Effects of Globalization
Globalization describes the international interdependence relationship between countries in terms of intercontinental trade, economic relations, technological advancement, and investments.
The positive influence of globalization
- Economic growth
Globalization improves economic growth by expanding the trade of locally produced goods and services to an international level. No country is self-reliant; therefore, every state has that one service that they have to outsource. It enables countries to maximize their local productions and increase their market beyond the border.
The internal trade between countries makes it possible for other countries to purchase raw materials at an affordable price and make profits that boost the economy. The worldwide customer base encourages production companies to expand their branches even to other nations. As a result, a significant positive impact on the economy is realized.
- Healthy competition between countries
Globalization keeps every country on toes such that inventions are coming up every day from all parts of the world. Healthy business competition is a precursor to business growth; otherwise, most companies would not have achieved global recognition. Competition between countries is the main reason for the improvement of the quality of goods and services every time.
- Improves individual education
The impact of globalization on education makes everyone capable of getting a scholarship to study abroad and even extends his or her education to PhD levels.
In the past, getting an education in developed countries results in the introduction of new skills of development in 3rd world countries. However, today, people do not have to travel abroad to get equipped with quality skills since the services are available. States have developed their education system since the next generation of its citizen relies on such development for a better life.
The negative influence of globalization
- Unemployment
Globalization plays a significant role in increasing the unemployment rate in many countries. Due to the introduction of technology because of global relations, many companies incorporated technical systems to handle their operations. As a result, the technology subjects many workers to joblessness.
- Terrorism
Globalization creates a perfect opportunity for the terrorist to perform their hostile acts. Due to the free inter-country movement, most people travel from one nation to another for different reasons, from business, health issues, and scholarship. Terrorist gets into foreign countries every day with visa indicating worker or business to carry out their ill motives.
- Instability in prices of goods and services
Globalization makes international companies to import raw materials at lower prices and market their goods at lower prices. As a result, local companies face challenges in selling their locally produced products since their competitors lower the costs of goods.