Essay: Meticulously Elucidated Pros and Cons of Globalization

"Nowadays one country cannot go alone. The world is now a global village.”

Sheikh Hasina

Overview

The contemporary world is transforming at a rampant pace. Thanks to technology, the dynamics of every country are steadily progressing towards growth and development with every passing day. Besides, there is one more concept that needs to be attributed when mentioning the development and growth of countries and that is globalization. Globalization might have seemed like a surreal idea in the previous century but today, the world is certainly a global village.

To elaborate, the world has been experiencing the emergence of the concept from way back in history. For example, The Silk Route was a trade route specifically created for the smooth trade of various items between Europe, East Africa, Central Asia, North Africa, and the Far east. Even the Europeans traded the glass and manufactured goods for Chinese Silk and Spices that largely contributed to the global economy as well as to the development of both countries individually.

However, in May 1983, Theodore Levitt first coined the term, globalization in his article, “The Globalization of Markets” written for Harvard Business Review. Globalization is the sole reason that many big companies were emphasizing the customization of the products to offer the global market products that are standardized, functional, advanced, and comparatively low priced (Levitt, 1983).

In fact, as per the prominent journalist Thomas Larsson, the term globalization refers to,

“The process of world shrinkage, distances getting shorter, and things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.”

The term globalization has different meanings in terms of its cultural, economic, and political value. In economic terms, the term globalization refers to the exchange of commercial goods and services, capital, people, and ideas between different countries creating an interconnectedness between the top economies of the world.

Globalization in the Digital Age

The credit for the rapid growth of international business and trade definitely needs to be attributed to the enhancement of digitalization in the contemporary world. Different social media and other digital platforms have made it easier for businesses across the globe to connect and interact even by sitting thousands of miles away.

In fact, as per Mckinsey Report, the amount of cross-border data flow bandwidth utilization has enhanced 45 times since 2005. Additionally, it is expected that this growth will increase 9 times more in the coming next 5 years as the flow of information searches, communication, video, transactions, and intracompany traffic continue to overflow.

This increased bandwidth utilization has effectively led to enhancement in cross-border payments within a single click. Businesses are now easily able to import and export different services or products across borders to provide the best suitable service for their target audience. Moreover, there has been a significant increase in international e-commerce as well. This golden opportunity has provided a wide variety of options to many digital consumers to access their favorite products even if the physical stores are not available in their own state or country. For example, now ordering your favorite shoes from America by sitting in your home in Australia is not a tough job, right?

Besides, during and after the pandemic, the educational world experienced a drastic shift in its functioning. The trend of online learning became the new normal in the education industry and globalization was the only reason that students were able to sit in their homes and study in different foreign universities.

This has only been possible because businesses, people, and countries are openly accepting digitalization. Both digitalization and globalization have together converged and created a new normal of global connectivity that inevitably connects nations, businesses, and individuals with each other (Luo, 2021).

But as we all know every coin has another side to it and it is really essential to consider both sides and then come to the conclusion of deciding whether globalization is a boon or just another curse for the world. That being the case, the next section will shed light on the different pros and cons of globalization.

Pros of globalization

1. Financial prosperity

One of the biggest advantages of globalization is that it assists everyone in the circle with financial prosperity. Regardless of whether they are a country, people, or business, if they are embracing globalization, it will assist them in gaining financial prosperity in the long run.

To elaborate, businesses can get labor at a cheaper rate, investors get diversified options to get a better party to agree on their financial terms. People can easily access a different variety of products at a reasonable price because globalization removes the potential of creating monopolies.

For example, Nike is one of the noteworthy companies that made economic transactions possible due to globalization. The company makes the transactions by bringing high stock shares to the company and enjoys significant financial prosperity. When big companies like Nike set up their manufacturing units in developing countries, it benefits developing countries as well because it offers better job opportunities and infrastructure to the countries.

