Table of Contents
This is the beginning
Positive and Negative Effects
In conclusion
An opening
Globalization encompasses a wide range of aspects. This term refers to the many changes happening in today’s world on all levels: social, political, economic. Sassen (2015) states that globalization is responsible for the assumption of a single country. Globalization has changed the face of the business world by making it look like one village. Transactions and purchases are made with ease. Globalization can have negative impacts on different sectors. This paper will explore the positive as well the negative impacts that globalization has had on the global economies.
Positive and Negative Impacts
Researchers have found globalization to be a good thing for consumers, as it has increased their living standards. Investors are now able to offer their goods and services to customers in any part of the world. This has led businesses to expand internationally, as larger sales will guarantee higher profits. Profits are then re-invested in the business. Investors have been able to lower their production costs by outsourcing goods and services. In turn, this has led to an increase in sales for these companies and a greater variety of goods available at a lower price.
According to Crane-Matten (2016), globalization boosted competition amongst producers. The producers compete for the economic pie. Investors are forced to adhere to global standards for goods when they venture across borders. Companies have been forced to improve quality by the competition to gain market share, as well as the global standards. A wide variety of goods of high quality is available to consumers, allowing them to make a choice. Due to competition, prices have been lowered and the quality of goods has improved.
Unfavorable
Clark, 2014) has argued that globalization is a negative force that has a variety of adverse effects on countries from the Third World. The rise of globalization, they claim, has increased income inequality. Income inequality is causing a rift among industrialized and lesser industrialized countries.
Income inequality is on the rise, as the industrialized nations are primarily the investors. They are therefore the biggest beneficiaries. Third-world countries only have the chance to purchase cheap goods and profits will be used for the development of the investors’ mother countries. Transnational companies dominate the global economy, leading to a poorer development of their respective areas.
ConclusionFrom an initial glance, it appears that globalization has both benefited the world’s economy and denigrated developing nations. Globalization, despite its flaws, has been able to change and liberate the world’s economy in a more significant way. The negative consequences of globalization are managed by implementing policies.
