Globalization is a new term that has found a significant place in the lives of the people. By globalization, we mean shedding down the walls of distrust and the barriers of suspicion in between countries, to make a bridge where ideas and beliefs can cross the boarders. Though globalization today primarily covers the economical side, the impact is not limited to the economy only. It actually affects every aspect of life, like cultural, social, psychological and of course, political. While globalization is seen as a sign of a hopeful future by some, there are others who believe that it can cause tremendous disaster for the world economy. The following are the advantages and disadvantages of globalisation:
Advantages of Globalisation:
•Developing countries benefit a lot from globalization, as there is a sound flow of money and thus, a decrease in the currency difference. •To meet the increasing demands that follow globalization, there is an increase in the production sector. This gives loads of options to the manufacturers as well. •The competition which occurs among traders keeps prices relatively low, and as a result, inflation is less likely to occur. •With globalization, there is a global market for companies to trade their products and a wider range of options for people, to choose from among the products of different nations. •Focus is diverted and segregated among all the nations. No country remains the single power head; instead there are compartmentalized power sectors. The decisions at higher levels are meant for the people at large. •Communication among the countries is on the rise, which allows for better understanding and broader vision. As communication increases amongst two countries, there is interchange of cultures as well. We get to know more about the other's cultural preferences. •As we feed to each other's financial needs, the ecological imbalance is also melted out. Governments of countries show concern about each other. •Increased free trade between nations.
Disadvantages of Globalization
•Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labour. •Globalization is causing Europeans to lose their jobs as work is being outsourced to the Asian countries. The cost of labour in the Asian countries is low as compared to other countries. •There are experts who believe that globalization is the cause for the invasion of communicable diseases and social degeneration in countries. •Threats that the corporates would rule the world is on high, as there is a lot of money invested by them. •The high rate of profit for the companies, in countries like Asia, has resulted in a pressure on the employed Europeans, who are always under the threat of the business being outsourced. •Companies are as opening their counterparts in other countries. This results in transferring the quality of their product to other countries, thereby increasing the chances of depreciation in terms of quality. •It is often argued that poor countries are exploited by the richer countries where the work force is taken advantage of and low wages are implemented. •Increased likelihood of economic disruptions in one nation effecting all nations •Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries •Greater risk of spoiling the cultural values of a developing country as more and more foreign investments, foreign people started working from developing countries, changes in the attitude, lifestyle of the existing developing countries due to foreigners. •Greater risk for developing countries workers in foreign companies can be misused, exploited by making them work more hours, making them work at night shifts. Conclusion
Globalisation is an extremely wide process, which has influence on all spheres...