Positive and negative effects of globalization

Globalization represents the global integration of international trade, investment, information technology, and cultures. Globalization is driven by policies enacted by the government, which are designed to unlatch economies both domestically and internationally in order to strengthen the development in poor or developing countries in a view to raise the living standards of people. Effects of globalization have created an international free market that has mainly become advantageous to multinational corporations in the Western world, which has affected smaller businesses, cultures and common people. Let us take a look at what these effects are.

Globalization is also a social, cultural, political and legal phenomenon. What are the effects of globalization? This is a question that has been answered all over the world. Social effects of globalization represent greater connectivity among global populations. The impact of globalization on culture has represented the exchange of ideas and values among cultures and created a trend toward the development of a single world culture. Political effects of globalization have shifted countries' political activities to the global level through intergovernmental organizations like the United Nations and the World Trade Organization. As a legal phenomenon, globalization has altered how international law is created and enforced. Here are a few positive and negative effects of globalization;

Positive effects of globalization

1. Increase in employment opportunities

Globalization has influenced the growth of employment opportunities since many companies have set up businesses all over the world. So many people are able to get a variety of jobs without having the inconvenience of moving to other countries to search for employment opportunities. Currently, companies such as Google, Microsoft, Delta, Toyota etc, have their offices in other countries.

2. The effect of globalization on education

Globalization has influenced people to move from one country to another in search of educational opportunities. It has become convenient for students to move globally in search of better quality education, which has led to the integration of cultures. People from poorer countries seeking improved education move to developed countries in order to acquire it. An example is India, students from India are moving to countries like the UK and USA to pursue higher education.

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3. Increase in free trade

Globalization has led to an increase in free trade which has opened doors for investors in developed countries to set up their businesses in developing countries. Multinational companies from developed countries have the freedom to operate in developing countries as a form of increasing their employment opportunities and infrastructure.

4. The faster flow of information

Through globalization, information sharing has been improved and its flow all over the world has been heightened. Crucial information can be transferred from one person to another and between corporations in a matter of seconds. It has influenced the ease of transportation of people, goods, and services all over the world.

5. Increase in the quality of goods and services

As a result of globalization, people have access to the best quality of goods and services throughout the world. Companies have to strive to provide better quality goods and services to the consumer and the consumer has the liberty of choosing whichever product he thinks is best suited for his needs. This allows a person in America to wear clothes made in India and Mexico while watching a football match taking place in England on a TV made in China.

6. Decrease in the prices of goods and services

As the competition in the market has increased due to rapid globalization, producers have to price their products competitively in order to remain in the market. This has become a boon for the consumer as he can get better quality products at cheaper prices.

7. Reduction in cultural barriers

As people move from one country to another, barriers between various cultures tend to decrease. This has resulted in tolerance and openness towards other cultures. This has also facilitated communication between different cultures. It has also led to a reduction in wars as we are today living in one of the most peaceful periods in the history of mankind.

Negative effects of globalization

1. Environmental degradation

Developed countries can take advantage of underdeveloped countries’ weak regulatory laws in terms of environmental protection.

2. Unfair working conditions

Many multinationals have been accused of social injustice by exploiting labor in underdeveloped countries in order to cut costs. This has provided unhealthy working conditions leading to health hazards. Many large companies have also been accused of using child labor in their factories in underdeveloped countries.

3. Fall in employment growth rate

Though the promotion of the idea that the advances in technology and increase in productivity would create more jobs has been a cornerstone of globalization, it has been seen in the past few years that such advances have led to a decrease in the employment growth rate in some developing economies. This can also be attributed to the fact that companies move their production facilities from one place to another in search of cheaper labor, once the workers in the previous country start demanding better wages.

4. Growing disparity between the rich and the poor

Most of the world’s resources are said to be consumed by the richest of the world population. This means that the poorer population only gets to consume very little of the world’s resources. This is a direct result of globalization according to some activists who believe that globalization only serves the rich, whereas the poor have to face its disadvantages.

5. Globalization makes a poor country poorer

Globalization can make the economy of a county collapse, especially countries that struggle due to competition by multinational corporations. For instance, there are countries that offer cheap labor which can never be matched by developed countries. For example, in China, the costs of manufacturing are cheap that even Apple, which is a multinational American company, is not able to resist the temptation of having everything made there and assembled back in America. This kind of practice, which is integral to globalization and rationally unavoidable, can ruin the economies of countries that don’t have the advantage of labor, low wages and other elements such as weaker labor laws, lenient policies pertaining to doing business and willful corruption that often helps industries.

6. Small-scale industries face extinction

Small-scale industries which are indigenous to a particular place face extinction as they do not have the resources or the power that the multinational companies have. As a result, these small industries are unable to compete with bigger companies and they then go out of business. An example is a bamboo furniture-making industry in India. The manufacturers work out of their homes and work hard to make furniture out of bamboo. These workers cannot compete with large companies selling cheap plastic furniture and as a result, their industry faces extinction.

7. The rapid spread of deadly diseases

Deadly diseases such as AIDS or other communicable diseases can spread at a very fast pace via travelers or due to other means as a direct consequence of globalization.

8. Too much dominance is given to a limited number of countries

Globalization isn't without a lot of deficiencies and a few perils. Globalization, especially like industrialization and the previous colonization, can make one nation or district ground-breaking. Whoever gets the opportunity to overwhelm worldwide exchange and trade or has the assets to be the essential provider and not the customer will have a higher ground. Having the world or a significant piece of the world rely upon one country, or a specific gathering of organizations can be greatly inconvenient to the balance of power and influence.

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Effects of globalization in Kenya

Effects of globalization have influenced a lot of change in countries all over the world. Positive and negative effects are taken into consideration. As much as people like to focus on the pros of globalization, it Is also important to note down the cons. Globalization may have strengthened the global economy, but the living standards of people may have decreased from a lack of attention to children and a shortage of food and water around the world. Good or bad, stronger countries are gaining power and wealth in the process and developing countries are suffering from it.

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Source: TUKO.co.ke

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