Globalization has opened up business for international exposure where more and more business can now operate across various markets in the world. But globalization has come with its own fair share of challenges. We take a look at some of the pros and cons of globalization.
1. Promotes trade among countries: Globalization plays an important role in promoting trade among various countries. Countries are now free to do business with each other without any limitations.
2. Spread of technology: Globalization has opened up boundaries for technology to be shared across all countries and allows other countries to learn from each other.
3. Increases company profits: Globalization plays an important role in increasing company’s profits since companies are able to do business with each other therefore increasing each other’s market shares.
4. Promotes tourism: Globalization allows people to migrate from one region of the earth to the next which opens up new markets and promotes tourism among these nations.
5. Builds stronger ties among countries: Globalization is also known to build stronger ties among countries that do business together hence creating an enabling environment for these companies to work together in harmony.
6. Develops poor countries: Globalization opens up markets for poor countries to also sell their goods and services to other richer countries which open them up for development and prosperity.
7. Improves democracy: Globalization and democracy also go hand in hand. As people continue to interact with their counterparts in other parts of the world, they are able to learn more and more about internal affairs and also share their ideas which contributes to democracy.
8. Access to information: Globalization opens up accessibility to information that was previously unavailable in one country. This information may turn out to be more valuable and meaningful.
9. Culture intermingling: Globalization brings together people from diverse cultures to work together. These people end up learning more about each other’s culture and subsequently create diversification.
10. Opens up travel time: Globalization has opened up the world and reduced the time required to travel from one place to another. People can now move with speed to a different part of the world and can also attend meetings that are held in a totally different part of the world.
1. The rich are richer while the poor remain poorer: Globalization has somehow widened the gap between the rich and the poor where the richer have continued to get rich while the poor people have also become poorer.
2. Leads to job losses: Globalization opens up the country to other sources of labor which means that local employees who may not be qualified like their foreign counterparts end up losing their jobs.
3. Cheap labor: Globalization has made labor more available which has in turn reduced the cost of labor because the supply is high.
4. Social injustice and unfair working conditions: Globalization sometimes mean that foreign employees are subjected to unfair treatment by their foreign employers which increases social injustice.
5. Interference with political decisions: Globalization also means that governments especially those from developed countries may want to interfere with the political decisions of developing countries.
6. Brain drain:
Globalization has led to increase in brain drain where smart people from developing countries are shipped away to developed countries to offer their expertise and leave their countries in need.
7. Counterfeit products: Globalization has created an ideal environment for countries that produce counterfeit products to dump their products in other countries, especially in developing countries.
8. Leads to spread of diseases: Globalization has opened up countries for accessibility by several people from various countries. This means that people who enter a country may easily bring with them some diseases and infect other people within their country of destination.
9. Destroys industries in developing markets: Globalization is a sure way of destroying local industries since they face stiff competition from other industries in the world.
10. Leads to environmental degradation: Globalization has also led to destruction of environment as countries clear land and pave way for more industries to be built.