Globalisation: Strength and Weaknesses - Essay Example

World War I & II was the central point that proposed the idea of globalization. The World Wars adversely affected national economies. Based on numerous studies conducted, economists realized that the concept of globalization would contribute to rapid economic restructuring. In addition to the economic benefits, nations could improve their political as well technological relations globally.

Strengths According to Devetak and Hughes (34), globalization connects nations through a global network, and it assists a nation to get access to foreign markets and customers. Sometimes, an organization can attain more benefits from foreign markets than from domestic markets since the offshore country may provide better business conditions. The favorable conditions include cheap raw materials and labor, liberal government laws, and a large number of potential customers.

The removal of trade barriers promoted import and export activities by which a government acquires foreign investments. The emergence of a global financial market can be directly attributed to the concept of globalization, which assisted borrowers to get better access to external financing. The increased volume of national and international trade transactions will probably boost the rapid economic development of a country. The economic development of a country may raise the standard of living of its citizens.

Moreover, every nation gets access to highly developed technologies so that organizations can take advantage of these improved technologies to enter the next phase of growth. Hence, technological improvement and increased productivity are some of the positive outcomes of globalization. As per statistical data, “every day more than $1.5 trillion is now swapped in the world’s currency markets and around one-fifth of products and services generated per year are bought and sold” (Benefits of Globalisation).

Global interconnectedness helps nations to attract more and more investors and thereby complete their capital accumulation process successfully. Potential investors are invaluable assets of every organization as these investors can raise additional capital in times of unexpected contingencies. The buyer group also acquires benefits from world trade as they get better selection options through which a buyer can purchase quality goods at lower prices. Another fascinating feature of globalization is that it can keep the inflation level lower.

This feature greatly aids governments to trim down public sector spending and minimize troubles associated with a higher inflation level. The increased global trade creates a lot of employment opportunities across the globe and thus it effectively contributes to each nation’s economy. Globalization brought some excellent economical results in the 1980s and it can be attributed to increased global trade activities. In 1986, commerce as a percentage of gross world product has risen from 15% to 27%; in addition, the globalization process brought revolutionary developments in the number of mobile phone subscribers and internet users during the last few decades (Benefits of Globalization).