Group 1 – IB Raleigh – Globalization: Pros and Cons

Globalization represent the opening of the world in economic , communication, Finance and lot of other aspect of the world today. People today need to be aware of the golbalization because nobody stop it. It is already well developed and more and more exchange between countries are hapening every years. But this phenomenon is subject to some criticizes , globalization can be seen as bad for the economy of a country and those are the reasons:

  • Information is more and more connected, nothing can be hide in nowadays world. Private life becomes public life, this is a consequence to the globalized world.
  • Concerning the economy, because everything is connected, when a country suffers a crisis, consequences reverberate to others such as for instance the subprime crisis.
  • Connected to others lead to failures. Everyone is dependent to everyone. When a country is sick, others suffer repercutions. Globalization is good in many ways but it structures a dependency between governments, economies, trades…etc
  • Competitivness is stronger, products turnover is huge….globalization increases all aspects of economies in good and in bad ways.
  • The competitivness leads countries or companies to look for profit instead of looking for the consequences on the environment.
  • A globalized world is a place without border which means there is less and less tradition. Specificity of countries is disappearing, culture is becoming global.

All this negative aspects of Globalization do not represent the overall opinion and it have lot of good aspect of globalization such as :

  • Globalization developed job creation all over the world. For example  big companies  can offshore their work in order to be more competitive and in the same time create job in less developed countries
  • It developed the communications tools also and now almost everyone in the world can be well informed about foreign news.
  • Thanks to globalization there is more and more innovation and new ideas from abroad
  • It developed exchange between different cultures and increase the open-mindness of people. Now, people are obligated to work with people from different culture.
  • It make it easier to make trade between countries all over the world

As a conclusion, globalization proved in many ways the progress it can generate for a country. Small countries took there chances to grow thanks to globalization. Some of them are now potential competitors in the world stage, where Triade countries had the monopoly. So thanks to globalization, rules have changed and everyone has a chance.

Yet, globalization allowed small actors become bigger and faster but lead them to an uncontrolled economy. Everything goes fast and conduct to generate unstable economies.

 

12@Raleigh – Globalization : Pros and Cons

Globalization is a fact and is part of our daily life and impact all our decisions. But can we really say that we are against this worldwide phenomenon or we really approve all of its patterns? The answer is not that clear and easy to determine. However, it is possible to discuss about the benefits of globalization and points that should be improved or fought.

Pros:
– Share of knowledge and technologies
– Peace can be maintained, international organizations
– Business development: business can be created everywhere
– Global mobility, people can travel easily
– Business competition, customers have wider choices of products and services
– New markets access, emerging markets
– Cross cultural environment, making people more open-minded
– People can communicate and work together at the same time in different places in the world
– Poor countries can be helped though international organizations such as the FMI.

Cons:
– Businesses are very interdependent. A crisis in the US can have consequences worldwide.
– Spreading of disease from a region to another.
– Americanization of the world. This is hard for local culture to resist.
– As the global production of food and industries are increasing, we need to pay attention to our resources + it creates environmental issues due to the large amount of production.
– Increase of disparities between those who took advantage of globalization and those that are too small to catch there late.
– Competition can be hard for local business. Little producers has to resist against large retailers

Sophia-81-LFM:Globalization-Prons and Cons

Globalization is main developmental tendency,  it is a double-edged sword. Because of globalization, the competition among the  countries is extraordinarily intense. It takes positive and negative effect both.

Economist consider economic globalization takes many benefit to international trade and international economy. Especially for developing countries.

 

Pros:

  1.  It broaden market for companies, they cloud sell their products abroad, the profits they gain that is more than before. Also people have a wider range of option of goods.
  2.  Overseas company brings new technology, management experience and innovation.It promotes the local companies that improve themselves.
  3.  It decreases unemployment rate, meanwhile it offers more jobs to people.
  4.  Competition keeps price of products relatively low, inflation is less occur.
  5.  With globalization, there are more communication between countries, the relationship becomes more close, people get to know more cultures about each other.

 

Cons:

  1.  Globalization accelerate development of economy, hence it has a huge negative impact on environment indirectly. Enormous demand of market give rise to air and water pollution seriously.
  2.  Because of large requirement  of market, the quality of products is decline, it influence satisfaction of clients.
  3.  The huge capital inflow is easy to cause debt burden, it could be lead to international debt crisis.
  4.  Foreign-funded enterprise has an impact on national industry, it takes challenge to local companies.

