Globalization is the process by which businesses develop international influence and starts operating on international scales. Their goods spread throughout the world leading to more interactions with different world’s cultures and governments.
Through globalization, the products can be standardized as there will be sharing of ideas among many nations. Globalization can be financial, economic, technological, political, and even cultural.
Pros of Globalization
- Widens access to goods and services
Globalization makes goods and services available to many people often at lower prices. Business people also benefit from this by having access to bigger markets hence improving the standards of living of people worldwide.
- Easy spread of technology
Good ideas about technology spread more easily when there is globalization. For instance, the issue of mobile banking is really spread worldwide which beneficial to all members that use it.
- Cultural awareness
Globalization has made people be aware of different cultures which brings respect among members of different cultures. When people mingle with others from different nations they learn a lot of the culture which intern contributes to peace among different cultures.
- Improves living standards of people
As people travel to different nations to seek employment, it makes them start to earn a living hence improving their standards of living.
- Production of high-quality goods
People share ideas about the production of different goods which may end up the production of goods that are if high quality. This will widen the market as the consumers will not be disappointed at a point with the product which affects positively the income of the company.
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Cons of Globalization
- May lead to loss of culture
Globalization may make other people lose their culture as they will really be moved to other cultures. This will lead to people embracing one culture which in the end it will affect the generation to come.
- Overemphasis on multinational corporations
This has led to a reduction in state sovereignty and the ability of citizens to hold their leaders accountable for conditions in their countries.
- Cheaper labor
This has been caused by employing workers from developing countries because they offer cheap labor which in the long run they are being misused.
- Leads to the spread of diseases
Some of the diseases are mainly found in specific nations but due to globalization, it has made the diseases spread worldwide.
- Failure in delivering some services
Labor rights, human rights, and environmental protection were some of the fields that globalization was to improve. In practice, the spread has been slow. That is why we still have the practice of racism that makes people from developing countries to still provide cheap labor.
Read More: Pros and Cons of Mixed Economy
Globalization has really benefited states like the United States but the developing countries have not really gained from the deal. A lot still needs to be done for the aims to be achieved in developing countries. Anyway, there are a few benefits that developing countries have gained from the deal.