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

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