There are many pros and cons to globalization that have been identified by at least some people. Let us look at some of the more important of these.
- It makes the world as a whole better off. Economists believe that more trade brings about greater total production in the world.
- It has helped many poor countries economically. China is the greatest example of this. Globalization allows poor countries to get richer by producing and exporting to rich countries.
- It helps countries progress in non-economic ways. Globalization puts more pressure on countries to have respect for human rights and to do things like trying to help their poor.
- It gives consumers in the rich world cheaper goods to buy.
- It hurts workers in rich countries. Workers in countries like the US lose their jobs as their companies go to poorer countries so they can find cheaper workers.
- It hurts farmers in poor countries. These people are not efficient enough to compete with the large farms of the rich world so they lose market share.
- It destroys cultures and languages. As globalization increases, cultures become more homogeneous. Local film industries lose out as everyone watches Hollywood, Bollywood, or Hong Kong movies. Local music dies out as people listen to Western music or K-Pop. Small languages die as people use English and other large languages more.
In these ways, we can see that people argue that globalization has both good and bad effects. Please follow the link below for a longer discussion of this issue.
Globalization created such a robust global network such that countries and corporates around the world exchanged ideas and resources to the betterment of their economies. On the other hand, it also came with its repercussions that forced both powerful and emerging economies to address its effects.
- Robust Markets: One of the many things that came with globalization was outsourcing where different countries were able to leverage on their operational expenses more efficiently. So if a state spent more to produce a particular product it was now able to cut on the production costs by outsourcing cheaper labor and raw materials.
- Creation of Stiffer Competition: There was a time when countries depended on specific nations to provide them with particular materials but with globalization, that changed. Today, states are free to trade with countries of their choice depending on how much they are willing to spend.
- Economic Security: Countries are no longer subject to the harsh economic predicaments of a closed economy. States have become free to exchange goods and services with nations that favor their GDP.
- Equitable Wealth Distribution: Globalization means that currencies can easily move around ensuring better standards of living and narrower wealth gaps.
- Expansion of Criminal Networks: Globalization provided a better platform for criminal networks to grow. In this case, terrorism networks have become a nuisance to global security as a result of technological advancements on communication mediums.
- Exposure to Substandard Products: The positive side of globalization was that people could now access products at a cheaper price. However, this also meant that consumers were settling for lower quality products that endangered their well-being in the long run.