Impact of Globalization (Research Paper Sample)

Impacts of Globalization
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Impacts of Globalization
Globalization is an ineradicable and powerful phenomenon that has contributed to the growth of the world at large. It reduced poverty, enhanced international trade, improved the communication between various regions, and increased job opportunities. While globalization is not without downsides, its positive impact supersedes the disadvantages associated with the phenomenon. Therefore, it is important to identify the downsides and mitigate or eliminate its effects on the regions that are negatively impacted instead of trying to efface it because globalization has more benefits than downsides.
Positive Impacts
One of the most positive effects of globalization is international trade. Businesses and companies have a wider consumer base in the global market, thereby increasing their revenue. On the other hand, consumers have access to products that are not available in their country. Additionally, goods are sold at a cheaper price to consumers because companies are able to manufacture products in locations where their production cost is substantially inexpensive due to globalization.
Through a globe-spanning network of communication and trade, multinational firms emerged and took over the world. Cross-border transactions and overseas expansion have also made multinational companies economically dominant. Microsoft, Walmart, Apple, and Nike are some examples of globally successful multinational ventures. Multinational companies also represent one of the primary elements of globalization – interconnectedness (Kukreja, 2021). They also have an impact on the economy of a country. For example, multinational companies are generally high taxpayers. The country can benefit from increased tax revenue. Furthermore, MNCs also offer job opportunities that escalate the income and expenditure of a country.
Innovations, technology, and knowledge from one country are easily accessible to another country with the help of globalization. Television and media are two powerful components that influence international commonality by assisting people from various walks of life to be constantly connected. With the faster transmission of foreign data and innovations, life is made easier in every aspect such as healthcare, science, agriculture, and transportation. Additionally, technological developments also increase the competition between businesses. Adopting new technologies becomes essential for companies to stand out among the crowd and increase their revenue (Kukreja, 2021).
Lastly, globalization promotes world unity and peace which will keep terrorism at bay. Dependency is one of the common attributes of globalization. Countries rely on one another for their growth. Therefore, a rivalry is less likely to emerge. Even in the case of a disagreement, the countries might end up finding a common ground to resolve their differences in a non-violent way.
Negative Impacts
Destruction of natural resources and the environment is one of the powerful downsides of globalization. Global demand for products and goods increases the rate of production, resulting in the quick depletion of natural resources. The problem behind this mechanism is the inability to give enough time for the resources to regenerate. Over the course of time, some of the resources might go extinct which poses a greater threat to mankind. Additionally, factories and industrial plants make use of toxic chemicals during their manufacturing process which raises environmental concerns. Also, the emission of industrial pollutants could affect the atmosphere and increase ozone depletion (Kukreja, 2021).
Job insecurity is another threat of globalization due to outsourcing and international competition. While it also increases job opportunities, it really depends on which part of the world one lives in. For example, if an underdeveloped country is able to get a job done at a lower wage, the developed country from which the job is outsourced will lose employment chances. A surge in job demand has reduced the wages and defaced the quality of living in many regions. Outsourcing jobs was a byproduct of market fluctuation. It became crucial for the companies to adapt quickly to those fluctuations in order to withstand them firmly. Therefore, MNCs and businesses avoid recruiting internally.
Nature of Globalization
Globalization is an economic, political, and sociocultural phenomenon because of its nature to be interdependent and multifaceted. As a result, it has influenced various scopes of human life, not just one in particular. A real-world example of economic globalization is how MNCs manage multiple branches of their company in different countries. KPMG, an international MNC has branches all across the globe, is headquartered in Switzerland. The company primarily provides audit, tax, and advisory services. They outsource their work to individuals who reside in underdeveloped countries to get the job done in a cost-effective manner as well as provide employment to those in need of it (Thakur, 2021).
Cultural globalization can be defined as the unification of numerous cultures. It can be considered neither positive nor negative because it raises subjective opinions. Cultural globalization helps in the exchange of local knowledge while contributing to the transmogrification of a culture, resulting in a lack of cultural identity. A real-world example of cultural globalization is the expansion of fast-food franchises across the globe such as McDonald’s and Starbucks (Viswanathan, 2017). As a result, more people are neglecting local diets and traditional food items. This cannot be considered a downside because some people enjoy food from other parts of the world.
Internet and social media are the two best elements of social globalization. It refers to the increased communication and sharing of ideas between countries. An example of this type of globalization includes the international popularity of Harry Potter and The Twilight Saga movie and book franchise (Boloix, 2020). The franchises were so successful and famous that the characters from the books and movies are widely recognizable in every country.
Political globalization can be defined as the existence of harmony and cooperation between countries. It reduces state-based autonomy and administration in general. The development of the United Nations (UN)