The Positive Aspect of Globalization
The Positive Aspect of Globalization
The Positive Aspect of Globalization
Globalization has a positive side as well. Supporters of globalization argue that it is good and
beneficial. Some of their arguments are listed below.
• Globalization has created the concept of outsourcing. Work such as software
development, customer support, marketing, accounting and insurance is outsourced to
developing countries like India. So the company that outsourced the work enjoys the
benefit of lower costs because the wages in developing countries is far lower than that of
developed countries. The workers in the developing countries get employment.
Developing countries get access to the latest technology.
• Increased competition forces companies to lower prices. This benefits the end consumers.
• Increased media coverage draws the attention of the world to human right violations. This
leads to improvement in human rights.
It would be rather difficult to discuss the extent of the positives that globalization
has had on the world at large. But still, here are some of the positive effects of
globalization and the positive impacts they have had on so many demographic
segments of society.
Increased Competition
One of the most visible positive effects of globalization is the improved quality of
products due to global competition. Customer service and the 'customer is the king'
approaches to production have led to improved quality of products and services. As
the domestic companies have to fight out foreign competition, they are compelled
to raise their standards and customer satisfaction levels in order to survive in the
market. Besides, when a global brand enters a new country, it comes in riding on
some goodwill, which it has to live up to. This creates competition in the market and
a 'survival of the fittest' situation.
Employment
With globalization, companies have forayed into the developing countries and
hence generated employment for them. But it is one of the positive and negative
effects of globalization, depending on the point of view you wish to see it from. It
has given an opportunity to invest in the emerging markets and tap up the talent
which is available there. In developing countries, there is often a lack of capital
which hinders the growth of domestic companies and hence, employment. In such
cases, due to global nature of the businesses, people of developing countries too
can obtain gainful employment opportunities. But the developed countries have lost
jobs on account of this movement of jobs to the developing world and hence it is a
pinch felt by people in the First World.
Foreign Trade
While discussing the positive effects of globalization, how can I leave out the impact
of foreign trade on an economy. Comparative advantage has always been a factor
even in the old times. While trade originated in the times of early kingdoms, it has
been institutionalized due to globalization. Previously, people had to resort to unfair
means and destruction of kingdoms and countries to get what they wanted. Today,
it is done in a more humane way, with mutual cooperation. People who operate in
uncivilized ways, now have to face the WTO and other world organizations that have
been established with a view to control and regulate the trade activities of the
countries.
Spread of Culture
The positive effects of globalization on culture are many! Not all good practices
were born in one civilization. The world that we live in today is a result of several
cultures coming together. People of one culture, if receptive, tend to see the flaws
in their culture and pick up the culture which is more correct or in tune with the
times. Societies have become larger as they have welcomed people of other
civilizations and backgrounds and created a whole new culture of their own.
Cooking styles, languages and customs have spread all due to globalization. The
same can be said about movies, musical styles and other art forms. They too have
moved from one country to another, leaving an impression on a culture which has
adopted them.
Spread of Education
One of the most powerful positive effects of globalization on women and men both
is the spread of education. Today, you can move in the search of the best
educational facilities in the world, without any hindrance. A person living in US can
even go to another continent for a new experience and some courses which one
may not find in the home country. If one is interested, one can even get a
specialization in subjects indigenous to a country and spread that knowledge to the
home country. A good example of that is how the American managers went to Japan
to learn the best practices in the field of mass production and incorporated that
knowledge in their own production units.
Opponents of globalization point out to its negative effects. Some of them are listed below.
• Developed nations have outsourced manufacturing and white collar jobs. That means less
jobs for their people. This has happened because manufacturing work is outsourced to
developing nations like China where the cost of manufacturing goods and wages are
lower. Programmers, editors, scientists and accountants have lost their jobs due to
outsourcing to cheaper locations like India.
• Globalization has led to exploitation of labor. Prisoners and child workers are used to
work in inhumane conditions. Safety standards are ignored to produce cheap goods.
• Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant
dread of losing their jobs to competition. Increased job competition has led to reduction
in wages and consequently lower standards of living.
• Terrorists have access to sophisticated weapons enhancing their ability to inflict damage.
Terrorists use the Internet for communicating among themselves.
• Companies have set up industries causing pollution in countries with poor regulation of
pollution.
• Fast food chains like McDonalds and KFC are spreading in the developing world. People
are consuming more junk food from these joints which has an adverse impact on their
health.
• The benefits of globalization is not universal. The rich are getting richer and the poor are
becoming poorer.
• Bad apects of foreign cultures are affecting the local cultures through TV and the
Internet.
• Enemy nations can spread propaganda through the Internet.
• Deadly diseases like HIV/AIDS are being spread by travellers to the remotest corners of
the globe.
• Local industries are being taken over by foreign multinationals.
• The increase in prices has reduced the governments ability to sustain social welfare
schemes in developed countries.
• There is increase in human trafficking.
• Multinatonal Companies and corporations which were previously restricted to
commercial activities are increasingly influencing political decisions.