Positive impacts of globalization analysis

Franko, K. (2019).has defined globalization as the process involving interaction and integration among people, companies and even governments. This kind of interaction is done on an international scale. Economists have linked globalization to the expansion and integration of both local and national economies to the impacts brought about by globalization. Globalization as a process has been possible due to the availability of transport and communication infrastructure that has consequently resulted in an increase in global interactions in terms of international trade, exchange of ideas and even social interactions. Globalization as a process has been largely linked to the development of economies however conflicts and diplomacy are also part and parcel of the globalization process.

Positive impacts of globalization

Increase in the scope of competition

Globalization has made it possible to cross the international borders and consequently engage in operations in other countries, in the event that several companies are competing towards the same customers, it creates an advantageous conditions for the consumers since the prices of the goods are bound to be regulated, quality goods and services are likely to be offered. A drop in prices and an increase in the quality of the goods and services offered is an enjoyable atmosphere for the consumers. Steger, M. B. (2017) states that globalization has gone a long way in reducing monopoly, companies have not able to create monopolies within their areas of operations because of the availability of other companies. This has helped in price regulation as manufacturers and suppliers in the market have to continuously struggle to find ways of maintaining a share of the market. Likewise, customers are presented with a wide variety of goods to choose from.

Globalization and international trade

Globalization has had positive impacts on international trade and the national economic growth of the countries. It is evident that globalization has advocated for free trade areas where countries open up their borders for free trade, in this regard; the liberalization has helped in removing all trade barriers consequently leading to an increase in unrestricted forces of demand and supply, the forces of demand and supply correspond to factors of production thus increased efficiency in production by production. (Mubiru  2003). Due to unrestricted trade, the economies of developing countries have witnessed increased growth. The growth has been attributed to the removal of trade restrictions allowing partial relocation of manufacturing plants from developed areas to developing countries. Mubiru (2003) states that the resultant effects of the relocation are the creation of jobs in the developing country and the import of new technologies to the country.

Globalization and worldwide development

Globalization has been adversely associated with global development, this is because for one it has created and cleared the way for the development to take place. The presence of airplanes has enabled movements of service providers from one country to another. Another advantage of globalization to global development can be assessed using one of the objectives of globalization which is to reduce the poverty levels in developing countries and raising of the standards of living of the people, this has been made possible through the grants and aids that are sent from developed countries to the developing countries to help in alleviating and raising the standards of living of the people. The funds can be used to improve on sectors such as education, health, and infrastructure. When all these are developed, the resultant effect is an improvement in the standards of living of the people. Kolodko, G. W. (2018).

With globalization and international interaction, the developing countries can acquire and use advanced technologies without having to undergo the stress of inventing new technologies. With globalization, more jobs have been created, consequently people have also gained the opportunity to be trained and become skilled professionals, this has been possible in situations where a manufacturer opens up a branch in another country through the program of partial relocation brought about by globalization, and plenty of jobs are created to the locals. Training opportunities are availed to people lacking the required qualifications; if this happens there is bound to be an increase in the National GDP. Kolodko, G. W. (2018).

Globalization and communication

Globalization through the media has helped in drawing people’s attention towards those parts of the world where there is an increase in human rights violation for the benefits of the rich and the powerful, likewise information about disasters in other parts of the world is able to reach donors in real-time for assistance and support to those affected. Regarding businesses, various small and medium scale enterprises have been able to prosper with the help of globalization due to increased media coverage. The use of the internet has enabled them to acquire new clients and market their products and services to a larger consumer base via the internet. Besides, the improvements and innovations in transport and technology have enabled these businesses to successfully land in the international market. Sorrells, K. (2015).

Globalization and interdependence

Globalization has ensured a beneficial relationship between developed countries and developing countries. People from developing countries can acquire employment opportunities in developed countries whereas the resources in the developing countries can be taken for refining and further processing in the developed countries.

The wealth created from these resources and that is generated by the employed individuals can be used for the economic growth of the developing countries. Lechner & Boli (2020)

Negative impacts of globalization

Globalization has also been criticized for contributing to some of the negative aspects within the society

Globalization and unemployment

Although the proponents of globalization have argued that it creates jobs for people living in the developing nations, however in most situations, this is untrue. As a result of the outsourcing of labor to the developing countries, the citizens in those countries are left unemployed thus leading to an increase in the national unemployment rates. The outsourcing freedom brought by globalization has worked to ensure that the local host countries where international manufacturers have set up manufacturing plants have been completely deprived of the chance to gain employment in those industries. For this reason, a lot of people have remained jobless without the opportunities which they rightfully deserve. This consequently affects the national GDP since most people have continued to remain unemployed. Koster & twitter (2016)

Globalization and culture

Although globalization has been widely praised for bringing people of different cultures together, it has also been blamed for loss in tradition and values. Globalization has subsequently resulted in the loss of some languages in the developing nations. Cronin (2003) has raised a concern about the way languages are becoming extinct and argues that if something is not done to help them regulate the complex process of globalization, then the trend is predicted to continue for some time in the future. Cronin, A. K. (2003).

