- Globalization is the increase in interdependence among national economies of both developed and developing countries. Globalization occurs when countries open their borders to expanding flows of trade, capital, labour and ideas with the rest of the world.
- It is the interaction between the people, companies, and governments of many different countries. It has come to its current state because of international trade and investment, aided by information and communication technology, which has brought everyone in the world closer together.
- But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development.
- This current wave of globalization has been driven by policies that have opened economies domestically and internationally. Many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.
- Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life. Information technologies have given all sorts of individual economic actors�consumers, investors, businesses�valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners.
- Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization.
Globalization leads to more employment and higher standard of living, especially among the developing countries. Theories suggest that globalization leads to efficient use of resources and benefits all who are involved.
Globalization will help the whole world to deal with crises like unemployment and poverty
Globalization has made the life of the third world citizen completely a different story. There are so many foreign companies that have made way to Orient and have made India a brand name all over the world.
Pros Of Globalization
- With globalization, there is a global market for companies to trade their products and a wider range of options for people, to choose from among the products of different nations.
- Developing countries benefit a lot from globalization, as there is a sound flow of money and thus, a decrease in the currency difference.
- To meet the increasing demands that follow globalization, there is an increase in the production sector. This gives loads of options to the manufacturers as well.
- Competition keeps prices relatively low, and as a result, inflation is less likely to occur.
- The focus is diverted and segregated among all the nations. No country remains the single power head; instead there are compartmentalized power sectors. The decisions at higher levels are meant for the people at large.
- Communication among the countries is on the rise, which allows for better understanding and broader vision.
- As communication increases amongst two countries, there is interchange of cultures as well. We get to know more about the other’s cultural preferences.
- As we feed to each other’s financial needs, the ecological imbalance is also meted out. Governments of countries show concern about each other.
Cons Of Globalization
- Globalization is causing Europeans to lose their jobs as work is being outsourced to the Asian countries. The cost of labor in the Asian countries is low as compared to other countries.
- The high rate of profit for the companies, in Asia, has resulted in a pressure on the employed Europeans, who are always under the threat of the business being outsourced.
- Companies are as opening their counterparts in other countries. This results in transferring the quality of their product to other countries, thereby increasing the chances of depreciation in terms of quality.
- There are experts who believe that globalization is the cause for the invasion of communicable diseases and social degeneration in countries.
- The threat that the corporates would rule the world is on high, as there is a lot of money invested by them.
- It is often argued that poor countries are exploited by the richer countries where the work force is taken advantage of and low wages are implemented.
As it helps us out, it is not benefiting many developin countires where workers are being abouse, paid little wages, made to work long hours.