Pros and Cons of Globalization

Topics: Globalization, International trade, Asia Pages: 9 (1536 words) Published: March 20, 2013
Susan McCormick

The Pros and Cons of Globalization

Starting out, I would first like to define globalization. It is” The worldwide movement

toward economic, financial ,trade, and communications integration. Globalization implies

the opening of local and nationalistic perspectives to a broader outlook of an

interconnected and interdependent world with free transfer of capital, goods, and services

across national frontiers. However, it does not include unhindered movement of labor and,

as suggested by some economists, may hurt smaller or fragile economies if applied

indiscriminately.”(Parikh,Jan.2010) Globalization has become one of the most debated

subjects of the 2000's. It has been said that it is one of the best things to happen to the

world by its proponents, and its opponents are labelled at is neo-imperialism. According

to CNN”Globalization and localization are two sides of the same coin.More than ever,

local communities are the secret of economic success. In the coming decades, the number and

strength of America's brain hubs will determine whether, as a country we will prosper or

decline. Physical factories will keep losing importance, but cities with a large percentage of

interconnected, highly educated workers will become the new factories where ideas and

knowledge are forged. Supporting growth in America's innovation hubs while arresting the

decline elsewhere is the real challenge that we face as a nation.”(CNN today, October 9,2012)

There are numerous pros and cons of globalization of which I will attempt to talk about both

in the upcoming pages. I am beginning with the pros: Productivity grows quicker when

countries produce goods and services in which they have a comparitive advantage.

Some argue that globalization gives a rise to new industries and more jobs in developing

countries. It also gives organizations access to cheap resources and labour in developing

areas in the world. It leads to greater employment opportunities for the people and also

consumers get quality goods at competitive rates. Transport and distribution systems are also

more efficient than ever before, making it much easier faster, and cheaper for businesses to

deliver their products to consumers. Electronic transfers also make making and receiving

international payments more secure and faster. Companies also have more flexibility to

operate across borders therefore they can profit through domestic as well as international

and also they can have access to much cheaper capitial from other countries if the rate of

interest is low. Globalization gives you a larger market therefore you can sell more goods

and make more money. Global competition and cheap imports keep prices low and steady,

so inflation is less likely to interrupt economic growth. The products are improved due to

global competition. Cooking styles, languages, customs have all spread due to globalization.

The spread of education worlwide is also affected meaning you can go anywhere in the world

and get the education you seek. Foreign trade is impacted on an economy, the WTO controls

the way things are handled throughout the world. Comparitive advantage is a factor.

Politics are merging and decisions that are being made are actually beneficial for people

throughout the world. We have become more social and open and tolerant towards other

countries, and we don't treat people from other countries as aliens. There are numerous other

pros to globalization, but I will end there.

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