Over the past decades, the remarkable growth of the global market has been both a prime effect and the cause of globalization. The current international trade has observed a decrement in the volume of trade and it is expected to be slothful for some time. This is a result of the scrambling European economies and the international doubt over the Euro currency. Costs of globalization include but not limited to inequality as the rich get richer and the poor poorer, existing trade barriers, loss of jobs, social injustices and exploitation of labor (Collins, 2015). On the other hand, the benefits of globalization include global economic growth, influx of information and technology to less developed countries, cultural integration, and labor mobility hence reducing the rate of unemployment.
Globalization is intended to symbolize unity and integration, yet it has proved itself to be more polarizing than the days of cold-war dissection. Globalization raises the uncertainty of the future of the economy for many countries as several commercials become superior in international trade. Notably the regular populace is becoming a victim of the callous domination in the world market. However the predominant corporates such as Microsoft, Nike and Citigroup are prevailing over the poor individuals in nations in their attempts to search for income and profits. These notable global giants ensure the suppression and stagnation of local entities therefore working against the underlying tenets of globalization.
Secondly, globalization leads to the exploitation of labor where the law is either not properly enforced or the enforcers are impartial. Cases of child labor slave trade still continue to make headlines, fueled by globalization. Exposed individuals in developed economies take advantage of unexposed and desperate individuals to exploit them for personal gain. Activities such as human trafficking are just a tip of the iceberg and cloud many other social evils. To some countries, globalization is an economic evil in disguise since it works against the economic need of getting employment especially in less developed countries. The enlargement and expansion of multinationals continues to rob locals of employment as several of these entities come with their own employees.
However, on the flip side, globalization can be thanked for the growth of economies such as China and Japan. These have benefitted immensely from the large market availed by globalization. Some countries are starting to grasp the pros of participating in the global arena and as such are exponentially attaining economic growth. Globalization also facilitates both labor and information mobility from developed to less developed countries. This enables these nations to develop and catch industrially and infrastructural-wise.
Globalization can also be thanked for creation of employment as companies increase their capacities to produce. Countries such as China and India that have lower minimal wages are significant beneficiaries of this as companies opt for cheaper labor. Cultural integration is another benefit of globalization that has led to the amalgamation of cuisines and cultures. Many individuals are reaping big by opening restaurants and hotels that offer foreign recipes. Globalization also facilitates the provision of a variety of products and services at affordable prices due to competition (Ikerd, 2018). Entities that once dominated local markets find themselves competing with more efficient and lager firms forcing them to charge lower prices and provide quality products.
Globalization, just like fire, can be a good servant but a bad master. It is therefore incumbent on the authorities to ensure that set regulations and rules governing globalization are followed to the letter. This can ensure that only the benefits of globalization are maximized while the costs are minimized.
Collins, M. (2015, May 06). The Pros and Cons of Globalization. Forbes. Retrieved April 30, 2018, from https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#564ca9a1ccce
Ikerd, J. (2018, January 10). The Cost And Benefit of Globalization: Who Are The Beneficiaries? Retrieved April 30, 2018, from http://www.casade.org/the-cost-and-benefit-of-globalization-who-are-the-beneficiaries/