What are the Effects of Globalization? (Essay Sample)

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Globalization
Globalization is the global integration of markets for goods, services, and resources. In these processes, domestic and geographical boundaries become increasingly irrelevant for commercial activities. Globalization came up when local companies and businesses became global operations, with companies trading with other countries and selling and distributing their products in new markets. Globalization is good for international business. It is also a way to enrich poor people from poor countries, but globalization has its terrible consequences like dumping and immigration issues. Globalization is increasing significantly and is creating opportunities for both developing and developed countries.
Developing countries are now able to attract foreign direct investment and foreign investors (United Nations Staff 12). An influx of foreign companies leads to an increase in global trade through the opening up of boundaries. Hence, specialization rises and those countries that are more productive than others produce goods and services cheaply (United Nations Staff 12). Trade makes businesses gain new technologies this lowers the cost of production. There are exchanges of harmful cultural practices from one country to another through trade, bad behaviours and morals become enlightened. Improvement in technology increases efficiency; however, automation in the manufacturing agricultural industry reduces the need for manual workers; thus, resulting in the rise of unemployment (Steger 23).
Globalization has caused an increase in the standards of living in third world countries (Steger 23). It gives the developing nations an opportunity to get foreign assistance from other countries and multinational lending institutions. Hence, developing countries acquire advanced technologies and generate more employment, increasing their GDP, which raises the standards of living (Steger 24). On the downside, access to foreign credit leaves developing countries heavily indebted and this makes its citizens with an obligation to repay the debts for generations to come (Collier and Dollar 34).Globalization opens ups boundaries between countries and regions, leading to a freer trade between countries and regions (United Nations Staff 13). Thus, barriers to trade collapse and businesses have access to new markets. Access to new and wider markets allows domestic and home-grown industries to concentrate on producing product and services where they have a comparative edge than other countries (Collier and Dollar 34).
Access to new markets has its disadvantages; businesses in developed countries dump their industrial waste in developing nations. Dumping poses a threat to humans, animals, and the environment by exposing them to technology debris and hazards. Globalization increases income inequality in developing countries (Kremer and Masking 20). While, an influx of foreign companies and foreign direct investment reduces the overall unemployment status and poverty, it also increases the wage gap between the low-skilled workers and high-skilled workers in tho...