– Globalization increases free trade between nations, which is beneficial not only for the economy but for other things such as; employment rate etc. – Globalization also increases the liquidity of capital. This helps the investors to find investments in the developing nations worthwhile. As the investments in the developing nations come from the developed nations, their living standards become better and economies begin to prosper. – Businesses and organizations now have more flexibility as due to globalization they can operate cross borders also, which also increases their customer pool.
– A global mass media is developed sue to globalization. This connects and holds whole the world together. – One of the best advantages of globalization is that it has increased the information sharing phenomenon. All over the world the information now travels not in minutes but just seconds. This has made it easier for the corporations and individuals to access information. – Due to development in the transportations, it has been easier for people to travel. Moreover, goods and services have been available at as lower cost due to reduction in travelling cost.
– Globalization has reduced cultural barriers. This has created the ‘global village’ effect, and hence easier for companies and organizations to integrate into new cultures. – Globalization has helped in the spread of democracy, especially to the developed nations – Nations and states are now dependent on each other more making them communicate and integrate more. – The interdependence has reduced the likelihood of war especially between the developed nations.
– Globalization has increased the awareness of environmental protection in the developed nations, who were first known as the industrialized nations and were the major contributors of pollution. Globalization has many disadvantages associated with it also. For example; due to globalization many jobs are moving abroad and people are losing jobs back at home. In United Kingdom thousands of jobs are lost every year because these jobs are outsourced to India. Hence the unemployment rate increases. In America also, many employees are laid off very year, as the company cannot afford to keep them.
The same companies then go for low waged countries and hire people from them. This might be a positive affect of globalization for the companies and corporations as they can increase their profit margins, but it is a negative thing for the economy as a whole. Many people also believe that this outsourcing in the long run is actually beneficial for the country, as the goods and services which are then sold at a lower price increase the prospects of expansion of that company, hence creating more jobs. However, up till now it has been a disadvantage.