Globalization can have Positive and Negative Effects

It is an economic, social, cultural and political modern process, which has brought with it different events in the world, especially in economic systems of the countries like Colombia, where the phenomenon started in 1990 with Cesar Gavirias government. Colombia was declared nation in crisis, so it needed to resolve problem of worldwide negative image about itself. The problem was caused because local industry wasnt the best due to companies generated so much waste; they sold poor quality and expensive products, moreover workers wasted any time; A social level, Colombia had high rates of violence and corruption, consequently low investment was destroyed for terrorist attacks from groups outside the law and the remaining money was used in governors personal interests. If Colombia decided to start its globalization, it could become a famous and recognized country, and it was done; however Colombia wasnt ready for this, so that it produced positive and negative effects in its economy. Positive Effects. Local Industry grew on average 3,75% from 1990 to 1995, according to the Report Globalizacin y Apertura in year 2.000 which was published by Republic Bank on its website; because the companies could import machine, equipment, raw materials and commodities, which were less expensive in other countries so everybody could buy different kind of cheaper products with better quality. It wasnt possible before; however it was all to the good The Local Industry competes in international markets today, some factories use state of the art, the products that be made by them are good quality and cheap and other companies have been recognized internationally for their job and the excellence in their process. Primary sector was also growing in 5% because the companies could export commodities as grains, vegetables and minerals, especially oil to other cultures, nevertheless the products had been exported by the firms, those had good quality, Lowest Prices and much innovation. The Farms are an important source of employment of 25,33% information published by DANE on website, moreover this sector is embedded now with the Industry sector, so this becomes in a new sector in the economy, for example the food sector makes products delicious and innovative for taking advantage of exotics and tropical fruits; on the other hand Colombia provides crude oil in the world of so low cost. Service sector had to create new strategies for competing with other associations, so this sector had to search new clients, other nations and other market for their products and services in

addition to lower prices and improve their promotions. Today is popular find new services in the market, logistic, Informal education, security, telecommunications, cleanliness and other activities, which have produced new opportunities of employment, new income and most wealth in the region, in fact it generates most 50% of employment according to inform published by Ofertas_empleo.com. Negative Effects. Local Industry had to use new technology so that it didnt use human resource, which caused more unemployment from 7% to 1o%, consequently people couldnt buy whatever product not even basic products, so lowered shopping, and went up unemployment, poverty and violence, although this was 20 years ago, the problems have continued and it supposed to be increasingly worse. Primary Sector had some subsectors, which disappeared because the imports of them grew 40% with best prices and quality in the market, so everybody preferred to buy to foreign companies, therefore the local firms failed for instance farms of soy, sesame, corn, wheat, etc. In fact the event produced more unemployment (7%) and moving to cities for lack of opportunities. This was confirmed by the report published by Ministry of Foreign Trade in year 2.001 on its website, which is known Ministry of Trade, Industry and Tourism now. 10 years later, the farmers started to leave their farms to go to cities, since the field wasnt profitable consequently it increased unemployment and violence in the cosmopolitan cities and those problems havent yet been resolved. Service Sector had to import many things to improve its activities, as the subsectors of transport, communications, financial, public services, Education, but the imports in an economy are outflows thus our country was spending more than it was generating in public revenue, this produced a fiscal deficit and high inflation, hence that the prices went up and unemployment too. Some people didnt have what to buy and workers didnt get the necessary for them; Colombia resolved this many years ago, however multinationals are foreign, other local firms are possessed by magnates and economics groups, who are owners the all business system, I mean the wealth is only of a few people. In Conclusion globalization brought negatives and positives events in our economy, the negative effects helped local industry to be best, go up its sales, participate in new markets, use technology and be most competitive, in fact the Colombians are better workers now; they train in different topics, speak other languages, seek better opportunities and feel more confidence about their Economy.