 

Although, there are some cons of globalization, we still believe the positive is more than negative.

Group 39 – IB Sophia – Globalization: Pros and Cons

PROS

  1. Internationalization of firms
    1. Any company can go beyond its borders for establishing itself to get a greater profit and the advantage is on both side for the company being more profitable and the offering the public to enjoy a good intercultural
  2. Getting to learn other culture
    1. Each country will learn for the other country’s’ culture and we can say it is an mingling of culture where people don’t think as the other country people as aliens
  3. Foreign Direct Investment
    1. Developing countries take advantage of globalization as they have many foreign countries having directly investing in one unit or the other which rises the country’s GDP
  4. Access to new markets
    1. Doing exports they have an option to sell their products in any market around the world.
  5. Outsourcing of firms
    1. Multinational companies often outsource themselves to the developing countries to make a bigger profit

CONS

  1. Inequalities
    1. Globalization makes the rich richer and the poor still poorer. This phrase just does suit only to the individuals also to the countries.
  2. Global warming
    1. Increase in globalization has made to destroy the natural resources for using them in the manufacturing units which is being a serious issue
  3. Less Job security
    1. In the developed countries people’s job is in stack as most of the companies do outsourcing to the developing countries for less wages and more profit for themselves. Well most of them have lost jobs in the developed countries. Well it has both pros and cons
  4. Instability in the global economy
    1. There is an hyperinflation when due to globalization which causes less stability in the global economy
  5. Loss of cultures
    1. Globalization has an effect on the cultures as due to this people start becoming more attractive to the new culture and lose their culture’s identity.
  6. Affects local market suppliers
    1. It obviously has an bad effect on the local market as companies which globalization have a brand name and people afford the same products with the same quality even at a higher price just because of the brand name.

Group 2 – IB Raleigh – Globalization: Pros and Cons

Globalization has a direct impact on develop and developing countries. Opinions about it differ and it is very hard to take position because globalization lead to advantages and disadvantages. Let’s see the pros arguments cons arguments. 
Pros :
• Prices of products are lower due to competition and scale economy
• More opportunities for people (jobs, films, music, sports ect.) and for companies (new markets, being able to relocate to decrease production cost and be more competitive ect.)
• Technology is spread worldwide. Companies that relocates to developing countries transmit their technology
• It promotes access to knowledge, information and innovation

• Decrease of cultural barriers, you can travel without being too disoriented and find your home product abroad
• It allows foreign people to invest in local companies

Cons :
• Products become obsolete very rapidly
• It increase competition, hard for new and/or small companies to compete with international companies
• Tendency to increase inequality inside a country and among countries. The poor becomes poorer and the rich become richer.
• An important event happening in one country can impact all the other countries which will not be affected if globalization did not exist (war with the price of oil, financial crisis ect.)
• It has a bad effect on environment due to transportation and also because companies need to be very competitive so sometimes they do not take care of their environment
• Loose of countries culture : people have a tendency to think the same thing

Group 19 @ Paris – Pros & Cons of Globalization

Researches we made for our group report gave us food for thought on what globalization is all about. We realized that globalization is a phenomenon that cannot be stopped, and there necessarily will be winners and losers. Economic integration and free trade have lead to an irreversible movement towards economic globalization. However, global sports events – the topic of our report – made us aware of the inequalities in the profit growth generated by globalization were not the same for all countries.

First of all, globalization promotes global economic growth. Jobs are created, and it makes companies be more competitive and consumers may access to lower prices, great choices of goods. As a result, globalization allows for a more efficient allocation of resources worldwide and increases consequently the size of national income “pie”, according to a IMF working paper on effects of globalization on Labor’s share in National Income, by A. Guscina in 2006. Globalization also spurs to key innovation and technological development. Indeed, the spread of know-how comes into developing countries due to globalization. For instance, the European antibiotics are invading the Indian markets and improving the life expectancy of Indian people. Besides, globalization raises capital investment flows thanks to companies that have invested in developing countries like Brazil and India. Those who perform attract a lot of FDI and push up the reserve of foreign exchange.

But, on another hand, globalization implies social injustice and unfair working conditions. Nike knew an international scandal in 1996 when press revealed that Nike employed children in Bangladesh in very alarming working conditions with a photo of a boy sewing Nike soccer balls.

