Discussion on the Advantages and Disadvantages of Economic Globalization

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Discussion on the advantages and disadvantages of economic globalization

At present, economy globalization, which can be defined as the expanding world integration through trade, financial flow and knowledge, has significant effect on developed and developing countries. We are living in a world where people can communicate efficiently and enjoy the freedom of exchange of goods and capital. Due to the economic globalization, the material life today is more colorful than before. However, there are also some arguments about this issue. The advantages of it are pleasing while the disadvantage should not be ignored at the same time. In this essay, the both sides of economic globalization will be discussed.

The positive effects of economic globalization are awe-inspiring. There are some primary advantages. Firstly, it creates plenty of jobs for developing countries. As the result of outsourcing, many companies set up their business in the third world countries, such as China and India, where the wage and the health benefit of workers are much lower than these in their own countries. That leads to the cost reduction and the profit growth (Reich, 1992). According to Jagdish (2005) the global economy provides a market for the products of cottage industry, providing more opportunities. Secondly, the transnational corporations facilitate the integration of production and capital. The international division of labor is consolidated. Different countries play their own parts in the process in the trade and produce the best possible results. In this method, the productivity has been improved (Malia, 2008). For example, the Boeing Company has many cooperative partners around the world who supply the components to assemble the airplane. The third advantage is its impetus to the technology. The logistics industry is a good case in point. A more efficient, convenient and high-tech system for the commodity is necessary. At present, in some developed countries the logistics...
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