2. Cultural exchange

Every country has its own beautiful culture and the biggest benefit of globalization is that it helps in exchanging these cultures. When people are open to learning about different cultures, it gives them the opportunity to embrace the beauty of each culture and adopt some of the best things. For example, Yoga originally belonged to Indian culture but now, due to globalization, many countries across the globe are practicing Yoga and improving their lives for the better.

3. Technological advancements

Technological advancements have been a major source of our growth and development in the latest years. Besides, this has only been possible because countries are now openly exchanging ideas of taking the technology to new levels of success. Besides, this cross-border technology diffusion has assisted in shaping the innovation landscape of every country which has assisted in increasing productivity as well.

4. Better opportunities for education

Globalization has alleviated the boundaries of time and space when it comes to education. Various e-learning platforms have enabled students to access and adapt to education across borders by sitting comfortably in their homes. Moreover, globalization is the only reason students can easily migrate across borders to get access to education in top schools and colleges in foreign countries.

5. Exchange for medical sciences

Every country has its own brilliant minds that contribute to creating constant advancements in medical sciences to help its citizens to cure different diseases. The field of medical sciences is even enhanced due to globalization because it lets the exchange of expert advice across different countries and come up with the best possible solutions for certain diseases.

Other than the exchange of expert advice, different countries can even import or export different medicines as per the requirement. For example, during the pandemic, at the request of the U.S. President Donald Trump, India shipped 50 million tablets of hydroxychloroquine to the U.S. for helping the country during the pandemic.

Pros of globalization for developing countries

1. Offers better and new trade opportunities

Globalization allows businesses to pitch their businesses to new target markets across the globe. Emerging businesses of developing countries can make different bi and multilateral trade agreements to operate in multiple countries. This can allow businesses to increase their percentage of exports to other countries. Increasing the export of businesses will assist in increasing aggregate demand which will directly benefit the economic growth of a country that will add value to its development.

2. Eases migration

Globalization allows developing countries to have people migrate from underdeveloped countries. The reason for migration can vary for every individual. For example, some move for better growth opportunities in jobs or education, or some want to live a better lifestyle or adopt or experience another culture. This gives developing countries the opportunity to have migrants from other underdeveloped countries.

In fact, today, developing countries host more than a third of the world’s international migrants. When a developing country has immigrants, it can assist the country in its economic growth, and contribute to lowering wages in the labor market. This can altogether help a developing country in becoming a developed one in no time.

3. Alleviates poverty

The concept of globalization is all about the diffusion of goods, services, and capital. When a developing country leverages globalization, the country directly diffuses its growth and creates a network of interdependency all over the globe. Moreover, when a developing country breaks into the global market, it creates multiple job opportunities for people. This allows a country to grow faster and alleviate the poverty levels at a country level.

Pros of globalization for developed countries

1. Helps in international recruitment

The reason that cross-border recruitment has been possible is because of globalization only. Globalization has given a larger pool to the developed countries to choose brilliant minds and highly skilled workers at even lower wages across the globe to skyrocket their growth to another level. Moreover, as remote working is becoming the new normal across the globe, hiring remote workers gives multiple budgetary benefits.

2. Eases market expansion

Another factor of globalization that benefits developed countries is that it allows them to expand their businesses globally. Businesses that operate at a global level, enhance their visibility which assists in attracting more and more consumers. Moreover, consumers simply mean more revenue for businesses. Besides, when businesses’ incomes grow in a country, the country’s economic, social, and political growth also enhances at a rampant pace.

To continue, it was only the result of globalization that companies like Coca-Cola currently operate in more than 200 countries around the world and serve millions of customers on a daily basis.

3. Brings innovation

Along with exchanging capital or financial goods and services, globalization also allows the exchange of ideas across borders. Every social group has a similar set of ideologies to a certain extent but when cross-border ideas exchange takes place, it fosters innovation in their workplaces which contributes to the development of the country as a whole as well. Besides, when a developed country welcomes a diverse workforce, it brings diversity in its ideas and working practices as well.

Globalization pros and cons

Cons of globalization

1. Enhances corruption

Corruption has been at the roots of the world for a long time now. But as globalization has increased worldwide, it has also fueled corruption to some extent. To elaborate, in order to compete in the international market, businesses are cutting every possible aspect to bring their products to competitive pricing.

