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Globalization

Globalization has become a highly debated issue with many interpretations and approaches. It entails common standards and values across economies but can generate both balance and imbalance with winners and losers. Failure to adapt to globalization risks economic crisis and poverty. While it increases free trade, market access, and cultural exchange, it also risks job losses, cultural control by media corporations, economic disparities, and environmental damage when regulations are not uniformly applied. Every country must confront and adapt to this inevitable process.

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81 views

Globalization

Globalization has become a highly debated issue with many interpretations and approaches. It entails common standards and values across economies but can generate both balance and imbalance with winners and losers. Failure to adapt to globalization risks economic crisis and poverty. While it increases free trade, market access, and cultural exchange, it also risks job losses, cultural control by media corporations, economic disparities, and environmental damage when regulations are not uniformly applied. Every country must confront and adapt to this inevitable process.

Uploaded by

api-515904890
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Globalization

Globalization has become one of the most debated issues of our times. Considering that many of the
approaches to this phenomenon do not have an answer yet, we are still dealing with multiple
interpretations, some even contradictory. The globalization of the world economy entails common
standards and values; it can generate both global balance and imbalance having both winners and
losers. Failure to adapt to the globalization process brings along a series of disadvantages that lead
to poverty and economic crisis. Every country must confront and adapt to this inevitable and
irreversible process that is globalization. Below bullet points are a list of the pros and cons of
globalization.

Benefits

• Global liberalization of capital movements and Increased free trade nations.

• Increased liquidity of capital allowing investors to invest in developed countries to developing


countries.

• Globalization of international financial markets can create wider access to external funding
sources.

• Corporations have greater flexibility of operation outside.

• Competition keeps prices relatively low, and therefore, inflation is unlikely to occur.

• Mass media and increasing global flow of communications allows transmission of vital information
between individuals and corporations around the world.

• Greater ease and speed of transport of goods and people.

• Reduction of cultural barriers.

• Increases in environmental protection in developed countries.

• The spread of democratic ideals and greater interdependence among nation-states.

• Reduce the risk of war between developed.


Barriers

• Globalization creates the possibility of international financial market wider access to external
financing sources. The world economy has become increasingly visible trend deviation of interest
rates relatively high, a phenomenon that leads to an increase in financing costs and international
banking markets, potentially, to maintain or increase in external indebtedness.

• The tendency of developed countries to use as the main instrument of adjustment, competitive
policy by handling exchange rates, is likely to expose developing countries to external effects on the
balance of payments unbalanced and finally, in conjugation with internal factors, on the evolution of
the exchange rate of currencies.

• Increased flow of skilled jobs and skilled non-developed countries to developing countries,
corporations while seeking the cheapest labor.

• Countries are becoming more addiction to other countries for their needs for goods and services.

• The danger of taking over control of media by a handful of corporations that could limit cultural
expression.

• increase the chance of violent reactions against globalization in an attempt to preserve the
national heritage.

• Increased risk of diseases being transported unintentionally between nations.

• Decreased environmental integrity because polluting corporations take advantage of regulatory


rules in developing countries.

•The widening economic disparities (258 people currently holds a rich billionaire possessed equal to
the 2.5 billion people - nearly half of Earth's population). It also mentions the dangers on the
abolition of branches, bankruptcy of banks, destabilizing economic life, including some states.

• The spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity.

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