GLOBALIZATION

COMPILED BY:
DANIA FARRUKH
GRADE 8A
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Definition:

Globalization is the growing trend towards worldwide markets in products, capital and
labour, unrestricted by barriers. It refers to a scenario where countries and nations
around the world become inter-connected and interdependent for meeting their needs,
both internal and external.

Advantages:

The advantages of globalization are discussed below:

Globalization broadens our minds. We feel that we belong to one world and we are
a part of one nation, namely, humankind.
Closer contact with foreign people makes us quite familiar with their manners,
habits, and customs. The cultures become richer as they come into contact with
each other.

Globalization helps us shake off narrowness. We get the chance of comparing our
country with other countries. In this way, we enrich our manners, customs, and
habits.

Globalization helps us fight illiteracy and promotes education. It gives us clear

knowledge of facts and things.

Globalization helps us shed or combat the burning social issues such as child-
labor, dowry, etc.

Globalization has helped the global community to fight against poverty. Large non-
profit and charitable organizations have launched massive campaigns to fight
hunger and poverty. They have successfully done huge fund-raising in this regard.

The benefits of science and technology have reached every corner of the world.
People around the world are connected through mobile phones and internet
technology.

Globalization has enhanced our knowledge of the world. A merchant can gather
valuable information about different commodities in different countries. Firsthand
knowledge of people and things is of great importance in international business.

Due to globalization, a political leader can gather much useful knowledge of the
people, forms of government around the world.

Globalization contributes in improving international relations and friendliness

among different nations.

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 We can communicate with people all over the world. The human life becomes
global. We have a global outlook on life.

Disadvantages:

The disadvantages of globalization are discussed below:

In a way, globalization has contributed towards increasing the gap between the rich
and the poor. Rich and wealthy people are able to exercise more control over the
national resources through the application of science and technology.
The environment has suffered greatly due of globalization. On one hand, the
increase in traffic between countries has polluted the tourist destinations. On the
other hand, the poisonous gases released into the air by large industries
have caused environmental pollution.

Globalized businesses have exploited the natural resources of the earth beyond
the tolerable limit. Some places on earth, which was once rich in minerals and
forests can no longer claim their richness.

Globalization tends to make the world a more homogeneous place. As a result,

many communities failed to preserve their old tradition, custom, and culture. Being
attracted by the culture of developed nations, many people in under-developed
nations have shed their traditional dress, food, and rituals. This is yet another
disadvantage of Globalization.

Local businesses, hand-loom industry, Cottage and small-scale industry suffered a

lot due to globalization. The highly specialized and efficient multi-national
companies take advantages of large-scale production and put products at
throwaway prices. The local industries could not compete with their global
counterpart.

The global economy is now inter-connected. The economic downfall of one major
economic nation adversely affects the entire global community.

Globalization has caused specialization of labor. On one hand, there is an increase

in demand for skilled labors. However, it has caused enough disadvantages for the
unskilled labor group. There are few employment opportunity for unskilled labors in
a global environment.

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 The more technologically advanced countries are able to sell their products to less-
developed countries. Hence, the less developed countries become dependent
upon the superior nations.

The adverse effect of globalization is not restricted to financial and economical

imbalance. Last century has witness spread of diseases from one country to
another country. Diseases spread to local places when a diseased person from a
foreign country comes in contact with local inhabitants.

Globalization is responsible for the emergence of large number of multi-national

companies. Very often, it is found that they do not provide good working condition
to the workers. Further, forests have been cut for setting up large industries. The
industrial discharges have widely contributed towards environmental degradation.

Arguments in favour of globalization:

To begin with, globalization has contributed to the worlds economies in many beneficial
ways. The advances in science and technology have allowed businesses to easily cross
over territorial boundary lines. Consequently, companies tend to become more
productive and competitive thereby raising the quality of goods, services and the worlds
living standard. As far as consumers are concerned, quality goods at the right price will
be delivered. This helps to bring down prices. Quality improvement and price reduction
will then be enjoyed.

Secondly, several companies from the more developed countries have already ventured
to establish foreign operations or branches to take advantage of the low cost of labor in
the poorer countries. This kind of business activity will provide more influx of cash or
investment funds into the less developed countries.

Thirdly it increases the advent of multinational companies that bring modern up-to-date
technology in less developed countries. Not only MNCs bring with them modern
technology but also it brings investment funds, organisational structure, managerial
culture, distribution network, etc. All these create income and employment in the
country.

The controversy over globalization:

One cannot deny the negative effects which have derived from globalization. It is feared
that globalization will promote fierce and unhealthy competition. Instead of competition
and cooperation, one may argue that MNCs will swallow the domestic producers of poor
backward countries overtime. Ultimately, this will cause concentration of economic and
political power into the hands of the foreign business enterprises.

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Merely opening up the domestic economy without reaching out to foreign markets or
helping industries to meet the global challenges has limited the benefits of globalization
without reducing its costs.

The apparent increase in export earnings of the less developed countries as a

consequence of globalization is not expected to provide great benefits, particularly
those in the lower income brackets. Further, modern technologies used by the MNCs
have the potentiality of making the unemployment situation worse. This widens
inequalities in the distribution of income and wealth. In several developing countries
food, employment and health scenarios have been adversely affected for the poor
people as a consequence of new economic policy.

Foreign capital is not interested in producing goods that an underdeveloped country

requires. Globalisation then distorts production structure of an economy.

Conclusion:

In conclusion, I like to reiterate that globalization is inevitable and no country can afford
to ignore the wave of globalization. However, adequate care, caution, and measures
should be taken to mitigate the ill effects of globalization so that every nation can take
the fullest advantage of globalization.