For this, businesses often end up compromising the quality of the product. To recoup the cost of their deteriorated quality, businesses often pay bribes to the contractors and get their products and services approved. In fact, in the year 2011, Johnson and Johnson was fined the amount of USD 70 Million for offering bribes to Greek doctors to prescribe its drug.

2. Loss of local cultures

Globalization has made it easier for people to know about the different cultural dimensions and practices all over the world. But, with the continuous adaptation and borrowing of western culture, people are also losing touch with their local culture. People all can experience the impact of globalization on the food they eat, the media they watch, and the products they buy. If people continue to adapt to the foreign culture at the same pace, it will weaken the trust of people in their own ethnic groups.

3. The exploitation of labor

Globalization has increased the migration of labor across the world. Although this has increased employment opportunities, businesses are getting too big talent pools to choose their workers from. Now because businesses have too many options nowadays, they do not feel the need to pay for their labor by the laws. This has led to an increase in the exploitation of labor.

To continue, people across the world are getting less paid even though they can not even surpass their living conditions. To validate, as per the statistical data, there is a total of 27.6 million people in forced labor, out of which 17.3 million belong to the private sector ("Forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking)", 2022).

Role of globalization during the COVID-19 outbreak

1. Medical aid across countries

During the times of Covid19, many countries came into support of each other and traded medicines all over the world. This medical aid would only have been possible because of globalization and countries’ openness to share the production of the pharmaceutical in their countries with others in need. One biggest example of this was when Oxford University in association with AstraZeneca created their Covid19 medicine also known as the Covishield in many countries and was distributed in more than 185 countries.

2. Cross-border e-commerce expansion

During the covid19, the trend of online shopping increased at a rampant pace that skyrocketed the growth of the e-commerce industry. In fact, the e-commerce share of retail trade at the global level increased from 14% in 2019 to about 17% in 2020 (How COVID-19 triggered the digital and e-commerce turning point, 2022).

3. Sharing of vaccine expertise

When the whole world was suffering from a pandemic, the only reason we were successfully able to find the vaccine for the deadly disease was that brilliant minds across the world came up together and shared their vaccine expertise. Now, if globalization would not have been in existence, it would not have been possible to drive pharmaceutical innovation.

Globalization essay: Sample Essay

Globalization essay is one of the common assessments for students. However, students often get tangled in how to write an essay, and to help you with the same, below is a sample of a globalization essay. Moreover, this sample essay also includes proper citations that will also help you in keeping your essays free from all types of plagiarism. Moreover, if you want to go through other topics of the essays, you can go through our section of sample essays.

Sample essay: Rising xenophobia in times of globalization: causes and effects

Introduction

As predicted by prominent philosopher Marshall McLuhan, the world has certainly made advancements with the help of the internet and became a global village in no time. The contemporary world has openly accepted the trend of globalization and is taking advantage of its tremendous benefits. However, as the trend of globalization and migration is rising, hate crimes and xenophobia are also getting fueled. To define, xenophobia is the attitude, prejudices, and behavior that rejects and often excludes people based on the perception that other people are foreigners to their society and nationality (Chiweshe, 2019). In times of swift globalization, xenophobia is also increasing at a rampant pace. This is the reason, it is essential to know the impact and causes of xenophobia and how it has impacted globalization in one way or another. That being the case, the essay will first highlight the causes of xenophobia. Secondly, the essay will shed light on the effects of Xenophobia.

Body

Globalization and xenophobia are both increasing parallel to each other. It all started when globalization allowed people to migrate from one country to another for better opportunities and pay scales. This has impacted the mind of people in the country where immigrants are landing that the outsiders will take over their jobs and will blur their deep-rooted country cultures. Besides, one of the biggest negative effects of globalization is that it has lowered the amount of wages companies used to pay because now companies have the option of hiring migrant workers. Although this favored the companies, at the same time it lowered the wage rates which compelled many people in the country to adjust to the lower wage rates. This has created economic insecurity in the minds of the people that the people coming from outside the country are fetching their growth opportunities from them.

