Pros and Cons of Globalization

 

Pros And Cons Of Globalization Globalization is a new term that has found a significant place in the lives of the people. By globalization, we mean shedding down the walls of distrust and the barriers of  suspicion in between countries, to make a bridge where ideas and beliefs can cross the borders. Though globalization today primarily covers the economical side, the impact is not limited to the economy only. It actually affects every aspect of life, like cultural, social, psychological and of course, political. While globalization is seen as a sign of a hopeful future by some, there are others who believe that it can cause tremendous disaster for the world economy. Read on to find the pros and cons of globalization.   Pros Of Globalization   With globalization, there is a global market for companies to trade their products and a wider range of options for people, to choose from among the products of  different nations. Developing countries benefit a lot from globalization, as there is a sound flow of  money and thus, a decrease in the currency difference. To meet the increas increasing ing demands that follow globaliz globalization, ation, there is an increase in the production sector. This gives loads of options to the manufacturers as well. Competition keeps prices relatively low, and as a result, inflation is less likely to occur. The focus is diverted and segregated segregated among all the nations. No country remains the single power head; instead there are compartmentalized power sectors. The decisions at higher levels are meant for the people at large. Commu Com munic nicati ation on am amon ong g the co count untrie ries s is on the ris rise, e, wh which ich al allow lows s for be bett tter  er  understanding and broader vision. As com commun municat ication ion incr increase eases s amo amongst ngst two coun countrie tries, s, the there re is inte interch rchange ange of  cultures as well. We get to know more about the other's cultural preferences. As we feed to each other's financial needs, the ecological imbalance is also meted out. Governments of countries show concern about each other.   •

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Cons Of Globalization   Globalization is causing Europeans to lose their jobs as work is being outsourced to th the e As Asia ian n co coun untr trie ies. s. Th The e co cost st of la labo borr in th the e As Asia ian n co coun untr trie ies s is lo low w as compared to other countries. The high rate of profit for the companies, in Asia, has resulted in a pressure on the employed Europeans, who are always under the threat of the business being outsourced. Companies are as opening their counterparts in other countries. This results in transferring the quality of their product to other countries, thereby increasing the chances of depreciation in terms of quality. There are experts who believe that globalization is the cause for the invasion of  communicable diseases and social degeneration in countries. •

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The threat that the corporates would rule the world is on high, as there is a lot of  money invested by them. It is often argued that poor countries are exploited by the richer countries where the work force is taken advantage of and low wages are implemented.

Globalization Globalization referson tosuspicion, the absence of the walls of matchboxes thatwere every countrycountries, had, between themselves based mutual d istrust distrust and ambition. We different in fact divided into worlds, and therefore could never manage to deal with natural holocausts and deadly epidemics, which time and again challenged us. Globalization has strengthened the nexus and has helped us to know each other’s need in a better way. It has helped to demolish those walls that separated us and curbed our natural identity of being fellow human beings. Globalization has primarily become a fiscal term but its impact is not limited to the economy of the countries only, the term globalization actually refers to every aspect of life like cultural, social, psychological and of course, political. po litical. It is true that the impact of globalization is visible and affects largely the politics and the economy of the country but its effect on the mindset and the culture is noticeable gradually in the way people think and react. It’s like the Iceberg theory wherein what we do and say are at a t the tip and what we think and believe is at the base. The base is not visible but manifestations at the top are conspicuous. It applies here as well where people do not change abruptly but may be after a decade the change starts showing and seems radical. Pro-globalization Globalization is not a new phenomena, the base was laid long back when the Dutch East India Company and the British East India Company started trading with India. In history there were trade relations between different countries like Arab and Egypt and now in modern times that has translated into Globalization or Free Trade. It’s true that ultimately all the free trade resulted in the white man taking the burden proactively but then globalization leads to more employment and higher standard of living, especially among the developing countries. Theories suggest that globalization leads to efficient use of  resources and benefits all who are involved. According to libertarians, globalization will help the whole world to deal with crises like unemployment and poverty. It will help us to raise the global economy only when the involved power blocks have ha ve mutual trust and respect for each other’s opinion. Globalization and democracy should go hand in hand. It should be pure business with no colonialist designs. The way we have developed in the last 10 years, globalization seems to have given us good returns. Globalization has made the life of the third world citizen completely a different story. There are so many foreign companies that have made way to Orient and have made India a brand name all over the world. Pros and Cons of Globalization The pros of Globalization are many and they are as follows: •

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Now there is a worldwide market for the companies and for the people there is more access to products of different countries. There is a steady cash flow into the developing countries, which gradually decrease the dollar  difference. Due to the presence of a worldwide market, there is an increase in the production sector and there are lots of options for the companies now. 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.

 

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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. Since we share financial interests, corporate and governments are trying to sort out ecological problems for each other. Socially we have become more open and tolerant towards each other and they who live in the other part of the world are not aliens as we always thought. There are examples like now Indian girls work in call centers and work nights, which was a taboo even two years back. We are celebrating Valentine’s Day, scraping on Orkut, watching the Idol series, Fear factor, the Indian version Big Brother. There is a lot of technological development that we have undergone over the years. There are fewer brain drains since Asians are working in their own country though for a foreign company but are earning foreign exchange for their country.

There are cons as many as pros, which are a re as follows: •

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It is true that Europeans are losing jobs and that is posing a problem for them since the companies are outsourcing work to the Asian countries since the cost of labor is low and profits the company considerably. There is immense pressure on the employed Europeans who are always under the threat of the business being outsourced. Corporates are building up units in other countries equally well equipped as they have done at their own country, thus transferring the quality to other countries. 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. There is also a threat of corporates ruling the world because there is a lot of power, which is invested in them due to globalization. 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.

Impact of Globalization Globalization Globalization has made way for free trade and business and has communication between various parts of  the globe. It has potential to make this world a better place to live in. It is changing the political scenario thus deep-seated problems like unemployment; poverty and shift in power are coming to the picture. The marginal are getting a chance a to exhibit in the world market. The term "brand" is catching up in the Asian countries. It, however, is not only modernizing but also westernizing and to an extent also sinicizing the native cultures. The power play is leading to the linguicide or linguistic, cultural and traditional genocide. That is probably where we need to keep a check and not let diffusion go wild. There has been significant delocalization that needs individuals to be more tolerant since face-to-face interaction is no more the order  of the day. One American is trying to sort out his billing issue of his mobile phone with an Indian who is not a direct employee of the service provider. Now that sounds complicated and is complicated and has to be dealt carefully.