Pros and Cons Of Globalization

39

Advantages (pros) of Globalization

Most of the world’s countries are linked through trade agreements which means the consequences of wars would be different from what they used to be. Therefore, leading a war is harder today as this will mean destroyed economies. The superpowers; United States and China have close trade relations, so they will be very hesitant to declare war to each other or their allies.

Globalizm effects: Pros and Cons

The more dependent countries are, the less likely they will declare war to each other, as they wouldn’t get the risk of losing trade partnership. With organizations and defense alliances such as the UN and NATO, the possibility of conflicts has been dramatically decreased.Such international agreements also help protect human rights and prevent the use of unethical mass destructive weapons chemical weapons.  Additionally, international agreements help countries to address international environmental challenges such as global warming.

Disadvantages (Cons) of Globalization

The disadvantages of politically being influenced by globalization may be import / export restrictions which were originally made to balance the economy. The close cooperation and association of countries can also be a disadvantage because the countries influence their internal policies more.  This became particularly clear with the financial crisis in 2008.

There are also dilemmas to be taken into consideration about international and internal policies. On the one hand, it is necessary to open the borders and allow cross-border trade but, on the other hand, it’s important to help national companies to cope with the competition abroad. The United States has its own unique model for taxes and public services compared to many other countries. Therefore, it is difficult to find solutions that equally-suit to all countries and that makes it hard to take efficient measures to prevent potential future financial crises.

Effects of Globalization on Art and culture

The great influence of globalization on art and culture is especially visible through the influence of American culture on the other cultures. This influence has led to a hip hop and rap culture and most recently the entry of electronic music in many countries. In addition, culture and art are heavily influenced by trends in fashion, food, movies, art and more.

Advantages of Globalization in Art and Culture

The increased immigration and open borders among the countries also mean that cultural differences are gradually becoming smaller and smaller. Most people are open to this changes brought by the foreign cultures. For example, in the food culture, globalization has led to change food habits such as pizza in Australia and tacos and kebabs in Denmark.

It also means that new genres arise when different branches and traditions in art and culture from different countries are mixed together. Therefore, globalization brings about a constant development which is impossible to slow down.

Disadvantages of Globalization in Art and Culture

As the impact of new cultures grows, some countries and residents feel that they gradually lose their own identity. Some are afraid of losing their national feelings and their traditions and, in some cases, end up resisting this interference with other cultures.

Effects of Globalization on Economy

Economy and politics are also linked tight to each other via single currency, or single trade taxes and tariffs that will control imports and exports between the EU and other countries.

globalization effects on economy

Globalization’s impacts on the economy resulted in WTO (World Trade Organization). The purpose of WTO is to arise more attention to international trade and to eliminate restrictions and taxes between countries.

When capital and investments began to freely cross national borders financial transactions became another crucial driving force that strongly contributes to the growing importance of globalization.

Advantages:

The single currency – the euro – between EU countries has led to a higher degree of price stability, and this had significant effects on limiting inflation. In addition, it is much easier to compare prices across national borders when all countries have the same currency. This increases competition on the market because consumers can find the cheapest options elsewhere. The charges for a currency exchange have decreased as well.

Globalization has led to drastic economic growth and helped to reduce poverty for many developing countries, and has in many of these countries.

Disadvantages:

The downside of a single currency which is one of the indirect impacts of globalization was seen in the financial crisis in 2008. All countries in Europe were affected to a greater or lesser extent. This was due, inter alia, to the single currency and the extensive trade between countries. This shows that the dependency of the countries was considerably grown .

Likewise, the spread of large multinational companies, outperformed many smaller companies both in developed and developing countries. As a response to this, new movements such as Fair Trade have arisen. They fight for better and fairer relationships between the smaller and local businesses. These movements are still lagging behind their multinational competitors, but their impact seems to grow bigger, as the consumers become more conscious.

Trade and work

Since the beginning of globalization, Silk-Road has been one of the main routes in the world community since the beginning of trade. From ancient times trade to industrialization and to current technological developments, globalization has been growing gradually. Todays technological developments refers to a huge industry that has linked the world even closer together.

Advantages:

Globalization and developments in technology has made it possible for anyone in any country to order anything from virtually anywhere. This, of course, means that international trade growth caused that the range of goods in the different countries has been significantly increased.

Today you can buy almost anything you can imagine on the internet and it will be delivered to your doorstep. Products that used to be very expensive or rare have become available for everyone. Enterprises like Amazon and Paypal have made it possible for anyone with a computer to order anything from anywhere. With the introduction of online banking and debit cards, you have more options with money than what you had before. Cash flows across national borders have a very big impact on the world economy and have a direct effect on globalization.   The percentage of transactions with physical money is therefore very small.

Increased immigration is partly a consequence of the free movement of workers, ie people moving from one country to another to work. Many of these people send money home to their families in their home country.  They can work at a much lower hourly rate and therefore more attractive to employers, while their family in their home country increases their living standards through these money transfers.

Disadvantages:

The negative consequences of trade can be anything from increased air pollution to greater unemployment in the developed countries due to outsourcing to developing countries. Outsourcing means that the production of goods and products is moved to another country where they can be manufactured cheaper. This also means that the countries that are outsourced become ‘filled up’ with polluting plants. Often the requirements for responsible environmental policy are inadequate in these countries. The workers in these countries have much worse working conditions. When a company outsources, the original workers lose their jobs and this leads to increased unemployment.

Another disadvantage is that the class differences in the poor countries are growing. Some companies in these countries can follow developments, and therefore push the smaller companies that are not equally keeping up with the global changes. This means that jobs created in the developing countries by a few dominant companies that can produce the desired products. The small businesses are therefore under pressure and it impedes the overall growth of the developing countries.

Increased pollution is also a consequence of the explosive increase in global transport. This applies to both transport by air, rail and, not least, shipping. About 90% of world trade goods are transported via ships. The remaining 10% are shipped via aircraft, trains and trucks. All these modes of transport affect the environment negatively, and the more international trade we have, the greater the negative consequences for the climate.

LEAVE A REPLY

Please enter your comment!
Please enter your name here