In order to understand the positive and negative effects of globalization, we first need to under what globalization actually is. In simple words, globalization is a modernized development of the business world. The process that allows the flow of the business through the nations comes under the era of globalization. Taking a business to expand world-wide and generating revenues from international exposure is what mainly constitutes the globalization here.
To understand globalization, take an example of a shirt you own in your wardrobe. Often, we come across the tag that says ‘Made in China’ or ‘Made in Indonesia’. This means that maybe the silk was prepared in china, assembled in China or Thailand and shipped across the oceans before it reaches your local store. What is actually happening here is globalization. The flow of trade or business among different nations.
Globalization has been around for more than a decade now and is seen to be continuing for further long time. Not only the revenue generation, but globalization has become quite necessary to business world. Positive effects are many. But negative cling along too.
There have been many conflicts between people supporting the positivity of globalization, as well as the negativity of it. When looked closely, both of them seem to make sense. Following are explained some of the positive and negative effects of globalization.
Positive Effects of Globalization:
- For the developing countries, globalization induces knowledge into the western society about the issues taking place here. This accounts for a better opportunity to improve the economy of such developing countries by improving their standard of living.
- Globalization directly benefits the end customers because the competition witnesses and increase in business. This leads companies to lower their prices which proves to be beneficial for the common man.
- Due to globalization, the media coverage in developing countries increases, resulting in drawing attention of the world to the human rights violations. Human rights can then be improved and protected because of this.
- The competition at the global levels directly gives space for the creativity factor to increase and promotes innovation as a whole. The prices for the various services and commodities can also be kept under check in this way.
- Developing countries are able to reap the benefits of current technology without undergoing many of the growing pains associated with development of these technologies.
- Increased cooperation and improved interactions helps the governments to be able to work together towards common goals.
- With the help of globalization, a greater access to foreign culture in the form of movies, music, food, clothing etc. can be pursued. This only increases the number of choices and of course, the awareness of what is going on around the world.
Negative Effects of Globalization:
- On the negative side, the benefits of globalization are not able to reach everyone equally. The poor tends to getting poorer while the rich tends to get richer.
- The concept of Outsourcing which is associated with the globalization is responsible for providing jobs to the population of one country. However, on the dark side, it takes away those jobs from another country. This leaves many people out without even giving them a chance.
- Due to increased interaction through globalization among the different countries, the ideas and innovations of one tends to influence the other. This results in everything getting mixed up, making the individual countries lose their own specific culture and tradition.
- Globalization inevitably triggers the chance of a disease spreading worldwide. This could include any invasive species that may end up resulting dreadful for the non-native ecosystems.
- Talking about the international regulation, there is little, or none. This can have a very negative effect on the safety of people and the environment of a nation if taken in the wrong hands.
- Large fast food firms such as Dominos and Mcdonalds seem to be spreading their franchisee in all parts of the world. This is as a result of the globalization which creates all kinds of negative effects on people’s health. Nations not familiar with such junk type gets easy access to it and end up deteriorating their well-being.
When seen in different contexts, the globalization can prove itself to be a boost for a developing country economy or it can prove to be harmful in certain cases. However, if some specific and strict international regulations can be set up and followed, then the negative effects of this can be taken down to a level where they can be controlled.