Apart from economic insecurity, there are many possible causes of the increased xenophobia across the globe due to globalization. For instance, social media and mainstream media are major reasons that the insecurity in the mind of people towards certain communities of migrants is increasing which is fueling xenophobia to another extent. The narration of negative stereotypes and dehumanizing narratives using value-laden words by mainstream media and social media can empower the growth of xenophobia. The reason is that globalization has allowed people to learn about other cultures or other communities through media which has shaped the opinions of the people negatively (Desmarès, 2017).

The impact of xenophobia has triggered violent behaviors among people of the country against immigrants and this has not only remained confined to the brainwashed adults but has also triggered small school kids. Several incidents have now started occurring in the school where international school/college kids are becoming victims of xenophobia. One such incident occurred in Cape Town, South Africa. A grade-10 student, Nathalie who came to Cape Town with her family 10 years ago was severely beaten by fellow students after being elected as a class monitor on August 27, 2019. She was under critical supervision of the hospital for 9 days. Even the educational authorities denied taking any actions stating that further actions would inflame actions among students' parents and the school authorities. Nathalie never returned to school out of the fear of getting beaten up again ("“They Have Robbed Me of My Life”", 2022).

Besides, the victims of xenophobia also find it difficult to survive in society. This increasing xenophobic attitude may deprive the community facing backlash from getting good job opportunities or other facilities, and rights than others. This could result in affecting their mental health negatively. In fact, a study also revealed that people that are victims of xenophobia experience higher levels of depression, poorer health, and enhanced risk of isolation and were more likely to have suicidal ideation because of experiencing feeling isolated and disconnected (Guy-Evans, 2022).

Conclusion

To conclude, xenophobia is rapidly increasing, and although globalization has a major part to play in the same, it still needs to be addressed. Globalization has also given multiple benefits to different developing and developed countries. The rise of xenophobia that is happening due to globalization should be ended and everyone should be actually viewed and treated as equal. Besides, as said, change starts at home. So the fear of strangers needs to be overcome and diversity and inclusion should be only embraced.

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References

R.F. Al-Rodhan, D. (2022). Definitions of Globalization: A Comprehensive Overview and a Proposed Definition [Ebook]. Retrieved from https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.472.4772&rep=rep1&type=pdf

Levitt, T. (1983). The Globalization of Markets. Retrieved 5 September 2022, from https://hbr.org/1983/05/the-globalization-of-markets

Luo, Y., 2021. New OLI advantages in digital globalization. International Business Review, 30(2), p.101797.

UNCTAD. 2022. How COVID-19 triggered the digital and e-commerce turning point. [online] Available at: https://unctad.org/news/how-covid-19-triggered-digital-and-e-commerce-turning-point [Accessed 8 September 2022].

Forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking). (2022). Retrieved 28 September 2022, from https://www.ilo.org/global/topics/forced-labour/lang--en/index.htm

Czaika, M., & de Haas, H. (2014). The Globalization of Migration: Has the World Become More Migratory?. International Migration Review, 48(2), 283-323. doi: 10.1111/imre.12095

Forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking). (2022). Retrieved 28 September 2022, from https://www.ilo.org/global/topics/forced-labour/lang--en/index.htm

Desmarès, C. (2017). Addressing Xenophobia Representations of Migration and the Role of the Media [Ebook]. Retrieved from https://i.unu.edu/media/gcm.unu.edu/attachment/4349/Adressing-Xenophobia-final.pdf

“They Have Robbed Me of My Life”. (2022). Retrieved 15 September 2022, from https://www.hrw.org/report/2020/09/17/they-have-robbed-me-my-life/xenophobic-violence-against-non-nationals-south

Guy-Evans, O. (2022). Xenophobia: Definition, Symptoms, Traits, Causes, Treatment. Retrieved 15 September 2022, from https://www.simplypsychology.org/xenophobia-fear-of-strangers.html