Globalization is one of the most important political topics of the 21st century. You might have heard about this term globalization in a political debate. As the world grows more rapidly through the internet, globalization is getting more important and controversial.
Do you what is meant by globalization? Globalization is the process of changing from isolated world to an integrated one. Moreover, it can also be summed up as a long term change towards economics, politics, idea and cultural values.
In many different ways, globalization has been taking place for centuries. Now globalization is mainly possible because of advances in technology. Most people praise globalization, and some blame it for job loss and other ills.
Let’s have a look at some of the pros and cons of globalization.
Table of Contents
Pros of Globalization:
- Access to goods and services
- Lift people out of poverty
- Increases cultural awareness
- The spread of information technology with globalization
- Encourages free trade
- More trade brings more job opportunities
1. Access to Goods and Services:
It’s difficult to argue at this point that globalization makes more goods and services available to a large number of people, often at relatively low prices. On the other hand, if you have disposable income and you are purchasing a product that comes from abroad, then you are benefiting from globalization to some extent.
The proprietors of business also benefit from having access to a bigger market for their services and goods.
2. Lift People out of Poverty:
The argument that globalization has helped people in developing most of the countries out of poverty is somehow controversial. Because the opinions differ as to the quantity and the quality of the jobs being offered by globalization.
But the fact is that globalization has increased job opportunities in capital scarce, labour-rich countries that means developing countries.
3. Increases Cultural Awareness:
Many globalization defenders claim that it has increased cross-cultural understanding and sharing. A neutral globalized society boosts up the rate at which people are exposed to the culture, attitudes and values of people in other countries. This kind of exposure can inspire artists and strengthen ties between nations.
4. The Spread of Information Technology with Globalization:
Culture and arts are not the only things that spread more efficiently in a globalized society, but the same goes for technology and information areas. Globalization has left its impact on the spread of information technology.
However, civil society groups can look to other countries for inspiration, and good ideas can spread more rapidly.
5. Encourages Free Trade:
Consumers can buy products from anywhere in the world at reduced rates without any borders in place. But there can be few barriers in a place like tariffs, sales, taxes or subsidies because there would not be nations that could add restrictions. Thus with real globalization, free trade will be encouraged.
6. Elimination of Currency Manipulation:
Many countries nowadays manipulate their currencies to benefit their local economy. Even the three primary currencies of the world such as the euro, dollar and pound do this.
With strong globalization, countries no longer have to manipulate their currencies to obtain price advantages; they are consumers who can benefit from the income.
7. Opens up Free Communication:
Removing borders allow people to communicate with one another more freely. In this way, there is an even greater intermingling of cultures that will enable people to have a higher perspective about the world.
There is no doubt when we have access to more information, and we can take better decisions. Instead of considering people from another country alien, we will make them a normal human. Now it becomes a place that is more tolerant and open.
Cons of Globalization:
Now we will take a glance at some disadvantages of globalization.
- Fail to deliver desired gains in human rights, labour rights and environment protection
- May contribute towards cultural homogeneity
- Put more power in the hands of various multinational corporations
- Workers of developed countries may lose out to workers in countries having cheap labour
1. Fail to Contribute Towards Desired Gains:
Globalization serves as an opportunity to spread environmentalism and labour rights throughout the world. But this spread has been relatively slow and imperfect. Some people argue that globalization has increased the flow of goods, services and capital.
But still, there are plenty of tax havens which means that much of the value added by globalization is not captured and redistributed by governments.
2. May Contribute Towards Cultural Homogeneity:
If people tastes converge, globalization may lead to more cultural homogeneity. If someone of us wears jeans, watch Hollywood movies and learns English, we may lose our precious cultural practices and languages. Even some critics say to this extent that globalization is creating a monoculture.
3. Puts More Power in the Hands of Multinational Corporations:
Many critics say that increasing trends of globalization has empowered multinational corporations at the expense of governments and citizens. This, in turn, reduces state sovereignty and make citizens able to hold their leaders accountable for situations in their countries.
It is one of another reason that labour and environmental protections would be harder to enforce than many of the critics belonging to globalization would like.
4. Workers of Developed Countries May Lose out to Workers in Countries Having Cheap Labour:
When the US competes with less developed countries, it gets access to capital as a benefit, whereas the advantage of less developed countries is their cheap labour. Globalization gradually increases the returns to capital in rich countries such as the US and decreases the labour in those same countries.
The pros and cons of globalization show that there would be many benefits to the world having no borders. Still, there are also many significant challenges which need to be solved for it as a workable solution.
It does not matter whether one supports a world without borders or in support of the current state of affairs; one truth is found that it is our responsibility to help each other.
In general, the supporters and opponents of globalization argue that this phenomenon has created both winners and losers. Supporters give more importance to its benefits while critics say that globalization needs to improve the conditions of global trade.