In books and newspapers, you heard many times the word globalization. But do you know its true meaning?Maybe not! So, first of all, know about it. Let’s discuss:
If you check history you can see that goods, services and businesses were limited in territorial boundaries.But today, trade and treaties & agreements happen beyond geographic limitations.Globalization means an enhancement in the movement of services, goods, people and even in people across the world.
Today every country works on improving its economy after the Covid-19 pandemic. There has been an immense impact in all areas from human resources to trade. As a solution, globalization is the only way to develop the economy of the country. The concept of globalization also improves the GDP of the country.
In simple words, globalization allows free flow of services & goods by eliminating trade hurdles between the countries of the world. It may give ease to operate and conduct a business operation in different countries without having national borders.
Countries using concepts of globalisation are allowing accepting and providing advanced technologies, sharing ideas, business and even labours. Moving forward on this smooth path, any country can develop better. But every success path has both benefits and drawbacks. Here we are going to discuss some advantages & disadvantages of globalisation.
Globalisation – Advantages
1. Sharing ideas & technology
Sharing ideas and technology from one country can be beneficial for the growth of the country.It can help you to connect with the world and use their technologies. Globalisation helps to boost the technologies within the country without putting in extra efforts and money. This is only possible when a country borrows and implements the technology of another country. The quality of production can be improved through foreign updated technology, hence steady production and immense profit.
2. Enhances Economic Growth
A country participating in the global economy can enhance their technological developments, international exchange of services & goods and information. It also improves the allocative competence of resources and enhances labour productivity. As a result, improvement in wealth of country, good living standards, elimination of poverty and overall growth of the country.
3. Enhances WorkingEfficiency
Every country can make banking and financial sector efficient & stronger after being a part of globalisation. This can allow opening up insurance companies, and being a part of foreign banks and foreign capital. The countries become self-dependent when they come together to participate in the investments and business at a global platform. They often do trust one another for a certain trade, services & goods.
4. Improvement in Services and Goods
Countries adopting globalization methods can provide better services to their people. Due to the hi-tech progression, services like internet connectivity, mobile networking, electricity & water supply, and various other services have become better than ever.Due to globalization, today you can attain better internet services.
5. Give opportunities to less developed countries
When top-notch companies move forward to poorer countries for establishing infrastructure, the employment of level has grown. Apart from that, people belonging to the less developed country get a chance to showcase their talents & skills in the field of technology, finance, etc. As a result, the living standards & economic growth of people will tend to enhance.
6. Improvement in Infrastructure
Globalisation helps the country to improve their infrastructure, thus they can deliver better services to the people. Having a better infrastructure of an individual country means overall growth of people, services and goods. Only then can it be said that the development of the country comes only from globalization.
7. Offer Services & goods at affordable price
Through globalization countries can easily contact to the advanced technology, thus a country can offer goods & services to their citizens at cheap prices. After involving in globalisation, a country will be able to compete in the international market, promote market strategies and promotes competitions within their country. With an affordable price, a common man can maintain a better lifestyle and adjust their expenses.
8. Growth of the Domestic Companies
Globalisation promotes domestic companies for participating in an international platform. At globally, domestic companies can satisfy the rising demands of the international customer. It promotes companies to make their businesses wider, produces products on large scales. This means more goods & services are available at various price points. No contradiction of supply & demand. Hence, GDP will rise at a growth rate.
Globalisation – Disadvantages
There are several disadvantages of adopting globalisation. Let’s take a look:
1. Risk of the increasing unemployment rate
Countries are not so sure about being a part of globalisation since it creates a situation where people are hard to find jobs. The global market requires skilled workers and advanced technology at a low cost. But the countries where the educational system is not so complex, cannot provide such good solutions in being smart.That’s why the lack of employment has been found in such countries.
Reputed foreign companies often invested in developing countries, but they hired employers from weak countries. The pay-scales of such employers are also very low than the industrialized countries. When an economic crisis occurs, their jobs are at risk.
2. Nature Loss
Globalisation can allow countries to establish factories and infrastructure but they require space enough for that. Cutting of trees, pollution, overuse of plastic damages the environment. Even, various harmful chemicals are used in factories these days, hence bad of health, as well as, polluting the soil, water and air.
3. Business Inequity
The balance of trade meant to be the equal export and import of goods and services from one country to another. Some countries are developed but depend on imports or for export. As a result, issues with the supply chain. The situation can badly affect the suppliers, workers, investors, farmers and logistics operators.
Today every country is ready for globalizations risk and challenges. They planned various policies & practices to limit the negative impact of globalization. Whether you’re an employee or executive in any firm or organization, identifying the risks of the global market enhances the knowledge and prepare for it.
Santosh Kumar, He is a SEO + Blogger have 12 years of experience in writing tutorial, informative and product reviews topics.