Pros and Cons of Globalization:
Globalization has integrated the world economically, socially, politically and culturally through the advances in technology and means of transportation and communication. It is an undeniable fact that globalization has resulted in both positive and negative effects which must be addressed accordingly.
Extent of the Issue:
Advantages of Globalization:
- Increased free trade between nations.
- Increased liquidity of capital.
- Corporations have greater flexibility to operate across borders.
- Global mass media ties the world together.
- Increased flow of communications allows vital information to be shared around the world.
- Greater ease and speed of transportation for goods and people.
- Spread of democratic ideals.
- Reduction of likelihood of war because of interdependence between countries.
- Creation of middle class in developing nations because of outsourcing.
- Increased competition has improved the quality and decreased the cost of product.
- People worldwide can know each other better through globalization.
- Spread of education through internet, visa relaxation and scholarships.
Disadvantages of Globalization:
- There is free movement of capital goods, but no free movement of labour.
- Spread of materialistic lifestyle and attitude that sees consumption as the path to prosperity.
- International bodies like the world trade organization infringe on national and individual sovereignty.
- Globalization uses up finite resources more quickly.
- Globalization has increased world carbon dioxide emissions.
- Globalization sets up currency “race to the bottom” with each country trying to get an export advantage by dropping the value of its currency.
- It encourages dependence on other countries for essential goods and services.
- It ties countries together, so that if one country collapses, the collapse is likely to ripple through the system. E.g., American recession of 2008
- Increased chances of war as countries vie for resources.
- Onslaught of western culture.
- Economic exploitation of the poor labor.
- Smaller local business will not be able to compete with the major conglomerate corporations.
- Some people consider it a new kind of colonialism.
- Greater risk of diseases being transported.
- Greed of capitalism.
- Most of the economic benefits are accumulated by the few multinationals.
- Powerful and rich countries are exploiting poor countries.
- Media is controlled by big companies.
- Today, wars are waged to save economic interests.
- Poor rule of law allow multinationals to exploit labor and resources in developing countries.
- West is promoting economic and cultural colonialism.
- UN is a puppet in the hand of powerful countries.
- Developed countries support dictatorship in less developed countries for their interests.
- Divide and Rule.
- Ensuring that human social values rule economic globalization.
- Capitalism should be replaced by a system which ensures even distribution of benefits.
- World mass media must be free.
- UN chartered should be revised so that developing countries should not be deprived of their resources.
- Worldwide health and safety precautions should be ensured.
- Multinationals should not be allowed to exploit labour and resources.
- Strict environmental regulations should be enforced.
- Local business should be promoted and protected.
- Cultural colonialism should be discouraged.
- West should support democratic values in developing countries.
- Effective set of instructions at the international level to regulate world economy.