What are the advantages and disadvantages of globalization?

The advantages of globalization include free trade, better communication between nations, and increased access to technology, media, education, healthcare, and consumer goods. The disadvantages of globalization include the potential exploitation of developing countries, cultural homogenization, and the possibility of adverse effects on local economies and the environment.

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The globalization of the world economy has led to numerous positive and negative effects. It has brought jobs and industry to parts of the world where unemployment used to be high. However, it also has led international companies to sometimes exploit cheap labor and circumvent safety practices in the workplace...

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The globalization of the world economy has led to numerous positive and negative effects. It has brought jobs and industry to parts of the world where unemployment used to be high. However, it also has led international companies to sometimes exploit cheap labor and circumvent safety practices in the workplace by employing workers in places without robust labor protections.

Globalization has led to increased economic competition between many countries which has helped keep prices low for consumers. Yet, this competition has the potential to lead to conflicts as nations compete over limited resources. Countries also sometimes manipulate their currencies in order to take advantage of price differences. This practice often offsets any advantage that this type of competition may give to the consumer.

The type of international communication that globalization fosters has led to new connections and information sharing at levels never before seen. As a result, people have become more tolerant of cultural and national differences in many cases. However, many people worry that this is leading to the erosion of endemic cultural practices and ethnic identities in many places.

The cheap consumer goods that have resulted from globalization have meant that the purchasing power and standard of living of the middle class has increased in many parts of the world. At the same time, the outsourcing of jobs overseas has also led to the shrinking of the middle class in many developed countries.

Multi-national economies have led to an influx of revenue where it may not have previously been seen. Yet, this practice has also allowed corporations to circumvent paying taxes by taking advantage of offshore tax havens.

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Globalization is the practice of trading across national and political boundaries. The opposite of globalization is protectionism, which seeks to protect domestic businesses by imposing trade barriers on foreign competition.

There are several great benefits of globalization. For starters, it gives poorer countries an opportunity to become involved in the production of goods that they might not otherwise have. As countries seek a cheaper means of producing goods, they often look to less industrialized societies, which can lower production costs—and companies can therefore pass on those savings to consumers. Therefore, countries with few resources can become an appealing option for business opportunities. This can therefore increase the wealth and living standards of those living in traditionally less industrialized societies, giving them a means of employment and income that may not otherwise exist. Globalization also brings people from various cultures together, giving them a shared interest in common goals.

Yet there are also significant disadvantages of globalization. While less industrialized societies are often the focal point of new business efforts, workers are often paid wages that are not fair, leading to the exploitation of poorer societies. While larger societies benefit from substantial economic growth, poorer countries never see this same economic boom. Some also say that globalization fairly forces the values and culture of larger societies onto smaller ones in ways that are not appreciated and could even be harmful. Globalization is also seen as harmful to local economies, which often cannot compete with prices established through a global market. This decreases competition, which over time can actually increase market prices. Globalization also shifts jobs away from local economies in favor of producing goods cheaper in other countries; this means that local economies may suffer as unemployment rates increase.

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To answer this question, we first need to define what globalization is. In simple terms, globalization refers to the movement of products and information across international borders and cultures. For example, it is far more likely today to find American and Asian products in Africa than it was 50 years ago; this is the result of globalization.

There are many advantages to doing business in the age of globalization. By moving their manufacturing operations abroad, companies can reduce their labor costs, and thanks to the ability to get raw materials from anywhere in the world, these can often be obtained more affordably. In a social context, globalization allows for greater levels of intercultural understanding, as ideas, works of art and literature are spread between nations.

On the down side, the advantages of globalization are not evenly spread, and it results in some people obtaining wealth while others descend into poverty. For example, textile industries around the world have suffered huge losses through not being able to complete with the prices that can be offered in China. In addition, countries determined to glean maximum economic benefit from globalization could be tempted to increase productivity by being too relaxed in terms of health and safety laws. As big brands become increasingly entrenched around the world, small local businesses often pay the price, being unable to compete with companies big enough to take advantage of the economies of scale and scope made possible by globalization.

