Effects of Globalisation


Globalization is a highly dynamic process of growing interdependence among nation - states with the implication that issues are becoming global rather than national and they demand global rather than national attention.
The process of globalization is sweeping across the world turning it into a “global village”. Through the modern information technology, globalization is fast bringing the vast diverse countries into a truly global village.
In another development, globalization has engendered the emergence of giant multinational corporations with branches in many countries of the world. It has also engendered what is called new international division of labour whereby the production processes of goods and services have become globalised. Giant multinational corporations are deeply involved in this production process

National governments can therefore no longer make policies and run their countries in isolation of the rest of the world. International organizations like the United Nations, the Commonwealth, the European Union, the International Labour Organization, the World Bank and the International Monetary Fund and a host of others today have hands in the running of national governments all over the world. They influence and tinker the policies and choices that national governments make.
Thus, globalization is about:
(i)  An increasingly, interconnected and interdependent world.
International trade and finance that have been growing faster than national income.
(ii) Technologies that have transformed people’s abilities to communicate in ways that would have been unimaginable a few years ago.
(iii) Global environment, communicable diseases, crime, violence and terrorism.
(iv) New opportunities for workers in all countries to develop their potentials and to support their families through jobs created by greater economic integration.
(v) International financial crises.
(vi) Workers in developed countries that fear losing their jobs to lower cost countries with limited labour rights.
(v) Workers in developing countries who worry about decisions affecting their lives that are made in far away head offices of international corporations.
 (vi) Risks and opportunities.

Positive Effects of Globalization

1. Adopting to Globalization increase free trading opportunities between countries. This allows business organizations in developed countries to invest in developing countries.
2. As the communication between the countries becomes open sharing of information became easier due to globalization. This has also contributed to the increase in speed of transportation of products.
3. There is also possibility of less war between developed countries due to globalization.
4. Globalization also boosts the ongoing competition between countries all over the world as well as within any particular country; hence making sure that prices of commodities are lowered to a considerable extent. This is a great chance for all end- users to procure goods at low rates.
5. The increased media coverage helps in drawing attention towards those parts of the world where human rights are violated for the benefit of the rich and powerful. This leads to improvement in human rights.
6. When globalization takes place across a nation, it gets wider worldly exposure in the form of food, movies, art, music, clothing, culture, etc. This is a great way of forming closer bonds with the rest of the world.
7. All developing countries can benefit from the already existing technologies without the need to undergo the stress of developing any particular technology.
8. Globalization helps in bringing different governments together so that they can work together towards achieving common goals; which is a great way of spreading global awareness regarding common concerns and issues.

Negative Effects of Globalization

1. The most common drawback of globalization is that it is widening the gap between the rich and poor; where rich people are becoming richer and poor are becoming poorer.
2. As a result of outsourcing, globalization may deprive an entire country of its jobs and resources. This is because globalization takes jobs away from one country and provides it to another country; hence leaving lots of people without the opportunities that they deserve.
3. Although people belonging to different cultures and countries get a chance to interact with each other, it causes a loss in tradition and values.
4. As species are deprived of their non- native ecosystems, there are increased chances of them spreading diseases and disrupting other natural ecosystems and their native species.
5, If the rules and regulations regarding protection of the environment is less in under developed countries, other developed countries can manufacture products that may harm the environment.

Friday, 22nd Jun 2018, 08:11:29 AM

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