Question

What is meant by the term “globalization”? What are the positive aspects of globalism? What are the negative

aspects? On balance, do you believe further globalism to be a good thing for our society? Explain

Answer 1

Globalization refers to the free movement of goods, services and people across boundaries and nations to promote integration of national economies into global and international economy. Thus, globalization increases interdependence among nations through promotion of free trade.

Some of the positive aspects of globalization include:

1. Free trade among nations promote global economic growth, helps in creation of jobs, helps in increasing efficiency and competency of domestic firms and it also lowers the prices for consumers and thus increases consumer surplus.

2. It has helps the poor and developing nations to increase their economic growth through infusion of foreign capital.

3. It also increases technological efficiency as infusion of foreign technology takes place in the nation. This improves productivity of the nation.

4. Outsourcing of some of the function to other nations by a large company helps in reduction of cost for the firm and thus helps them to concentrate on core functions.

5.. Apart fro economic benefits, it also increases social intermingling of various cultures.

Some of the negative effects of globalization include:

1. It has increased inequality among nations by making the rich richer and making the non rich poorer.

2. Outsourcing leads to loss of jobs for the developed nations as it increases unemployment rate of the developed nations because some of the tasks are given to developing nations.

3. It has also been observed that large MNCs also try to avoid paying taxes which is harmful for developing nations.

4. There are also issues of copyrights or the technology been copied because of increasing globalization among nations.

Thus, globalization has both its pros and cons for the society. However, the benefits of globalization exceed its losses and most of the nations in the world today are fully integrated with rest of the economies to harness the benefits of globalization.