The increased interaction between western cultures and the local cultures has resulted in a mix of cultures, successfully deleting the original local cultures. The increase in internet communication among the youths has led to the spread of propaganda hence leading them to inhibit behaviors and habits that are not in line with their societal norms, extremists and terrorist activities that have been linked to globalization. In such countries, development is slightly suppressed due to anti-development ideas.

Globalization and environmental degradation in developing countries

The freedom associated with free international trade has been linked to positive impacts on the development of the countries, however, there are also negative impacts associated with it. In developed countries where there are strict rules regarding environmental protection, the developed nations have always been found to willfully dispose of their products in the developing countries. These products may be considered environmentally harmful products, they may consider the developing nations where the environmental rules might not be as strict as they are in developed countries.  Increased trade has been found to harm natural resources such as trees; overexploitation of these resources may result in negative impacts of the environment. An increase in transport activities has a direct correlation to the use of fossil fuels which ultimately results in increased air pollution and consequently accelerates climate change which has become a serious threat to humanity. Yúdice, G. (2018

Globalization and increased unfavorable competition

The freedom to trade in other countries as advocated for by globalization has not only created positive impacts in those but also resulted in creating unfavorable competition within the markets.

This unfavorable competition has resulted into fluctuation of prices with some developed countries being forced to reduce the prices of the goods they have so as to remain relevant in the market against countries such as China which are able to produce the same commodities at a half or even quarter the price, this kind of competition results into loss of profits as companies always strive to remain competitive. This decision to reduce prices can as well impede the growth of a country’s economy.

Globalization and the global economic decision making

Because globalization is meant to bring countries together and foster economic development, the underdeveloped and developing countries often get suppressed by economically stable countries and are always not allowed to take part in the global; economic decision-making forums, even if they do, their opinions are never taken into consideration.

Globalization and diseases

This aspect of globalization concerning diseases can be discussed in the following ways. Globalization has influenced the spread of infectious diseases. The ability to control these diseases or rather eradicate them has proved to be difficult for developing countries.  The enhancements in technological capabilities globally have led to increased emissions resulting in global warming, this has, in turn, favored the breeding of disease vectors, for example, the malaria vector has been found to do well in warm regions. Other human behaviors associated with western cultures such as bathing in open water bodies have led to the spread of bilharzia larvae. Saker et al (2004)

It is important to note that over the years, the tremendous increase in international trade has led to the introduction of western dietary habits in most of the developing countries; the western foodstuffs have consequently gained preference for the natural local foodstuffs.

Noting that these foods are junk and contain high cholesterol content thus leading to the development and spread of western diseases, subsequently, these diseases are becoming prevalent in the developing countries. The introduction of western culture and lifestyles through globalization has led to the drastic loss of culturally accepted values subsequently leading to increased looseness and promiscuity among the youths and the adults. This has led to an increase in the number of people living with HIV and AIDS and the long-term effects on the economy are felt in some countries. Saker et al (2004)

 

References

Cronin, A. K. (2003). Behind the curve: Globalization and international terrorism. International Security, 27(3), 30-58.

Franko, K. (2019). Globalization and crime. SAGE Publications Limited.

Kolodko, G. W. (2018). Emerging market economies: Globalization and development. Routledge.

Koster, F., & Wittek, R. (2016). Competition and constraint: Economic globalization and human resource practices in 23 European countries. Employee Relations, 38(2), 286-303.

Lechner, F. J., & Boli, J. (2020). The globalization reader. John Wiley & Sons.

Mubiru, E. (2003). The effects of globalization on trade A special focus on rural farmers in Uganda. Report to World Vision International.

Saker, L., Lee, K., Cannito, B., Gilmore, A., & Campbell-Lendrum, D. H. (2004). Globalization and infectious diseases: a review of the linkages (No. TDR/STR/SEB/ST/04.2). Geneva: World Health Organization.

Sorrells, K. (2015). Intercultural communication: Globalization and social justice. Sage publications.

Steger, M. B. (2017). Globalization: A very short introduction (Vol. 86). Oxford University Press.

Yúdice, G. (2018). The globalization of culture and the new civil society. In Cultures of Politics Politics of Cultures: Re-Visioning Latin American Social Movements (pp. 353-379). Taylor and Francis.

 


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