Roland Kenny

Carlie Naughton

August 7, 2010

Globalization: Pros and Cons

In order talk about the pros and cons of globalization, we must first get a basic concept of what globalization really is. We must understand how globalization of world economies has got to this point, where it is going, and most importantly-we need to learn from the mistakes that have been made.

Globalization, as a concept, refers both to the "shrinking" of the world and the increased consciousness of the world as a whole. It is a term used to describe the changes in societies and the world economy that are the result of dramatically increased cross-border trade, investment, and cultural exchange (1). More specifically, globalization refers to industry and the idea of free trade in world markets. The new technological age has brought the world closer together. The key to understanding globalization is realizing that globalization is more than industry and money; it is the exchange of goods, services, and ideas through modern technology. It has let nations and cultures better understand each other, and more importantly it helps us understand the needs of others. We must understand that globalization actually refers to every aspect of life like cultural, social, psychological and of course, political (2).

Globalization of world economies is not a new idea. It was practiced by the Romans during the first centuries. Through brute force, Rome brought together the people around Europe and the Mediterranean into one realm. She built roads and trade centers, which brought the trade of ideas, goods, and services. The East Indy Trade Company, backed by the British military, opened up new trade routes over the vast oceans. They created a global economy, which has stuck until this day. Globalization has entered a new age, and is expanding faster than ever. Now that we have a basic idea of what globalization is, let us look at some pros and cons of the process and results.

Pros of Globalization

  1. A worldwide market had been created for companies and people have greater access to goods from all over the globe. They are able to try new foods, listen to new music, and experience others cultures through the trade of these goods. This in turn has increased the amount of production of goods from nations around the world.
  2. Since the world market has been strengthened, there has been a stronger influx of money into developing countries. When this takes place, the financial playing field starts to become more level.
  3. Instead of multiple world powers all competing against each other and looking out for themselves, they are starting to conglomerate into one global power. They still have their separate identities, but because they are more linked with others, their decision making benefits people from all over the globe.
  4. There is more exchanging of ideas and information of countries because of technology. When these two items are shared, our cultures begin to mix. Cultures pick and chose parts of other cultures and infuse them into their own.
  5. Since the global economies have become so intertwined, corporations and governments are trying to sort out ecological problems for each other (3).

Cons of Globalization

  1. More industrialized nations in Europe and North America are starting to lose jobs and businesses, thanks to free trade and multinational corporations. The businesses are taking their factories elsewhere for cheaper labor.
  2. There is the threat of corporations ruling the world because of all the money that is invested in them through globalization. In the future these corporations may dictate laws in some countries because of their power.
  3. Relocation of these businesses to developing countries creates a mass influx of people into already overcrowded urban areas. This could lead to political unrest, poverty, and wide spread disease.
  4. Since world economies are intertwined, when a large country’s economy fails, it could have a domino effect. This would create a failure of world economies everywhere
  5. Globalization makes countries lazy and less innovative. When there is an ever expanding market, people get complacent in their ways. People lose their creativity when there is less competition to stay above the next guy (4).

Now that we have looked at the pros and cons, we must try and decide which side we are on. Do we gladly accept the exchange of goods and ideas amongst the masses and at the same time put more power into corporate hands.

The problem with the new age of globalization is that it grew so big so fast that we failed to understand the full ramifications of what could happen, and has happened. There was no planning, because of technology it took off to the point no return. How can we turn back the process now, or the bigger question, do we even want to?

We must learn to be responsible through the globalization process. Globalization is a living and evolving thing, therefore we should try and domesticate it. We must study it, try and control it as much as possible. Globalizationcould be a peaceful and bonding experience, we just need to make sure that our world leaders are responsible and try to curb globalization into a process that benefits all mankind.

Globalization Sources

  1. Held, David, et. al. 1999. Global Transformations: Politics, Economics, and Culture. Stanford University, Retrieved on August 6, 2010 from Newworldenyclopedia.com
  2. The Globalization Process, April 2010, Retrieved on August 6th, 2010 from Buzzle.com
  3. Pros And Cons Of Globalization, Retrieved August 7th, 2010 from iloveindia.com
  4. The World is Flat, Freidman, Thomas, 2005 Farrar, Straus and Giroux