Globalization is an ongoing process integrating economies, industries, markets, cultures, societies and policies around the world. Whether globalization is good or bad is a question that people around the globe are constantly debating over. The answer depends on which part of the world you stand on, for globalization have different impacts on every ‘participant’. The Good
The good side of globalization is that it promotes open markets which allows businesses to communicate effectively and efficiently between partners; manufacturers, suppliers and customers. It enables local producers to venture into other markets, increasing in profits. It gives opportunities for countries to work with other countries; businesses can expand around the world reaching out to more customers that in return generates more profit. Customers also benefit from this because they will have more options to choose from.
When companies from developed countries do their businesses in developing countries, the cost of production (labor, raw materials, rent, taxes, etc.) is lower as compared in their own country. As costs of production are lowered, profits increase significantly for the companies. This benefits the developing countries as well because money is invested into them and it generate jobs for their people, employment rate increases and they are able to reap the benefits of new technologies without having to go through the development phase which is painstaking and requires a long period of time and a substantial amount of funds.
Governments are also able to work together with each other towards common goals that enable them to understand and tackle situations together, it improves their ability to interact and coordinate and develop global awareness of issues. Not only governments interact with each other, cultures do as well. People are able to learn from each other without having to go out of their own country. There’s greater access to foreign cultures in the form of entertainment, food, fashion, lifestyle, ideas and more. In other words, the world has more choices. The Bad
Globalization is deemed bad because it grows new risks and uncertainties to people on both sides. The effects of globalization on countries can be
predicted but not guaranteed on how it will impact the countries involved. Integration of domestic and foreign markets will intensify competition that might result in the elimination of local companies and products. Imitation will also start to grow which will damage the business of their originators. Companies will face constant pressure with the influx of new competitors, it will cause their products to become commodities and eventually they will have little or even no pricing power.
When outsourcing becomes a cheaper alternative, it may increase the employment rate in one country but in another country, people might be losing their jobs. Globalization will bring cultures together; they will influence each other and begin to meld. This may cause one’s culture to lose its uniqueness and individuality. Globalization brings about a chain effect. If one country is going through a downturn in its economy, countries associated will be affected, resulting in the downturn on multiple economies. The Local Perspective – Singapore
In the local perspective, globalization have benefitted Singapore in many aspects such as integrating itself to the global market, attracting investments from around the world, opening up to immigrants, which augments the domestic population and adopted an export-driven economic strategy which have all helped Singapore achieve a robust and sustained economic growth.
Globalization increased the living standards of Singapore; it allows new technologies and ideas to flow, a globally competitive education system, cultural exchanges and it provide greater opportunities for the locals in the global economy. With Singapore being a small, open economy, the benefits from globalization definitely outweigh the costs for globalization. The Western Perspective – America
In the western perspective of America, globalization is not in the same light as compared to Singapore. American workers have lost family supporting jobs due to flawed trade policies such as the North American Free Trade Agreement (NAFTA). It results to a skills gap in which demand for new skills outpaces supply of local workers and hence increases the demand for foreign workers. When this happens, the population of immigrants will increase to vie with the locals to fill up jobs positions.
This causes friction and millions of US citizens are left jobless. This will be a social challenge for the US
Government as poverty increases whilst income decreases. America being an advance and developed country, the costs for globalization outweigh the benefits she reaps. Conclusion
In conclusion, globalization can be good and bad at the same time. It comes down to whether you’re enjoying more benefits from globalization or you’re paying higher costs for globalization.
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