In a globalized word, local industries are jeopardized. It seems impossible for them to compete with big corporations like Yahoo, Visa, or, who have a GDP higher than many nations, according to B.Trivett for Business Insider. For instance, Wal-Mart revenues were on par with Norway’s GDP.

Furthermore, trade liberalization led to the deregulation of the financial market. It creates speculation by financial institution and contagion to a country to another. The example of the collapsing in the market for sub-prime mortgages in the United States highlighted fragilities and dysfunctions of the financial markets and institutions in the United States and globally.

Group 3 @Raleigh: The Pros and Cons of Globalization

Some critics believe that Globalisation leaves the poor behind, others think that it offers opportunities to expand legality and liberty. Here is a non-exhaustive list of some pros and cons of Globalisation:

Pros:

  • Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster.
  • Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth.
  • An open economy spurs innovation with fresh ideas from abroad.
  • Export jobs often pay more than other jobs.
  • Unfettered capital flows give the U.S. access to foreign investment and keep interest rates low.

Cons:

  • Millions of Americans have lost jobs due to imports or production shifts abroad. Most find new jobs–that pay less.
  • Millions of others fear losing their jobs, especially at those companies operating under competitive pressure.
  • Workers face pay-cut demands from employers, which often threaten to export jobs.
  • Service and white-collar jobs are increasingly vulnerable to operations moving offshore.
  • U.S. employees can lose their comparative advantage when companies build advanced factories in low-wage countries, making them as productive as those at home.

Group 5 @ Lille: debate pros and cons of Globalization

Globalization boils down to the worldwide extension of the market economy. It’s an integrating process of economic, political and cultural system across the globe. It brings enormous impacts on economics, social life, political system, environment and culture.
Pros:
1. Promotes global economic growth by create free trade area. It also provides developing countries, through infusions of foreign capital and technology, the chance to develop economic.
2. An open economy spurs innovation with fresh ideas from abroad
3. Support the movement of work force, more & more skilled & unskilled labor are migrating to the developed economies, in the wake of increased job opportunities
4. Globalization enables worldwide access to sources of cheap raw materials, and this enables firms to be cost competitive and gain benefit from economies of scale
5. Reducing cultural barriers, globalization brings increased interaction and adaptation between cultures.
Cons:
1. Increasing the income inequality and widening gap between richer and poorer , the poorest countries: >25% of world population, earn only $2 per day
2. Globalization uses up finite resources more quickly, for example, after joining WTO, coal use in China was rising 150% (from ~ 1 bil MT in 2000 to ~2.5 bil MT in 2010). It also cause the global warming
3. Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages and poor living and working conditions), as well as a lack of concern for the environment, mismanagement of natural resources, and ecological damage
4. Globalization is viewed by many as a threat to the world’s cultural diversity and loss of nation identity
5. Globalization had led to the thread of losing job due to imports or production shifts abroad
Globalization has both advantages and disadvantages, but it will not disappear. Therefore, it is important to learn how to reap the benefits and minimize the cons of globalization.

Group 111 – Sophia – Pros & Cons

Globalization is a worldwide set of phonomenons that create more and more links between economies. Countries, companies and employees play all a role in this game. But this acceleration of interactions does not imply a homogeneous development neither stability for all the stakeholders. Seeing that, there are obviously winners and losers. What are the pros and cons of globalization?

Liberalization is a key lever for progress and growth. The figures prove that global poverty is reducing. Plus, emerging countries have more and more access to technologies, which is conducive to their economic development. However, it makes it ever harder for laggards to catch up. Companies that are not efficient enough have little chance to resist fierce competition, and jobs can be vanished.

What with human flows between countries and virtual interactions on the web, cultures are more and more interconnected, and physical boundaries collapse gradually. Data transmissions have never been so fast and so easy through the Internet. As a result, we get access to information from the whole world. The flip side of the situation is that it can lead to conflicts of all types. For instance, several extremist Islamist groups struggle against the American softpower.

Consumers in both developed and developing countries benefit from a rising number of technologies in all sectors – transports, energy, communication, media to name but a few. Eeconomically and socially speaking, this is one aspect which is at the core of development. Is this model viable in the long term nonetheless? We are living in a finished world, and so global growth is naturally limited. States, companies and people should take these limits into account, and take steps to preserve resources.

