Question

What are the advantages and disadvantages of globalization, and can the current problem (COVID 19) be effect of globalization and global competition? show your argument?

Answer 1

GLOBALIZATION

Meaning:-

Globalization refers to the trend towards countries joining together economically through education, society and politics and view themselves not only through the national identity but also as part of the world as whole.

Advantages of globalisation:-

(i) Increased free trade between nations.

(ii) Increased liquidity of capital allowing investors in developed nations to developing nations.

(iii) Corporation have greater flexibility to operate across borders.

(iv) Global mass media ties the world together.

(v) Increased flow of communication allow vital information to be shared between individuals and corporations around the world.

(vi) Greater ease and spread of transportation for goods and people.

Disadvantages of Globalisation:-

(i) Spread of materialistic lifestyle and attitude that sees consumption as the path to prosperity.

(ii) International bodies like WORLD TRADE ORGANIZATION infringe on national and individual sovereignty.

(iii) Increase in the chances of civil war within the developing countries and open war between developing countries as they vie for resources.

(iv) Decrease in environmental integrity as polluting corporation take advantages of weak regulatory rules in developing countries.

(v) Increased flow of skilled and non-skilled jobs from developed to developing nations as Corporation seek out the cheapest labour.

Effect of COVID-19 on Globalization.

We know that due to COVID-19 more than 120 countries are suffering they suspended all the economic activities with other nation as to stop the spread of Coronavirus. In that situation Global trade hits badly because no trade means no mobilization of resources between the nations and supply chain also affected. Countries exchange rates falls simultaneously. Breakdown of supply chain means price will also get down which can easily be seen in Global oil market .It also creates unemployment situation specially in developing countries.