Question

There are both pros and cons of globalization. One of the pros is that globalization improve the global economy by having access to other countries sales and business. This can help bring all the businesses together on a global scale and bridge the gap. I have worked for two auto parts retailers who have decided to go direct to China to import auto parts. In both instances, department was created in order to manage shipments, place orders and comply with customs. Many talk about job loss when it comes to importing, trade and globalization , but I have witnessed job creation with global trade. What are the pros and cons to Globalization and International trade?

Answer 1

Pros :

Globalization means the integration of economies. Globalization and International trade has bought some radical changes to the way global economy functions today.

The variois pros of globalization and international trade are:

1) International trade has encouraged free trade with the significant amount of reduction in duties, import export taxes, excise and other sort of barriers between the countries.

2) Globalisation and international trade has tend to promote the growth of economies , reduced unemployment by a large extend , created new jobs , enhanced healthy competition , and lowered the prices of products for customers.

3) The gaps between the countries have been reduced which has resulted in exploitation of opportunities by small economies rich in resources not fing in any other rehion or part. The establishment of MNC's and joint ventures have bought development and innovation in the areas which are underdeveloped.

4) International trade has resulted in expansion of knowledge , information , transparency , and integration of foreign cultures. It has led to world wide communication, open trade , sharing of resources for new projects.

5) Globalization and international trade has resulted in efficient communication between the people of different cultures overcoming the religious and cultural barriers making people to live with coordination.
It has increased the work place diversity and is the reason of asian people working in cooperation with people belonging to west.

Cons:
Globalization is suspected to have done a lot of damage also.
1) The countries underdeveloped and the economies not well off , find it very difficult to compete with the huge competition in the present day. Small startups or companies find it difficult to survive, monopolies take place suppressing the resurgence of small entrepreneurs. The foreign setups results in income flowing to the foreign country leaving the country where business is strated as it is .

2) Globalization is said to have made the rich, richer. While has wirsened the situation for poor and made them more poorer. The workers and the environment hss suffered the most , through exploitation.

3) International trade has increased the selfishness, and thinking about only one's own interest has become common. It has resulted in labour drain , making workers work like machines. People are attracted to higher paying jobs thus migrating to cities more advanced than their areas , leaving these area stagnant from growing or progressing and the people living their unstandardized.

Thankyou

Hope i explained well.

Sorry for any typing mistakes.

Good luck and God bless.

Add if you want :)