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Effects of Globalization
Globalization is the process of interaction and integration among people, companies
and governments worldwide. It is the process by which organizations and businesses develop
international influence and start operating on an international scale. Since the 18th Century
globalization has accelerated due to advances in technology, transportation and
communication. Globalization is brought about by the ease of movements of people and goods
from one economy to the other. Globalization in general has brought about some profound
effects economically, politically and socially in both developed and developing nations some of
which are positive and some negative.
Among the positive economic impacts of globalization is the increased production of
goods and services by Nations. Through globalization, companies and countries have had
access to a bigger consumer base. Instead of selling their products and services to their home
countries, businesses can expand to other countries therefore boosting sales which increases
productivity as these requires them to produce more goods and services to cater for the
increase in demand from other countries therefore making companies boost their profits
brought about by the bigger consumer base.
Globalization has brought about the movement of companies from high cost
production areas to areas where the production cost is low. This results in the reduction of
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prices of consumer goods as the cost of production is low which in turn brings about healthy
competition in businesses which boosts innovations. This competition among companies can
spur the invention of newer and better quality products that meet consumer needs at a cost
effective price.
Globalization has also led to the increase in Industrialization among countries, the
major benefactors being the developing countries. Industrialization being the process
through which agrarian (farm based) economies transform into mass manufacturing
economies. The developing countries due to their financial muscle have been able to build
and set up manufacturing companies in developing countries that have been able to convert
raw materials into finished products. This in turn has led to the creation of employment and
the development of infrastructure in the developing countries as roads have been built to
facilitate the movement of raw materials and finished products from one place to the other.
Another major economic advantage of globalization is the increase in the integration
of global capital markets which has made it easier for firms to access capital from other
countries. ("Positive and Negative Effects of Globalization")The enhancements of national
financial and capital markets coupled with the increased improvements in the globalization of
national economies and information technology has catalyzed financial innovation and
impelled the growth of cross- border capital movements. Globalization has also enabled
countries to borrow funds from big organizations like the World Bank and the International
Monetary Fund to enhance their economic growth. Alternatively, developing countries have
also been able to borrow funds from the developed countries to sustain their economic
growth.
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Apart from the economic advantages, globalization has also played a vital role socially
and culturally. Cultural and artistic expressions values and ideas have been transmitted
between people of different Nations. Information and technological advancement has
enabled people to have a better understanding of other people’s culture and virtually
connect with people from other parts of the world at the touch of a button. People can
therefore interact with each other faster and more effectively therefore communities are less
insulated than ever even without travelling.
Globalization has made it possible for the access and assimilation of new cultures
through education and entertainment, case in point the Bollywood and Hollywood cultures
that are among major cultural influencers have been adapted by many people all over the
world and consequently impacted the ways of life of people who belong to different cultures
altogether. Globalization has also enabled the acquisition of art which include but is not
limited to paintings and sculptures from people of different regions all over the world. This
has led to fewer misconceptions and less stereotyping of foreign values and a better
understanding of the same altogether.
Adaptation of global cultural trends has also largely been brought about by
globalization which has consequently resulted in multiculturalism. Clear examples of cultural
globalization include the trading of commodities like avocados and coffee. The origin of
coffee is believed to be Ethiopia and was mostly consumed in the Arabid region, however due
to commercial trades that took place after the 11th Century, it is now a globally acclaimed
commodity that is consumed by people from all over the world.
Globalization has also played a major role politically. This type of globalization centers
on how the world leaders have integrated their laws and built alliances that benefit them
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mutually. International norms have been established when Nations sign treaties with
international bodies, these are agreements that ensure the signatories adhere to a set of
norms and standards. This can help prevent a race to the bottom in regards to environmental
standards, labor standards and intellectual property theft. A major example is the
establishment of war crime standards that are regulated by the International Criminal Court
in Brussels Belgium.
Political agreements between states has led to the relaxation of the movement of
labor across boundaries. This leads to the emigration and immigration of millions of people
globally. Increasing numbers of people move across borders in search of better lifestyles and
better employment opportunities, to re- unite with their family members or to avoid
persecution in their home countries. This form of migration has been made easier by
globalization through dissemination of information through mass media, better
communication, improved transport among others. An example of this is the freedom of
movement of people around the 27 European United Nation states.
Globalization has also led to the ease of trade between nations which has in turn led
to the development of better trade routes. Nations that have specialized in the production of
a particular product or service will become global “hubs” producing their product of expertise
with great efficiency and at a scale, which in turn will enable other nations to produce other
products more efficiently and thereafter trade with their member states. Political
agreements have also resulted in the creation of a bloc of allies that are stronger than the
sum of their parts. This is demonstrated when small African and Pacific nations convene to
vote as blocs in the United Nations.
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Globalization has not only had positive effects on world nations but it has also led to
adverse consequences on developed countries most especially. As a result of globalization,
many people seek employment all over the world, this has resulted in employers seeking
cheap labor where a slight mistake leads to the termination of employment of an employee
by the employer since the employer can find cheaper and more skilled employment with
ease. Before globalization, skilled professionals secured employment in government sectors
and multinational companies where they received high salaries. It was normal for an
employee to resign from a job and secure another one immediately a factor that has seen
gradual and drastic change in the advent of globalization leading to job insecurities.
The advent of globalization has seen a huge surge in the number of terrorist related
activities in different parts of the world. There is a lot of travel that takes place due to
worldwide integrations. Whereas people travel for various reasons such as study, work,
visiting relatives, business and access to better health care among others, there are terrorist
who come to foreign countries in the guise of “employment seeking” but with the intention
of carrying out terrorist activities. ("What is Globalization? Examples, Definition, Benefits
and Effects") Terrorists locate and settle in foreign countries and even go ahead to recruit
the young and gullible citizens of those countries making them participate in terrorist
activities in the guise of religion, this has led to the rise in tension, mistrust and fear in society
in general.
Fluctuation in currencies and price instability are among the problems brought about
by globalization. The dollar is used to regulate trade internationally, this results in the daily
fluctuation of currencies in the developing countries and abnormal pricing of goods and
services which leads to imbalanced economies and price instability. Despite the World Trade
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Organizations efforts to control the fluctuation in prices, these efforts are yet to be 100%
productive. This is because there has been a flooding of cheap counterfeit products in the
market that rivals the good quality products which has come about as a result of the
availability of cheap labor and low production costs.
To sum it all up, in as much as globalization has resulted in the adverse effects of both
developing and developed nations due to factors such as terrorism, price instabilities and
economic fluctuations among others, there has been tremendous benefits that have come
about as well. The pros that have been brought about by globalization have outweighed the
cons as huge strides have been made economically, socially and even politically, effects which
have been felt all over the world. Industrialization, increased production of good and
services, promotion of healthy competition among companies of the world and the
sociocultural advantages being among them.
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Works Cite
"Positive and Negative Effects of Globalization." Custom Essay Writing Service Online Edusson.com, 9 Jan. 2019, edusson.com/blog/positive-and-negative-effects-ofglobalization
"What is Globalization? Examples, Definition, Benefits and Effects." Youmatter,
21 Jan. 2019, youmatter.world/en/definition/definitions-globalization-definitionbenefits-effects-example
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