Pros and Cons of Globalization
Pros - Economic Aspect
• Employees of a
transnational corporation
may be well paid
compared to other workers
in the country
• Increased investment in
developing countries
stimulates their economies
• Free trade between
nations is established –
countries can produce to
its strengths and import the
goods it needs without the
threat of tariffs
• A wide range of products
are available at affordable
prices due to free trade
• Sharing of technological
innovations is fast and fair
Cons - Economic Aspect
•
Jobs are being outsourced from
developed countries to less
developed countries resulting in
higher unemployment
•
Transnational corporations are
becoming so large they are
beyond the power of smaller
governments
•
Transnational corporations may
have fewer environmental
regulations to follow and can pay
lower wages – they can ‘shop
around’ for best options
•
Economies are linked due to
trade – economic hardship in one
country will more greatly affect
other nations
•
Corporate headquarters are
usually located in the USA or
western Europe resulting in
resentment in the accumulation
of economic power
•
Cultural identity is lost due to
mass use of western consumer
products and entertainment
•
Profits usually do not stay in
developing countries – they are
returned to developed world
Pros – Cultural Aspect
• Globalizations of
communications sees
great quantities of
information shared around
the world
• The best of cultures can be
shared and understood on
a global scale
• There is more influx of
information between two
countries, which do not
have anything in common
between them
• There is cultural
intermingling and each
other is trying to know
about the other’s cultural
preferences and in the
process of doing so, we
are actually coming across
things that we like and in
the course of time adopt it
Cons – Cultural Aspect
• A small number of
private media
companies decided
what information is to
be shared and shape
public opinion through
sensationalization
(bias)
• Media and
entertainment impact
is westernizing other
cultures
• There are some
experts who think that
globalization; along
with the positive
aspects is also leading
to the incursion of
negatives like
communicable
diseases and social
degeneration
Pros – Political Aspect
• Gradually there is a world
power that is being created
instead of
compartmentalized power
sectors. Politics is merging
and decisions that are
being taken, are actually
beneficial for people
allover the world
• Since we share financial
interests, corporate and
governments are trying to
sort out ecological
problems for each other
• International agreements
are working towards trying
to protect the environment
from pollutants that cause
global warming, destroying
ecosystems, and
increasing acidity levels in
seas and oceans
• Communications allow for
the message of political
freedom tyranny in the for
of democracy to spread
globally
Cons – Political Aspect
• For nations that are
at the receiver’s end
are also giving up the
reins in the ends of a
foreign company
which might again
lead to a
sophisticated form of
colonization