Advantages and Disadvantages of Globalisation

Advantages and Disadvantages of Globalisation

It has taken our society a long time to get to where it is. Its social, economic, cultural, and political conditions were not the same as they are right now. A lot of processes and movements have brought humanity to where it is right now. One of these processes is globalisation. It, obviously, has its own advantages and disadvantages.

WHAT IS GLOBALISATION?

As the name suggests, globalisation is the process of integration on a global scale. It is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. It facilitates cross-border trade in goods and services, technology, and flows of investment, people, and information. This cross-border trading leads to the growing interdependence of the world’s economies, cultures, and populations.  It mainly refers to the spread of products, technology, information, and jobs across national borders and cultures. It has taken centuries for countries to form economic partnerships to facilitate these movements.

This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

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HOW DID GLOBALISATION HAPPEN?

Policies that have led to the opening of economies domestically and internationally are considered to be the driving force behind the current wave of globalization. The end of the Second World War was followed by many countries adopting free-market economic systems. This led to a dramatic increase in their own productive potential. Additionally, it created new opportunities for international trade and investment. Large scale corporations have been major beneficiary of globalisation. They have been able to set up foreign factories and establish production and marketing arrangements with foreign partners. Thus, international industrial and financial business structure is a defining feature of globalization.

Removal of cross-border trade barriers has made formation of global markets more feasible. There are various inventions that have accelerated the process of globalization. These include the steam locomotive, steamship, jet engine, and container ships are some of the advances in the means of transport while the rise of the telegraph and its modern offspring, the Internet and mobile phones.

The International Monetary Fund, in 2000, identified four basic aspects of globalization. They are trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge.

Advantages of Globalisation

Pooled Resources

A major advantage of globalization is that it allows countries to combine their resources. This allows them to start larger projects that they would not have been able to do on their own. One of the best examples of this is the construction of the International Space Station. It took$150 billion to construct the ISS. Its predecessor is the Mir station, which cost mere $4.2 billion. Five countries pooled in their resources to construct the ISS. These countries were the United States, Russia, Canada, Europe, and Japan. This aids many countries in their space mission.

Advantages and Disadvantages of Globalisation

This also allows for better use of the money. Since there are more direct stakeholders involved, there is more deliberation on the investment of the money.

This pooling together of resources would also help in battling problems that the world is facing. Problems such as poverty, hunger, climate change require large amounts of money to be defeated. A single country cannot afford to do this. However, if a large number of countries were to join hands, tackling these problems would be a lot easier.

More Job Opportunities

Globalisation makes it easy for individuals to go to other countries to find work. This allows them to pursue better job opportunities and work conditions for themselves. In underdeveloped or developing countries, this benefit is even more important. Individuals who cannot find suitable work at a considerable pay for themselves can now move to other countries.

This has also led to corporations setting up shop in foreign countries. They set up factories in countries where they can get cheap labour. This creates employment opportunities for thousands of people.

Reduces Exploitation

When borders become less restrictive around the world, people tend to move to locations where their best opportunities exist. In addition to getting better pay and conditions, this allows them to escape exploitative conditions. When there aren’t enough opportunities, people are forced to choose whatever opportunity is. Their financial conditions (which might not be the case for everyone) and need for survival make them work however possible. When more opportunities are available, they get to choose for themselves. This allows exploitation to reduce. This is even more helpful in countries that are either developing or underdeveloped.

This advantage could also raise employee wages, reduce concerns with human trafficking, and limit youth labour and slavery that are still problems in some areas of the world. Even in the economies where the middle class is growing, there is still a substantial difference between what an acceptable wage is there compared to what it is in the developed world. By exploiting situations like this, it becomes possible to look at other forms of labour, including prisoners, children, and trafficking. Emphasizing a globalization approach would reduce these issues because it would create more conditions for equality.

When there are fewer restrictions on travel, imports, and exports, then there are more opportunities for people to find moments of success. Although the wealthy nations might see a decline through this process, those who live in poverty would see massive increases in their standard of living.

Diversity

This also benefits companies in terms of having a wider talent pool to choose from. Today remote workforce could work from anywhere in the world with an internet connection, allowing organizations to choose from the brightest and best candidates the entire world has to offer. This also allows them to become more inclusive in their workforce. People from all across the world are available for hiring. They can be of different races, nationalities, and cultures. This increases the diversity in professional spaces. This includes teams working across different locations, people traveling and moving countries for work, having a range of different work ethics and practices and even religious differences. All of these can be challenges, but overwhelmingly are a positive thing in the workplace as it brings together different ideas and insights and perspectives.

Disadvantages of Globalisation

Increase In Exploitation

Large scale corporations are major benefactors of globalization. They can set up their factories in developing or underdeveloped factories for cheap labour. This allows them to reduce their costs. Because of standards in each country, it becomes possible for them to pay workers in foreign country far less than they would in their home country. They also get away with this without any criticism. Additionally, since they set up shop in countries that aren’t that developed, there also create hundreds of much-needed employment opportunities. This means that people do not have an option of quitting this job. Hence, they are forced to work under unacceptable working conditions.

Advantages and Disadvantages of Globalisation

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Controlled By Those In Power

No matter how democratic a state is, there is only a select group of people who make the policies and legislations for that state. In case of globalisation as well, these individuals will create policies, legislation, and frameworks that will bring the world closer together. Given that these are the people who make the decides, they would never let policies against them be implemented. Thus, they disallow policies that affect their positions. Additionally, they pass policies that increase their influence and power. If there is one trait that most people who are in power share with each other: they wish to maintain it at any cost. Globalization seeks to improve the standard of living by by redistributing some of the wealth earned by the rich to the poor. This process could be manipulated by those in charge to benefit only their nations or communities instead.

Pros and Cons of Globalisation

PROS

CONS
Pooled resources

Increase in exploitation

More job opportunities

Controlled by those in power
Reduces exploitation

Diversity

 

 

 

 

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Rhythm Bhatia