Advantages and Disadvantages of Globalization
Globalization is a generally used term implying that the world has integrated economically, politically, culturally as well as socially by means of the advancement in technology, communication, and transportation. Lane (12) asserts that globalization is the expanding integration between the markets for merchandise, services as well as capital along with the breakdown of the borders. The methodology of globalization not only incorporates opening up of trade worldwide, internationalization of financial markets, developing significance of multi-national Corporations and for the most part expanded versatility of persons, but as well critical problems like infections, diseases and pollution. It is irrefutable that globalization has led to both positive and negative consequences that must be dealt with accordingly.
Globalization has led to an increment in employment opportunities. The procedure of globalization can lead to more employments opportunities to the host nation when MNCs move their generation operation into creating nations. According to Metz (42), job creation will happen within export-processing zones where expansive workforce are needed with an objective to keep the production process running. A good instance of job creation through globalization would be Coca-Cola company that chose to put resources into Malaysia with another packaging plant, comprising of an investment of $301 million. They expressed that this venture will offer approximately 600 to 800 employments at the plant with 8,000 occupations interface with the local suppliers.
Globalization is as well imperative in ensuring that there is transfer of technology. Transfers of technology rely on upon the available resources by MNCs with the capacity to accomplish the level of technology improvement so as to make them competitive in the international business platform. Normally developing nations are not able to do innovative research programs on themselves as the innovations that obliged executing the opposition system are well on the way to originate from different nations through technology transfer. Lane (18) expressed that the degree of creating nations, support in worldwide economy rely on upon their capacity to regard where the significance of innovative transfer cannot be overemphasized. There are ten modes of technology transfer which has been recognized by Peter Buckley. However, the most traditional structure will be entire claimed backups. This structure is otherwise called FDI where MNCs can bring down their exchange cost. Henceforth, technology transfer to auxiliary in other nation permit developing nations to take in the operation of new technology. At some point auxiliary did not permit neighborhood firms to learn however they by one means or another find their approach to get the technology, for example, enlisting government from that specific backup.
One of the disadvantages of globalization is that the governments of developing nations begin to contend with one another by deregulating their policies to draw in foreign direct speculation (FDI) as well as multi-national corporations (MNCs). Thus, by bringing down the wages and rates of tax encourage the investors (Metz 34) to stay away from the danger of losing their capital invested within these developing nations. When the governments of the developing nations improve work safety of the workers with a specific end goal to secure local labor' rights, this may could result in MNCs move their operation to other developing nations which are most likely to acknowledge low wages by any benchmarks, absence of union agent, child labor and abuses by international organizations.
Another disadvantage of globalization is that in this era of globalization, social aspect is closely related to the consequences of the waves of globalization such as the living standard, families, careers, and the communities. Therefore, globalization is thought as a method of organizing someone’s life and which comprise of assimilation, communication between people, organizations, and other parts of the world. The between relationship between the technology and monetary is extremely basic and it succeeded in comprising the ascent of the hypothetical methodologies where the centrality of changes in technology have been acknowledged and the element power of the term development in the components of prudent changes. Interest in technology seems to have a hopeful connection to more extensive logic in creating monetary hobbies which incorporate social decisions and flexibility capacity in life span and instruction.
In conclusion, it is imperative to restate that globalization is unavoidable and therefore individuals, companies and governments ought to be urged to utilize a more balanced advance by taking the necessary steps to handle matters that relate to the financial or economical growths verses the social, or political concerns of the world.