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The world is a better place as a result of globalization, discuss
Globalization simply means assimilation in the world- its people, cultures, politics and whole economies. It connects the planet and outcome is the expansion of global cultural, financial, and political activities. It was hastened in 19th century when Industrial Revolution came and companies started to use raw materials from distant territories and have market in other countries. Britain’s colony in India, for instance, supplied cotton to British merchants and traders. Madras, a light cotton cloth, was made in the city of Madras (now called Chennai), a major port in India. Globalization has six major characteristics: economic development, democracy, cultural enrichment, political and cultural norms, information, and internationalization of the rule of law. Though the term globalization is controversial, many favor it in terms of its benefits like improved communication, quick response to a natural calamity, highly developed medicines etc. But few are against it too. Globalization is a complex subject so it is required to weigh up the pros and cons before sketching the conclusion.
Its Pros are-
1. Free trade - reduced trade barriers between nations, representing promotion of worldwide economic development, job creation, competitive companies, and lowers prices for customers.
2. Growth of Developing countries- provides foreign capital and technology therefore the possibility to expand economically. Developing countries as a whole have increased their share of world trade–from 19 percent in 1971 to 29 percent in 1999.
3. Improved Democracy- globalization and democracy go mutually. There should be unadulterated business with no dictator or colonialism. International politics helps to take decisions for benefit of all people in the world.
4. Cultures- openness and tolerance towards everyone has increased and people from all over world are accepted everywhere.
5. Speed-fast travel, communications and exchange of information through the Internet are one of the best benefits of globalization.
6. Sharing technology- is helping nations to progress. It may be used to combat problems together like Chile that is also a storehouse of knowledge for managing earthquakes and tsunamis. While I was there, I visited La Serena, which in 2015 experienced the sixth strongest earthquake ever recorded. But the ensuing tsunami killed only 11 people, though it surely would have killed far more in many other places. Chilean officials’ advanced preparation and rapid response seems to have made the difference. With so much institutional experience, Chile can be a valuable resource for other countries threatened by seismic events.
Its Cons are-
1. A barrier to free trade- One of The Washington Post story says “the problem is that the big G20 countries added more than 1,200 restrictive export and import measures since 2008.
2. Lost Jobs- One of the major crises for developed nations is that they are losing jobs to developing countries due to low cost of work. “According to conservative estimates by Robert Scott of the Economic Policy Institute, granting China most favored nation status drained away 3.2 million jobs, including 2.4 million manufacturing jobs. He pegs the net losses due to our trade deficit with Japan ($78.3 billion in 2013) at 896,000 jobs, as well as an additional 682,900 jobs from the Mexico –U.S. trade-deficit run-up from 1994 through 2010.”
3. Influence on politics- there is a belief that multinationals may influence the political parties due to their power and money.
Globalization has negative effects of terrorism and contagion diseases like swine flu, etc. but it has many benefits. As put by the Jim O’Neill “Despite the many challenges it has created, globalization has made the world a better place than it otherwise would have been. And we still need it to eradicate poverty and generate higher living standards for all.”
Sorman, Guy. “Chapter 3 Globalization Is Making the World a Better Place.” Index of Economic Freedom, 2008. https://thf_media.s3.amazonaws.com/index/pdf/2008/Index2008_Chapter3.pdf (accessed September 25, 2017).
Rutledge,Kim. Et.al. “Globalization.” National Geographic, March 28, 2011. https://www.nationalgeographic.org/encyclopedia/globalization/ (accessed September 25, 2017).
Collins, Mike. “The Pros and Cons of Globalization.” Forbes, May 6, 2015. https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#2e3ec05ccce0 (accessed September 25, 2017).
IMF Staff. “Globalization: Threat or Opportunity?” International Monetary Fund, April 12, 2000, https://www.imf.org/external/np/exr/ib/2000/041200to.htm#footer (accessed September 25, 2017)
O’Neill, Jim. “Globalization has made the world a better place,” The Guardian, January 18, 2017, https://www.theguardian.com/business/2017/jan/18/globalisation-world-trade-asia-global-poverty (accessed September 25, 2017)