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The Good and The Bad of Globalization

(Last Updated On: March 5, 2024)

You must have heard about globalization a lot. But if you don’t know what it is and how it greatly impacts world order in each individual’s life. There is no need to worry. This article will explain globalization in the simplest way possible with globalization’s pros and cons. Globalization’s far-reaching consequences are complicated and politically fraught.

Globalization due to modern technological developments benefits society while damaging specific sections. Technology has deep roots belonging to globalization. Like everything, globalization has pros and cons as well. So, in this article, we will try to simplify the whole process for you to understand.

What is globalization?

In simple words, if you see today’s world order, every country depends on other countries because of trading and economic interlinking. In this world, states can stay isolated because of dependencies.

There are many advantages of globalization but there are disadvantages of globalization as well. One of the main advantages is some countries are agricultural while others are our industrial economies so there is a balance because of globalization in the world order. The economy of the state depends on four things, which are as follows:

  • Agriculture
  • Industry
  • Manpower
  • Natural resources

Every country has one of these major economic sources. So if one is rich in oil, they can trade it with any other necessities of their people like clothes, etc. High rates of imports and exports are benefits of globalization. It plays an important role in countries’ economic growth, even in developed countries.

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How does globalization work?

The global trade network is a living environment of supply chain partners linked with a single cloud-based fully generating platform. The paradigm – an interactive collaboration among carriers, shippers, forwarders, suppliers, 3PLs, and even customers – positively impacts the community, thanks to the benefits of widespread connectivity among participants. This connectivity presents several blessings that may assist corporations in streamlining their worldwide delivery chain management.

In the age of globalization, multinational corporations leverage technological advancements to capitalize on business opportunities in foreign markets, aiming to gain a competitive advantage in national economies through economic globalization. This term, shaped by modern globalization trends and economic systems, positively impacts richer countries and emerging economies, albeit sometimes accompanied by environmental damage. Nevertheless, the future of globalization hinges on technological advances and the formulation of sound economic policies, impacting not only capital markets but also the daily lives of individuals worldwide, a phenomenon that has been evolving since the 20th century.

Impact of globalization

The state’s economy grows with international trade, especially for poor countries. Foreign investments and foreign trade agreements can be proved as game-changers for the rapid growth of the economy. This is one of the aspects of globalization, but the effects of globalization are not only on a national level it affects individuals as well.

Many small businesses grew into international companies just through globalization connections. Globalization has made the availability of resources very easy, such as educational resources, industrial resources, job opportunities, employment opportunities, international investments, or any additional resources. Technology has played its role in the process.

That is why nowadays, people start businesses and keep international consumers in mind.  And if you want to make a business successful knowing your potential consumer is essential. A person or a group of some persons who pay to consume the products or goods produced by an organization. The consumer is the most basic part of a business.

Without consumers, a business cannot continue to exist. More and more customers are the keys to a successful business. More and more customers are the key to a successful business. Consumers purchase products. It refers to how the consumers or customers live and how they use their money to purchase the products. One’s life situation can be estimated.

In my stance, whether the customers have a good lifestyle or not. What type of products can they afford? Mainly, the lifestyle of a person is according to his or her needs.

Two major aspects of globalization

Internationalization is a business strategy that entails making services and products as adaptable as possible so that we may easily enter several national markets. This frequently necessitates the use of subject count specialists. Internationalization is sometimes abbreviated as “i18n,” with 18 denoting the number of characters in the term.

For example, IKEA internationalizes its fixture assembly instructions by removing any textual information that might need to be translated in favor of diagrams and pictures. Even if a product requires translation, it is frequently written to be culturally neutral. Pronouncing it is, of course, much easier than doing it. Internationalization has great economic ramifications for businesses.

Localization

Another aspect of globalization is localization. Localization refers to customizing a product to a certain target market. This usually happens after internationalization has taken place.

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Whereas internationalization generates a product that is easily adaptable to a variety of audiences in a variety of nations, localization takes that product and tailors it to a single market. McDonald’s has approximately 30,000 locations in over 100 countries. Its spread around the world exemplifies its globalization.

The employer develops a menu that is flexible to a variety of neighborhood tastes and customs. This policy is an excellent example of internationalization. In Israel, many McDonald’s restaurants serve kosher meals and beverages and are closed on Sundays and Jewish holidays. McDonald’s has also built a meat-free restaurant in India, where many people abstain from eating pig or pork products.

In both cases, McDonald’s has maintained its international brand identity while customizing its services and products to local markets. This is one of the most well-known examples of localization. This is how other companies and industry change their policies in a globalized society according to cultural, economic, and environmental conditions of a certain area in the international community.

The good and bad things about globalization

There are many benefits of globalization. For example, people have access to different cultures because of cultural intermingling. In this way, people become similar to the cultural traditions of other civilizations as well, and people become attentive to their social responsibilities.

A very important benefit is technology. Through globalization, the world has become a global village because of spreading technology worldwide. Globalization has made life quicker, more accessible, and easier.

Living standards of people have been changed due to globalization civil society all over the globe has evolved a lot. Increases in standards have both negative effects and positive effects. It benefitted the manufacturing sector for sure. Another benefit of globalization is that it has reduced barriers between nations and industrialized nations and the central role trade plays.

Globalization has removed different impediments to humankind’s development and increased human development potential. Some of the following are the benefits of globalization.

  • Economic development
  • Culture and development of nations
  • Human development
  • Rural development
  • Use of science and technology for development
  • Sustainable development
  • Access to resources
  • Equitable growth around the globe
  • Development Landscape
  • Reduces financial crisis
  • Making advanced economies

Cons of globalization

Now, let’s discuss the devastating effects of a globalized economy. Undoubtedly, globalization has contributed to varying levels of growth in advanced economies, but it also carries significant cons. One major issue is labor costs. In the context of globalization, there is a prevalence of low-cost labor often subjected to inhumane conditions. Even skilled professionals in labor-intensive industries receive lower wages. This perpetuates a deep-seated problem reminiscent of colonization. Additionally, these exploitative practices can exacerbate the impact of economic recessions, amplifying the hardships faced by vulnerable workers worldwide.

While globalization can bring about job creation and economic integration, its negative impacts are evident in the widening wealth gap between rich countries and poorer nations and the erosion of comparative advantage in certain industries, leading to negative effects such as job loss and economic instability.

Many middle-class workers have little clout in this global game and have developed a fear culture. Multinational firms are accused of social injustice and harsh working conditions, and they have the potential to exploit tax havens in other nations to avoid paying taxes.

As well as a lack of environmental care, natural resource misuse, and ecological damage. One disadvantage of globalization is that it can cause disproportionate growth of states’ economies.

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