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.
- 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.
- Overseas company brings new technology, management experience and innovation.It promotes the local companies that improve themselves.
- It decreases unemployment rate, meanwhile it offers more jobs to people.
- Competition keeps price of products relatively low, inflation is less occur.
- With globalization, there are more communication between countries, the relationship becomes more close, people get to know more cultures about each other.
- 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.
- Because of large requirement of market, the quality of products is decline, it influence satisfaction of clients.
- The huge capital inflow is easy to cause debt burden, it could be lead to international debt crisis.
- 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.