Positive and Negative Effect of Globalization
Topic: Discuss the positive and negative effects of globalization on the world today. The term globalization is the process of transformation of local phenomena into global ones. It is when different countries start to connect together as a whole, when people around the world are more linked to each other than ever before, when information and money flow more speedily and when goods and services produced in one part of the world are increasingly obtainable in all parts of the world. And it has brought both positive and negative impacts to the world.
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Therefore, in this essay, both the positive and negative effects of globalization on the world will be discussed. First of all, let us look at the impacts that globalization brought to the global economy. Globalization has brought up the world’s economy. Countries move to market sectors that they are better at, which means that the labor in a country is going to do what it’s best at; for example, there is no need for American to do manufacturing when someone in China can do it better. Countries in the globe trade goods with each other, and it hastened the trading rate.
By trading with each other, knowledge and technologies exchanged and was shared among countries; therefore, the world innovated and improved faster. Globalization not only exchanged ideas and knowledge but also created positive competition between countries. Secondly, the trend of globalization also provides the people of the developing countries different kinds of jobs to live their lives and the developed ones a great many benefits. Globalization has created the concept of outsourcing; for example, work, such as software development, customer support, marketing, accounting and insurance, is outsourced to developing countries like India.
Thus, the company that outsourced the work enjoys the benefit of lower costs because the wages in developing countries is far lower than that of developed countries and they can also reduce environmental problems, such as air pollution, caused by the smoke from the factories. And workers in the developing countries get employment; the developing countries also get access to the latest technology. However, the effects of globalization are not all positive. Globalization connected the global economy together.
For the negative impacts, since the markets are all globally connected together when one market falls, the world’s economy collapses. Let us take the United State financial crisis that is currently happening for an example. The US market turned into a disaster because of sub-primary mortgages and the products derived from them. Financial companies started to give out mortgages without checking people’s credibility. Therefore, people who could not afford mortgages also got mortgages. Eventually, the crisis started because people could not pay for the mortgages anymore.
Banks and financial companies have all these houses that people would not buy because no one has the money to afford a new house. Finally, banks and financial companies went bankrupt. US stock markets collapsed. Other countries got affected because the world’s biggest buyer, United State, suddenly stopped buying. World’s economy slowed down and, eventually, the market collapsed. The second negative effect is an environmental effect. After global economy rose, corporations started to produce more and more, because people started to ask for more.
However, in order to produce the most in the shorted amount of time, the factories would have to break the environmental regulations and, of course, care less for the workers. Globalization brought up the global economy and made the corporations have to do things that are immoral and unethical. Most importantly, it is hard to find someone to be responsible for the consequences, because the globe is connected together and “everyone” should be blamed for the consequences. In conclusion, I would like to end the essay with some hopes. The globe has globalized. There are both positive and negative impacts of globalization.
Why not use the positive impacts to try to defeat those of the negatives. Since the global is all connected together, the countries have the advantage to share ideas and solve problems together. The countries could use the connectedness to share knowledge and ideas to solve major environmental and global problems that no country can solve alone. Therefore, I believe that globalization is overall good for the globe. Although there are some negative impacts; however, the positive impacts could overcome those negative impacts and make the world a better place.