Globalization is an interaction between different economies, societies and cultures through a worldwide network of trade, communication and transportation. Globalization has both advantages and disadvantages on every economy that exists in this world. Globalization affects every country in a very serious manner. According to studies globalization has more advantages over its disadvantages. Globalization leads to exchange of technology between different countries, exchange of weapons for defense, it reduces the fear of war between developed nations, it leads to free trade between countries, it reduces cultural barrier and helps to increase global village effect.
These examples are just a part of the story and there are many more advantageous of globalization over its disadvantages. Globalization is a controversial topic since last two decades; many people believe that globalization has many disadvantages like outsourcing of jobs to other nations, losing cultural identity and exploitation of workers rights. Following is the list of advantageous of globalization and its disadvantages. However, list of advantages of globalization is way longer than its disadvantageous that leaves us to decide that is globalization a boom or a threat?
Globalization leads to exchange of technology from developed countries to other developing nations. Taking an example of America’s technology transfer to India has changed the world. America transfers it’s nuclear, information technology, medicine and machinery technology to India, which brought a boom in the Indian economy. India was known the as third world country but now it is known as upcoming super power after china. Globalization affected Indian economy is a very serious and a good manner. In return India offers US with its call center services. Also, U.S. is outsourcing its manufacturing and white collar jobs to India which saves America tons of billions of dollars every year because of cheap and reliable services provided by India to American customers.
The U.S. shares its army training programs with India and transfer latest weapons to Indian army which is very useful to maintain an army balance in south Asia and also to fight with terrorists. In return Indian army trains American army with jungle warfare tactics. Working out together is a key to success and globalization makes it possible. It is beneficial for both the economies by being interdependent on each other. It leads to rapid growth of both the economies. Globalization leads to reduce tension of war between two or more developed nations. Globalization pacifies international relations. Two countries that trade together are reciprocally dependent to each other. One is interested in selling and other is interested to buy.
The best example is the U.S. and China, China wants to sell and U.S. wants to buy cheap stuff. Even though, China is the biggest threat to the US at this moment, U.S. does not want a war with China because of its national interest. In return U.S. provides China with money and technology. Both the countries are equally and reciprocally dependent to each other. Hence, globalization helps reducing tension of war between developed nations. Globalization leads to freedom to exchange good and capital by free trade policies.
With globalization, companies can manufacture goods at places with low cost labor and at place where there are not many jobs available. For example American companies prefer to outsource its manufacturing plants to India or other Asian countries because of its cheap labor, massive man power available there, very less cost of production and very less or no taxes by their government which results in lowering the cost of the product.
Globalization reduces cultural barrier and makes the global village effect dream come true. Taking an example of America, we know a lot more about other cultures now than what our parents or grandparents knew. We are more open to other cultures. Our minds are more open to other ideas, traditions and this has made it a very exciting time for our generation and for those to come. We eat sushi in lunch or Italian in dinner, all this counts to make us more knowledgeable about other cultures. People on the other side of the world like in India or China watch Hollywood movies, eat peanut butter jelly in breakfast, wear Hollister or American eagle which in a way helps them to understand western culture.
As a result, they overcome their cultural barrier and compete with rest of the world. Now days every culture affects other culture directly or indirectly and making ourselves more and more knowledgeable about different cultures will help us to make our global village effect dream come true. A quote from Pico Iyer’s essay would have worked in this previous paragraph. However, disadvantages of globalization like outsourcing of white collar jobs and manufacturing jobs to developing nations by developed nation’s leads to decent percentage of unemployment in the developed nations.
Also, problems like losing cultural identity and exploitation of workers’ rights are concerning many people in the world. Even though, globalization has many advantages, its disadvantages moves along with it and these disvantages cannot be neglected. Taking an example of world recession, 2008, U.S. citizens lost millions of jobs and the only reason was not enough jobs available in the U.S. because decent amount of white collar jobs were outsourced to India or China. Subject?Bad moves along with good and we should accept it and find a way to get rid of these disadvantages of globalization instead of criticizing it.
Globalization has many advantages and disadvantages, but it’s advantageous like exchange of technology between different countries, exchange of weapons for defense, reduced fear of war between developed nations, free trade between countries, reduced cultural barrier and increase in global village effect overcomes its disadvantages like outsourcing of white collar jobs, exploitation of worker rights and loss of cultural identity. Studies show that demerits of globalization are way lesser than its merits and these demerits can be resolved by imposing some policies. As a result globalization is more of a boom to the world and not than a threat.