Merits: Economically: Spreads jobs and employment to countries
with high unemployment due to lack of economic development
Q1.What are the merits and demerits of globalization?
Globalization:
Globalization is the process by which the economies of countries
around the world become increasingly integrated over time. This
integration occurs as technological advances expedite the trade of
goods and services, the flow of capital, and the migration of
people across international borders. The term has been used in this
context since the 1980s, when computer technology first began
making it easier and faster to conduct business internationally.
Globalization can also refer to the efforts of businesses to expand
their operations to new countries and markets.
Merits of Globalization:
Imported goods are available. The country can produce what it
produces best and import the rest There is a feeling of an
international economy
Spreads jobs and employment to countries with high unemployment
due to lack of economic development. This helps poorer countries
develop economies they might not otherwise be able to develop. It
brings the cost of products down by bring the cost of labor down by
having people with lower income needs, hence lower salary needs
than people in more developed countries The local industries work
hard to compete with international firms Raw material is available
The standard of life becomes better. More jobs are created. There
is security from famine, disease, etc as international firms
intervene. It brings more nations into the decision-making process
on international issues. This probably leads to better
understanding of philosophies by people of different cultures
Demerits of Globalization:
It puts people in developed countries out of work because they
have higher income; hence higher salary needs and cannot compete
with others in other countries. This creates higher unemployment
that government taxes might have to help out. This harms the
economies of more developed countries bringing down standards of
living. Local industries get dislodged. In times of war, there is a
problem There is political interference and conflicts arise. The
balance of payments is badly affected. Under developed countries
are exploited. It could force nations to take actions that are not
in their best interests for the benefit of other nations, thereby
depriving a measure of sovereignty that individual countries
expect. Definite disadvantage of globalization in developing
countries is that a loss of cultural identity occurs, ancient
traditions are often forgotten, languages get mixed up, and certain
social castes are changed, much to the detriment of the people.