It is now easier to set up a business. Business development is supported by government in many countries, and managers have now a lot of tools to launch a new product or to provide a service cost-effectively.
However, the global financial system has been really deregulated. Not only have financial crisis gone widespread, but they have also become more frequent and more harmful since the late seventies. They easily affect the businnes’ health in the short time, especially at the local scale.

All things considered, globalization is a great source of opportunities, but players should take it up with a vision of sustainable development in order to both limit and offset its disadvanges.

Group93@Sophia – Debate : Globalization, The Pros & The Cons

Globalization has a lot of definitions which tend to have the same meaning: it is “the worldwide movement toward economic, financial, trade, and communications integration”. There are also many aspects involved in this movement as it involves trade, transactions, migrations, investments, knowledge. The technological progress has changed the rules of the “game”. How could you imagine 50 years ago that we could be able to talk face to face with someone being at thousands of kilometers thanks to some inventions like Skype? How could you imagine that everyday people would cross the Atlantic in less than 10 hours? Thanks to the transport revolution, free movement and mobility have enabled openness to new cultures and countries. People now can travel easily all over the world and share knowledge.

However this share of culture and knowledge can lead to a “standardization” of the culture: in some places of the world, people are losing their identity! We could notice a global loss of local cultures, traditions, dialects, over the past years. There is an economic gap between the richest and poorest countries and the richest tend to influence the way of life of the poorest as they can export their culture more easily, bringing a “cannibalization” risk. A culture can make another disappear. Moreover it is often done in a non-sustainable way as an important part of this cultural integration is led by multinational companies trying to make profit. As an example you can find natives of remote villages of the Amazonian forest drinking Coca-Cola. Multinational companies have now more power than some nations! Their turnover is more important than the GDP of the last ones.

Policies have followed technologies as borders have been opened for instance in the Schengen area. This phenomena allows exchanges of capital, workforce and raw materials between the countries. As markets got opened, companies have experienced unlimited opportunities to grow. Globally the world has seen an improvement of its living standards. Indeed this new economic boom has led to a decrease of unemployment rates, a raise of the salaries and consequently the eruption of a new middle class in the emerging countries. The Third World countries have also developed a lot as many of them are no longer only exporters of raw materials. Emerging and poor countries are following the “Western” path. Apart of this, we could observe the better political stability that the Globalization process has brought in the world. “Westernization” drives the spread of democracy and human rights all around the world thanks to Education, NGO’s and so on.

But is really Globalization beneficial for all the countries at the same scale? The interdependence makes some of them more vulnerable to global crisis. Emerging countries have lower labor costs and this is a huge competitive advantage since Trade was made easier. Lower labor costs mean lower prices for the consumer so companies of the developed countries have to deal with this and they sometimes decide to outsource in order to avoid bankruptcy. It leads to unemployment. The benefits of Globalization are not for everyone. Actually it increased inequalities between and within the countries, cities and countryside. The wealth gap shows that the positive effects of Globalization have not been distributed equally. More than that, the economic growth has not been followed with a proportional advance of social rights in many parts of the world. Many borders got open but some remain closed. Illegal immigration has increased as people know better than before that they can have a better life with better socio-economic situation elsewhere.

Despite the positive sides of having a globalized world with people moving everywhere, it is also important to remind that Terrorism is also included in the process. We open borders not only for “good” people. So terrorists can also unify, exchange ideas and take actions easily across countries. Some extremists want to implement by brute force their doctrines not only at home but everywhere. People travel more than before, consequently there are more risks of rapes or attacks. The increase of terrorism also increases the danger for people travelling because of the instability of some regions of the world.

Finally let’s not forget the environmental damage that has come with the Globalization process over the last decades. More and more species disappear each year because of mass consumption & exploitation. The developed countries tend to protect their technological advances to remain competitive but by doing so they let emerging countries develop themselves by using a lot of polluting industry. The Tourism industry is developing faster and creates a mass Tourism which can badly affect the eco-system. The global warming is today a major concern for the entire world and the lack of rules and sanctions to fight it have been underlined. The environment being a common interest, companies and governments are taking a step together toward ecological awareness. Today we know that tackling global warming will only be possible if accompanied through the years by a sustainable development.

Globalization is already here and we cannot change the facts. However, as students in Tourism, we will be actors in the world of tomorrow. Although the globalization movement has begun many years ago, it is still a moving and growing process that can be controlled in a sustainable way. We know what are and will be the consequences of a non-sustainable development and this is why today we can say YES to a globalized world but ONLY under certain conditions.