Globalization advantages –
- Helps boost the average growth rate of the country’s economy
through improving in allocative efficacy and efficiency of the
resources
- It increases labor productivity and reduces capital-output
ratio
- It makes way for eliminating in-efficiency in the production
system.
- In its absence, makes the production system careless about
cost-effectiveness
- Attracts foreign capital as well as foreign updated technology,
improving the quality of production.
Disadvantages –
- Leads the way to redistribute the economic power at global
level which leads to dominance of rich-powerful countries over poor
nations
- Results in more imports than exports resulting in growing trade
deficit and balance of payment issue
- Even though Globalization promotes technological adaption to
increase productivity, much of it has resulted in loss of
jobs.
- Small scale industries cannot withstand competition due to MNCs
bought by globalization.