Question

Week 1 Discussion: Chapter 1- Opinion about Globalization

Do you like or dislike the trend of globalization? Support your statement with examples.

Answer 1

Globalization is an economic tidal wave spread over the world like a wildfire. The economies of various countries in the world have connected to one another like never before. One part of the world produces goods and services which are progressively available in all parts of the world. International travel has become more frequent and international communication has become an ordinary thing. However, Globalization has its own positive and negative aspects. Lets see some of the pros and cons of this globalization trend:

Advantage of Globalization:

The main benifit (as per economists) is that, many businesses get desired goods and services for a very cheap price from other countries. Instead of buying in local market at higher cost, company prefers to buy it from outside country where it can be purchased cheaply. China is a very good example here where electronics supply and many other raw mmaterial supplies are available at very cheap price.

Disadvantage of Globalization:

The disadvantage that most people see in globalization is that availability of jobs for locals. Job opportunities can end up getting sent to another country from where services are bought. So local employees have to compete with people from other countries as well who can work for lesser pay. This sometimes become a big issue in employment of locals. Also outsourcing of businesses to other countries affects small scale local businesses as they fail to compete in global market.