Meaning of Globalization, Its Advantages and Disadvantages

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Meaning of Globalization, Its Advantages, and Disadvantages

Introduction: The world has getting smaller every moment. Due to Globalization, it looks as if the entire world has grown up as one nation and every person on earth has become a global citizen. 

What is the meaning of Globalization?

Globalization is the process of worldwide integration of economic, financial, cultural, environmental, and communication system.

Globalization refers to a scenario where countries and nations around the world becomes inter-connected and interdependent for meeting their needs, both internal and external, characterized by:

  • advanced transportation system (road, sea, and air) between countries,
  • movement of capital between countries in the form of investments,
  • cross-border transaction of goods and services,
  • wide scale financial transactions between nations,
  • easy migration, movement and settling up of people in foreign countries,
  • inter-exchange of labor between countries, both skilled and unskilled,
  • flow of raw-materials, semi-finished goods, finished goods, and services to foreign countries,
  • flow of resources from one country to another, both material and human resources,
  • massive use of technology including internet technologies,
  • transfer of technology and including defense technologies,
  • international treaties for defense and security tie-ups,
  • international dimension of large business enterprises,
  • communication across the globe, and
  • massive sharing and exchange of knowledge between countries.

What are the advantages of Globalization?

The advantages or merits of Globalization is discussed below in points:

  1. Globalization broadens our minds. We feel that we belong to one world and we are a part of one nation, namely, humankind.
  2. Closer contact with foreign people make us quite familiar with their manners, habits, and customs. The cultures become richer as they come into contact with each other.
  3. Globalization help us shake off narrowness. We get the chance of comparing our country with other countries. In this way, we enrich our manners, customs, and habits.
  4. Globalization help us fight illiteracy and promotes education. It gives us clear knowledge of facts and things.
  5. Globalization help us shed or combat the burning social issues such as child-labor, dowry, etc.
  6. Globalization has helped the global community to fight against poverty. Large non-profit and charitable organizations have launched massive campaigns to fight hunger and poverty. They have successfully done huge fund-raising in this regard.
  7. The benefits of science and technology have reached every corner of the world. People around the world are connected through mobile phones and internet technology.
  8. Globalization has enhanced our knowledge of the world. A merchant can gather valuable information about different commodities in different countries. Firsthand knowledge of people and things is of great importance in international business.
  9. Due to globalization, a political leader can gather much useful knowledge of the people, forms of government around the world.
  10. Globalization contribute in improving international relations and friendliness among different nations.
  11. we can communicate with people all over the world. The human life becomes global. We have a global outlook on life.
  12. Students can study anywhere in the world.

What are the disadvantages of Globalization?

The disadvantages of demerits of Globalization is discussed below in points:

  1. In a way, globalization has contributed towards increasing the gap between the rich and the poor. Rich and wealthy people are able to exercise more control over the national resources through the application of science and technology.
  2. The environment has suffered greatly due of globalization. On one hand, the increase in traffic between countries has polluted the tourist destinations. On the other hand, the poisonous gases released into the air by large industries have caused environmental pollution.
  3. Globalized business have exploited the natural resources of the earth beyond the tolerable limit. Some places on earth, which was once rich in minerals and forests can no longer claim their richness.
  4. Globalization tends to make the world a more homogeneous place. As a result, many communities failed to preserve their old tradition, custom, and culture. Being attracted by the culture of developed nations, many people in under-developed nations have shed their traditional dress, food, and rituals. This is yet another disadvantage of Globalization.
  5. Local businesses, hand-loom industry, Cottage and small-scale industry suffered a lot due to globalization. The highly specialized and efficient multi-national companies take advantages of large-scale production and put products at throwaway prices. The local industries could not compete with their global counterpart.
  6. The global economy is now inter-connected. The economic downfall of one major economic nation adversely affects the entire global community.
  7. Globalization has caused specialization of labor. On one hand, there is an increase in demand for skilled labors. However, it has caused enough disadvantages for the unskilled labor group. There are few employment opportunity for unskilled labors in a global environment.
  8. The more technologically advanced countries are able to sell their products to less-developed countries. Hence, the less developed countries become dependent upon the superior nations.
  9. The adverse effect of globalization is not restricted to financial and economical imbalance. Last century has witness spread of diseases from one country to another country. Diseases spread to local places when a diseased person from a foreign country comes in contact with local inhabitants.
  10. Globalization is responsible for the emergence of large number of multi-national companies. Very often, it is found that they do not provide good working condition to the workers. Further, forests have been cut for setting up large industries. The industrial discharges have widely contributed towards environmental degradation.
  11. Globalization can pressure us to act in a certain way.

Conclusion: In spite of so many disadvantages of Globalization, one must admit that no country can afford to ignore the wave of Globalization. Globalization, thus, is a reality. However, adequate care, caution, and measures should be taken to mitigate the ill effects of Globalization so that every nation can take the fullest advantage of Globalization.

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