Effects of Globalization

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Cornelia Nistor, Positive and negative effects of globalization / Annals of University of Bucharest, Economic and Administrative Series, Nr. 1 (2007) 152-163

Positive and negative effects of globalization
Assoc. Prof. PhD Cornelia Nistor Faculty of Administration and Business University of Bucharest Abstract Although globalization cannot ensure worldwide stability and economical equilibrium, or full environmental protection, its positive effects mainly regarding the trading development and the access to new markets are undeniable. Also, there should also be emphasized the opportunity for rather poor countries of developing in an extremely rapid rhythm due to access to new technologies, products and information, access to direct investments and loans. Among the negative effects there are: first poverty, persisting in the under-developed countries, the issues regarding the environmental protection and ensuring full democratic expression. Last, globalization should be regarded in view of the influence it has over the consumer economical entities.

Globalization is one of the most important issues in the current economical life. Even though at the present moment it cannot ensure the achievement of worldwide economical equilibrium, the macro-economical or world economical stability or full environmental protection, its positive effects mainly regarding the trading development and the access to new markets are undeniable. In respect with the disadvantages of this process, the issue is not the globalization itself, but the modality in which actions are taken in pursuit of globalization. The most important undeniable positive aspects are the opportunity for rather poor countries of developing in an extremely rapid rhythm due to access to new technologies, products and information, direct investments and loans, high mobility of all production factors. The greatest advantages have been recorded in the developed countries holding production factors which are net superior on a productivity level to those in the other countries, especially capital, which are capable of obtaining high efficiency levels in most areas, upon small costs. For these countries, the globalization ensured access on new markets, increases in the export volume and occurrence of favorable conditions for attracting foreign capital. Especially in the last years globalization has proven that it cannot be achieved by means of total freedom in action for the economical entities, but that the role of the state in the economical activity is of extreme importance, as well as in the putting into practice of economical development, with a 152

Cornelia Nistor, Positive and negative effects of globalization / Annals of University of Bucharest, Economic and Administrative Series, Nr. 1 (2007) 152-163

series of benefic consequences on a social level, finally reflected in an increase of the population’s standard of life. The idea is unanimous accepted that globalization does not have only benefic effects, and that its negative effects should also be closely taken into view; among such there are first of all poverty, persisting in underdeveloped countries, the issues regarding the environmental protection and ensuring full democratic expression. Although the need is admitted for all countries to unite their efforts in pursuit of overcoming such disadvantages, it is real that most economical entities are first of all focused on their own immediate interests, regarding mostly trading and financial aspects and less on issues regarding general, global interests. The process of globalization has evolved gradually, upon three major phases, mainly taking place in the second half of the 20th century1: - Internationalization of commerce, by its becoming free and by the un-regulating policy, so that starting with the 50s the growth rhythm of the commerce has become higher than that of the production; - Trans-nationalization of the capital flows, which starting with the 80s has...
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