Globalization has become a common buzzword that people now throw it around in conversations. Many believe that it’s a positive thing; after all, what could possibly be wrong with connecting with people halfway around the world? However, a lot of people say that it can have detrimental effects and that it should not be put into place. Here are some of the benefits and disadvantages of globalization:
List of Pros of Globalization
1. It lowers the prices of goods.
Free trade is one of the biggest benefits of globalization. When free trade happens, companies won’t need to pay high amounts of taxes and tariffs to import goods from other countries. As a result, they can pass on the savings to their customers and lower the prices of their products. This, in turn, can result to a better market for consumers, since they’ll have more options to choose from and can purchase what they need and want at a reduced cost. It can also lead to a stronger and livelier economy since more people are buying goods and services and spending their money.
2. It gives countries access to products they otherwise won’t have.
Globalization allows people to learn about the products that are only found or manufactured in other countries and have access to these items. Those who live in the U.S., for example, can buy and enjoy exotic fruits that only grow in Southeast Asia. Those who live in South Korea, on the other hand, can purchase shirts, bags, and clothes that are made in Europe.
3. It can pave the way to more job opportunities.
Globalization gives countries the opportunity to reach out to a wider audience and offer their products to more people. Sooner or later, this can lead to a higher demand for their goods. When this happens, they’ll have to create more jobs and hire more people who will help them plant, harvest, or manufacture their products and stay on top of customer demands.
List of Cons of Globalization
1. It can damage cultures and traditions.
Cultural globalization happens alongside economic globalization. This can be a good thing since it exposes people to the norms and ideas of those who live in other countries and promote tolerance and respect. However, when foreign cultures penetrate a country, it can cause people to forget or even abandon their own values and traditions. When this happens, it can lead to cultural homogenization and facilitate the disappearance of distinct cultural features.
2. It can marginalize poorer countries.
Ideally, globalization can promote equality among all countries since it gives everyone access to goods and services. But this isn’t really the case. In the real world, only rich countries with multinational companies benefit from globalization, while smaller nations and developing third-world countries get left behind.
3. It can promote labor drain.
Globalization opens the doors to workers and allows them to find employment in other parts of the world. Unfortunately, this can put a strain in many job markets, especially those that don’t have lots of employment opportunities or offer lower salaries. These places can experience labor drain and have a shortage of well-educated, experienced, and highly qualified staff.
These are just some of the pros and cons of globalization. It’s important to study and understand them and know how globalization can impact lives and economies around the world.
Crystal Lombardo is a contributing editor for Vision Launch. Crystal is a seasoned writer and researcher with over 10 years of experience. She has been an editor of three popular blogs that each have had over 500,000 monthly readers.