Advantages of Globalisation

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ADVANTAGES OF GLOBALISATION

Globalization is the process by which states become interdependent on each other on all

spheres of life. It is a process where countries go global by adapting universal

characteristics involving human race. It is therefore the process of uniting people of the

world into one unit with universal characteristics. This characteristics include; systems of

education, politics, democracy, economy among many others. Through globalization

economies, civilizations and societies become integrated into a globalised arrangement of

political ideas.

In a global world there is free flow or movement of improved technology. Technologies

can be new discoveries, inventions and innovations. Technology built or discovered in

one continent is shared for use or exploitation in other countries. Therefore with the

advancement of technology developing countries have developed technological know-

how and this has lead to improvements in the industries. Most industries in the

developing countries are now able to work effectively, improving efficacy and makes

works easier. This saves a lot of time wasted by ineffective machines leading to increased

profits and earnings.

With globalization there has been establishment of multinational or transnational

corporations. This shows there is an increased investment in all nations across the world.

This multinationals also are responsible for employing a large number of individuals

from the investor states therefore reducing high levels of unemployment in thisdeveloping countries.

Globalization leads to high investment levels and therefore increased wealth. Wealth is

generated through economic gains of globalization.

The gains have increased access healthcare and water. This consequently has a direct

effect to life expectancy levels. Research conducted reveals that more than eighty-five

per cent of the population is expected to live for almost sixty-eight years and above. This

therefore demonstrates that globalization has a direct effect on access to healthcare and

stressing the need to access healthcare services

Lower Marketing Costs: If you are to consider the lump-some cost, then, yes, it is high,

but the same cost goes even higher if the company has to market a product differently in

every country that it is selling.

Global Scope: Scope of this kind of marketing is so large that it becomes a unique

experience.



Brand image Consistency: Global marketing allows you to have a consistent image in

every region that you choose to market.

Quick and Efficient Use of Ideas: A global entity is able to use a marketing idea and

mold it into a strategy to implement on a global scale.

Uniformity in Marketing Practices: A global entity can keep some degree of uniformity

in marketing throughout the world.



DISADVANTAGES OF GLOBALISATION

Exploitation of Underdeveloped Countries:Multinational Corporations (MNCs), based in

developed countries, purchase at lower rates the raw materials from backward countries, process

them in their own countries and sell the manufactured goods with big profit in backward

countries.

Increase in Unemployment:The MNCs employ machines to reduce the number of employees:

they are capital intensive rather labor. Further, the governments of developing countries have

started withdrawing investment from industries in the public sector. All this has led to huge

unemployment in those countries.

Widening of Rich-poor Gap:Globalization brings benefits to the rich who are small in number

and keeps the vast majority of people in poverty and misery. It is a game of winners and losers.

Those who are already rich succeed in taking advantage of privatization while the poor and weak

are doomed to suffer.

Harmful Effects of Consumerism:Globalization produces consumerism. People being attracted

by attractive goods and advertisements, want to buy these goods. They would not hesitate to earn

money for this by unfair means. This has resulted in vast increase in corruption and other social

evils.

Adverse Effects on Social Security and Social Welfare:Because of privatization, governments

in many developing countries are withdrawing from the sector of social welfare, and private

companies have entered educations, health and other such fields related to development.As a

result of this, poor people are facing a lot of difficulties.

Harmful Effects on Small Industries and Small Business:In the free economy, the big fish hasgot license to eat the small fish. Small-scale and cottage industries cannot grow in competition

with big ones.

Cultural Homogenization:Globalization would lead to cultural homogenization. Each

nation/society has its own distinct culture, but under globalization the cultures of developing

countries are eroded and they are required to accept the values and norms of developed countries.

Hostile to Humanism:Globalization would kill humanism. It aims at accelerating economic

growth, and economic growth, according to its protagonists, can be quickly attained through

privatization. Pursuit of growth hardly respects human values.

Erosion of Democracy:Globalization has led to the weakening, erosion and even destruction ofdemocracy. Globalization has considerably increased the wealth and power of multinational

corporations and they have tended to interfere with and control the economic policy and politics

of developing countries.

Gender-Insensitive:Globalization is gender-insensitive. Women have suffered a lot under

globalization. In the privatized economy, the interests and concerns of women, particularly of

poor women, have been seriously ignored.



Destructive of Environment:Globalization would destroy environment. In the name of

economic development, environment is blindly destroyed

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Advantages of Globalisation