Free 538 words Essay on Positive and Negative effects of Globalization for school and college students.
Globalization is helping the world in more ways than we know of. It is making the technologies ,businesses, ideologies, and philosophies to go beyond and spread across the world benefiting everyone involved in the process. It is breaking the boundaries and allowing the countries, economies,cultures and societies to work holistically and collectively. However, there are negative effects of globalization too at the same time. Here is the list of the pros and cons of globalization:
Pros-The positive effects of globalization:
The opportunity for free trade: One of the most important benefits of the globalization is the opportunity it allows for free trade. Various companies, not limiting by the import and export restrictions are getting involved in free trade. Free trade between cross countries benefits both economies and consumers by allowing more choices of products and services and better rates . Economies are booming with this free trade benefit of globalization.
Free movement of labor: Globalization allows workers to use their skill sets appropriately and can move to other countries freely to avail job opportunities as per their caliber and skills. This also benefits the overall job market. To put this in perspective, there are various examples of free movement of labor in the European union and other western countries.
Problem-solving: Because of shared financial interests involved, Globalization allows governments and big corporations to solve the ecological and financial problems together .
Lower inflation: Due to globalization, imports becomes cheaper and global competition keeps the inflation in check.
Benefits lesser develop nations: Foreign direct investment helps lesser developed nations increase their investment through jobs and other financial instruments.
Specialization: Other than what they do and produce best, countries can benefit from others expertise thus bringing international integration.
Cons-The negative effects of globalization:
Lack of skilled labor or ‘labor drain’: One of the downsides of the Globalization is the fact that with free movement of labor across countries, it is getting difficult for countries with limited job opportunities to encourage the skilled workers to stay on their own and help the economy grow. Better job options and pay package is attracting these skilled labors to move and work with them instead of their own.
Tax evasions: This comes as a huge con of the globalization. Because of the fact that big companies can freely trade with other countries, they often exploit tax laws by evading taxes. This ultimately makes the consumer suffer by making them pay higher taxes for consumer products.
Effects of other economies: Globalization can easily affect the economic problems of one country to affect another in the form of recession, price fluctuations etc.
Diluting the environment: Due to many nations involved, some with less stringent rules and regulations to safeguard pollution and deforestation, the environment suffers greatly due to production at various places.
Increased unemployment: due to outsourcing by the most developed nation like the US to the lower wages economies, Globalization does increase the unemployment in these countries.
It is important to understand that the Globalization is the concept to propel shared values, practices, and benefits economies at large and hence we as a society needs to be conscious in our efforts to make the best use of Globalization.
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