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.