Advantages and Disadvantages of Globalization - Essay Example

Advantages and Disadvantages of Globalization Introduction Globalization is a trend towards economic union of the countries. Different countries jointogether by adopting more or less similar forms of education, society, and politics. Tabb (1999, p.1) asserts, “Globalizations refers to the process of reducing barriers between countries and encouraging closer economic, political, and social interaction”. It is a process of creating or developing integration among people from different parts of the world. Globalization has made significant impacts on cultural, economic, political, and societal development of the world. Robinson (2008, p.49) asserts, “Globalization is characterized by related, contingent, and unequal transformations”. Corporations and multinational organizations play a crucial role in shaping the economy of the world. Mittelman (2000, p.4) states, “Globalization is not a single, unified phenomenon, but a syndrome of processes and activities”. In today’s world, companies not only carry out their operations in their home countries, but also they have their branches in other countries of the world. It has resulted in sapping the foundations of national economies and also it has successfully unleashed the sub-politics on a quite navel scale. Beck (2000, p.2) asserts, “Globalization makes possible things which, though perhaps always there, remained hidden during the stage of the welfare-democratic taming of capitalism”. Some of the main advantages of globalization include reduction of poverty, awareness of latest technological advancements, stability in the world’s peace, and rise in living standards of people of poor countries. Whereas some points that go against globalization include doubts about effects of outsourcing, increased number of loafer, mixing up of cultures, and difficulty in industrial competition. Advantages of Globalization There are a lot of advantages associated with globalization. Let us discuss some of them in detail: 1. Improvement in the living standards and Employment Level Living standards of people has increased over the last 20 to 30 years. Technology has gain lot of advancements due to which people have brought in significant changes to their lives in order to make their lives easier. Without globalization it would have been impossible for a country to introduce technological advancements to other countries. If we take example of third-world countries, it is evident from the fact that 20 to 30 years ago, the living standard of people belonging to third-world countries was pretty ordinary and the number of jobs available for the people was very less. But when the multinational companies belonging to Europe and America started to operate in those countries, jobs were created that decreased the level of unemployment. Local people got those jobs and stated to improve their living standards. 2. Internet Facility One of the greatest advantages of globalization is the Internet. Almost two decades ago, people had to wait for their letters for a long time because there was no internet facility available to them. Now people do not have to wait for their letters for long because emails has almost replaced the letters and people now exchange their emails through internet in just a few seconds. Had there been no globalization, it would have taken a long time to adopt the use of internet. Not only emails or communication facility, internet also acts as the source for the people to get information and awareness of every field of life. People living in the under-developed countries are now aware of every thing including various international issues and technological advancements. 3. Freedom and Democracy Talking about globalization advantages, freedom and democracy are two of the main advantages related to globalization. Globalization has made it a lot easier for the people to share political knowledge with one another. It is evident from the fact that ultimate goal of all countries is to establish peace in the world. All countries are now linked to one another and there exist some organizations such as United Nation Organization which are responsible for maintaining peace in the world. All countries of the world are bound to follow the rules and regulations set by these organizations. 4. Rise in Economy Rise in the level of economy is also one of the main advantages of globalization. The level of economy of underdeveloped countries rises when companies from other countries start to operate in underdeveloped countries. Evidences reveal the fact that when foreign investment comes in an underdeveloped country, it not only creates job opportunities for the people of that country but also results in improving the economy of that country. Globalization promotes economic relations among different nations. Foreign investments, trade development, and giving loans to poor countries are some of the major examples of economic aspect of globalization. 5. Increased Competitions Globalization also results in increased number of competitions among different nations of the world. These competitions include sports competitions, debates competitions, technological competitions, and many other forms of competition. Olympics and soccer competitions are examples of sports competitions among various nations. Soccer County league is a good example of sports aspect of globalization. In soccer counties, players from different countries are selected to form a single team in order to compete with other teams having players from all over the world. This selection of players from different nations is also a perfect example of social globalization in which players with different cultural background positively interact with each other in order to achieve the goal of winning a match. The competitions result in increased level of interaction among the people from different societies and cultures. If we talk about technological competitions, we can say that they are also an important aspect of globalization because they result in the development of finest technologies. Software development is also a technological aspect of globalization as software made by the developers of one nation is used by the people all over the world. Disadvantages of Globalization As globalization has a lot of significant advantages, there are also some disadvantages associated with globalization. Let us discuss some of them in detail: 1. Negative Aspects of Outsourcing Outsourcing means transferring a business function or product’s manufacturing process to a third party or a company in order to get the process completed by the company which is specialized in that specific business process. When companies see that they have not got any high skilled labor regarding a specific business operation, they outsource that business operation to those companies which are highly skilled in those processes. Outsourcing is also one of the major aspects of globalization as different companies from different countries work in collaboration with each other. The critics of globalization think that outsourcing of business processes result in decreasing the job opportunities in a country in which the company resides. They think that outsourcing seizes the job rights of the people belonging to the home country as the jobs are transferred to some other country. They are right in a sense that number of jobs for the local people gets decreased. This disadvantage can be eliminated by providing the local people with modern and technical education. When the local people will get educated and skilled, there will be no need of getting the business processes completed by the people of other countries which will result in increasing the rate of employment for the local people. 2. Increased Number of Loafer One of the major disadvantages of globalization is increased number of unemployment. It is a fact that technology, though it is very beneficial for the economic development, has resulted in reducing the number of jobs available to the manpower. It is due to globalization that every new technology gets available to all countries of the world in a very short time. But it is also evident that adoption of a new technology or machines by a company results in increasing the level of unemployment in the country. It is because machines are much more efficient and task-oriented as compared to humans, and companies prefer to use latest machines in order to increase the level of production. So, increased number of loafer is one of the most significant disadvantages of globalization. This issue can be solved by welcoming the foreign investment in a country because foreign investment in industrial sector results in creation of job opportunities for people. 3. Cultures are Getting Mixed Up Another disadvantage of globalization is that cultures of different nations are getting mixed up with the cultures of other countries. In today’s world, the cultures of those nations are getting dominant in the world whose are economically stable as compared to underdeveloped countries. This dominance results in destroying the ethical and social aspects of smaller cultures. For example, people from underdeveloped countries go to economically sound countries in order to find employments. They live in those countries for a long period and with the passage of time they start to adopt the culture of foreign countries. Thus their own culture gets mixed up with other cultures. So, people living in some other country should try to maintain their own social and cultural values in order to save their culture from getting mixed with any other dominant culture. Conclusion Summing it up, it can be said that globalization has truly made significant impacts on cultural, economic, political, and societal advancements of the world. Globalization has not only resulted in improving the economic strength of the under-developed countries but also it has greatly contributed in strengthening the friendly ties and increasing business relations between the countries. A lot of social and economic advantages are associated with globalization. But there are also some disadvantages which can be overcome by maintaining the real spirit of globalization intact through keeping brotherly relations with other countries. References Beck, U., 2000. What Is Globalization?. Malden: Blackwell Publishing, Inc. Mittelman, J., 2000. The Globalization Syndrome: Transformation and Resistance. New Jersey: Princeton University Press. Robinson, W., 2008. Latin America and Global Capitalism: A Critical Globalization Perspective. Maryland: The John Hopkins University Press. Tabb, W., 1999. Progressive Globalism: Challenging the Audacity of Capital. Monthly Review, 50(9), pp.1-2. Read More