Question

Discuss the positive and negative effects of globalization. do you think globalization is a mostly positive or negative phenomenon? does everyone benefit from globalization? Explain using concrete examples of countries that have benefited or suffered from the globalization phenomenon.

Answer 1

Globalisation refers to the integration of world economies, where free flow of goods, services, capital, technology and human resources are witnessed. Following are positives and negatives of globalisation:

Positives:

• It makes available variety of products.
• Prices come down, so consumer surplus is maximized. Per capita income of consumer rises.
• Size of market rises, so firms are able to make investment on research and development. in other worlds, economies of scale is realised.
• Monopoly forces do not grow up.

Negatives:

• Income inequalities rise after globalisation.
• Unemployment rises up if any country goes with globalisation. US is most supreme example of such phenomena.
• Globalisation makes a country vulnerable to external shocks. A country loses its control over the external factors.

Usually, globalisation has much more positive impacts, there might be negative impacts in short run, but over the long run, all countries tend to benefit from globalisation.

Over the short run, Most of US jobs and productions facilities have moved of country. Thus, US economy has suffered due to globalisation. it has lost a lot of job to its rivals. Its production facilities have moved to China, Thus, it has led to rise in unemployment in USA.

On other side, China has emerged as one of the largest beneficiaries of globalisation. China has been successful in attracting new investment and globalisation has created huge market for export of Chinese productions. China is largest exporter of manufactured products,