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Some advantages of globalization are as follows:

It has helped to lift millions of people out of poverty in the developing world. This is because globalization works best in countries that are labor-rich but capital-poor.

It broadens access to goods and services. Thanks to globalization, far more goods and services are now more widely available to more people at a much lower price.

Disadvantages of globalization:

Workers in developed countries can lose out to countries with cheap labor and weak regulation. All too often, this encourages a race to the bottom in terms of labor standards as well as environmental regulation.

Globalization puts more power in the hands of big corporations. This often comes at the expense of state sovereignty and seriously impairs the ability of citizens to hold corporations to account.

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Advantages of globalization:

  • Globalization reduces international poverty
  • Globalization contributes to the spread of technology
  • Globalization adds to the profitability of companies and corporations
  • Globalization builds stronger trade ties and dependencies between nations

Disadvantages of globalization:

  • Globalization can be a major motivation for companies to move overseas where they can exploit lax labor laws and low environmental standards
  • Globalization can homogenizes the world culture, both positively and negatively
  • Globalization can destroys entire industries in developed countries (e.g., US automakers, textile manufacturing)
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Globalization is the trend of global cultures getting closer and melding more as technology and travel allow people to experience diverse cultures more easily. There are obvious benefits to this, but there are some additional drawbacks.

On the positive side, globalization helps with enrichment and cultural development. People are able to see and experience different cultures, and this enriches their lives and helps them to learn and grow. This benefits society at large, as diverse experiences and perspectives offer unique ideas, promote solving global problems, and help to develop a stronger global culture and an inclusive environment.

Globalization is also beneficial for businesses because they are able to sell and work in a larger market than previously. They can also draw their workforce from a larger base than if they were limited to one geographic area. However, the ability to draw their workforce from economically disadvantaged populations often leads to exploitation of workers (e.g., underpaying them, providing dangerous working conditions, promoting child labor, etc.).

As a negative, it does expose people to the downsides of culture that can be detrimental. Globalization can lead to racism, terror organizations, and other threats. Additionally, one minor negative is simple dissatisfaction. People will get frustrated with their own culture or country because they have only seen the positive aspects of another culture through technology or tourism. While there may be benefits they’d appreciate more in the other culture, they may be blind to its negative aspects and are therefore seeing an ideal society in their mind that makes them frustrated with their own culture.

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Gloablization is such a complex topic that it is difficult to reduce it to a few advantages and disadvantages. It impacts the way business is done on a global scale and can change the landscape of businesses both large and small.

One advantage of globalization is that it offers low-cost alternatives to companies and individuals alike. Similar products are available throughout the world, and they are produced more economically in places like China, India, and Mexico than in America or other similar countries.

A disadvantage of globalization is that it can bolster large companies like Amazon and be detrimental to small, local businesses, due to the resources and reach of that larger company.

Another advantage is that it allows you to reach more customers. A small company, if they are able to get into the market, can effectively do business throughout the world due to the internet and international manufacturing and service options.

A final disadvantage is that it complicates standards and quality requirements. Different nations have different requirements, and it is very difficult to get all of these matched up properly.

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The major advantage of globalization is that it helps cause overall economic growth around the world.  Globalization brings new and better jobs to countries such as China and India that were once on the periphery of the world economy.  As it creates new jobs in those countries, it brings goods and services to the developed world at lower prices.

The major disadvantage is that it harms specific economic sectors in various countries.  Typically, low-skilled workers in rich countries suffer from foreign competition.  So do inefficient farmers in developing countries.  Even as globalization helps people on average, there are some who are hurt as they come to be outcompeted by foreigners.

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This is a great question that can be answered in many different ways. Let me list a few positives and then list a few negatives.

The positive aspects of globalization are as follows. First, with globalization, you are dealing with a global market. So, companies not only have a domestic market, but an international one. This can be a huge benefit in terms of sales and expansion. Another benefit of globalization is that you can draw the best in the world to your company. Hence, your talent pool is the world. With this you are also able to outsource to save more money.

The negative points of globalization is that you might hurt your own economy. For example, if you outsource all your jobs, your company might do well, but the local economy will not. Second, with a global economy, we tend to spend much more money on fuel, which can be hazardous to the environment.

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