What is Globalization in brief?
Globalization is a process of interaction and integration between people and general entities. International technology, trade and laws mostly impact it.
Pros of Globalization
Proponents of global free trade stresses the fact that globalization promotes global economic growth, and foster employment. According to them, infusion of foreign capital and technology permits poor countries to develop economically. Moreover, ideal values are spread out through globalization and enable to diffuse democracy and human rights.
• Easier for companies to find good international workers
• Global mobility for workers (enhance their skills, learn overseas)
• People are more open minded about cultural differences
• Brains working and studying around the globe helps innovation
• It helps education by sending students overseas
• Decrease of ignorance thanks to information sharing
• Opens new markets for businesses
• Availability of wide range of products
• Increases the amount of foreign direct investments
• Competition between companies: the average quality of products is better
• Improves transports (cost and speed)
• Globalization helps protect human rights: interconnection between economic freedom and political freedom
• It fosters the growth of democratic governments
Cons of Globalization
But globalization has obvious cons that have been raised numerous times. Evoking Globalization cons led one to raise questions about employment, labour, economy, finance, politics etc.
• Wealth discrepancy between Western countries and developing countries has increased
• Disorganization of the financial system, which is no longer, linked to real figures
• Fierce competition: difficulties for local businesses
• Merging of black markets and forgery
• Hyper-interdependence between countries: snowball effect
• Negative outsourcing: use of cheaper workforce in merging countries which leads to inequality, because of fierce competition
• Lower labour standards
• Loss of cultural specificities
• Pressure on little cultural groups: westernization of the world
• Threat for sovereignty of the nation-state by undermining national laws and regulations by claiming world trade and finance regulations