

     Globalization is deeply controversial. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods and ideas that constitute the current wave of globalization. To find the right balance between benefits and costs associated with globalization, citizens of all nations need to understand how globalization works and the policy choices facing them and their societies.