Questions

1. What do you believe are the best and worst aspects of

globalization?
 Who has it helped and whom has it hurt?
 What is to be done to promote the positives of
globalization and mitigate the negatives?
2. Briefly discuss the following contemporary global
issues.
A.Global warming
B. Terrorism
C. Religious fundamentalism

1
 The best aspects of globalization
 The best part of globalization is that it promotes and increases interaction between
different populations, no matter how they are far away from each other.

Pros
The main advantage of globalization is a comparative advantage. Comparative advantage is the

ability of one country to produce goods and services at a lower opportunity cost as compared to

other countries. This concept suggests that two countries proficient in producing two commodities at

different costs can take advantage of each other by exporting the goods where the comparative

advantage exists.

For example, a developing country has a comparative advantage in producing cement, and the

United States is manufacturing bricks. The US is able to produce cement more efficiently than the

developing country. The US would be able to focus on bricks because of its comparative advantage.

This is the reason globalization is a powerful driver of global consumption among countries of

different resources. Evidence taken from different sources suggests that a positive growth impact

takes place in countries that are rich in globalization. It gives opportunities to mitigate the instability

of output and consumption, although all the products and services are exported and imported easily.

Followings are the positive Aspects of Globalization:-

 i. As more money is poured into developing countries, there is a greater chance for
the people in those countries to economically succeed and increase their standard
of living.
 ii. Global competition encourages creativity and innovation and keeps prices for
commodities/services in check.
 iii. Developing countries are able to reap the benefits of current technology
without undergoing many of the growing pains associated with development of
these technologies.

2
 iv. Governments are able to better work together towards common goals now that
there is an advantage in cooperation, an improved ability to interact and
coordinate, and a global awareness of issues.
 v. There is a greater access to foreign culture in the form of movies, music, food,
clothing, and more. In short, the world has more choices.
 Now, have a look on the positive aspects of the impact of globalization on
economy, society and culture and education one by one-
 Economy:
 In most of the developing countries, the economic policies had not been yielding
good results, especially for the poorer sections. The gap between the rich and the
poor had constantly been on the rise. Due to lack of competition, the big business
houses had been selling average products at high prices.
 In other words, the consumers were not getting the best products available in other
countries at much cheaper prices. The monopoly of the internal big industrialists
and business houses was not meant for any special benefits to the common people.
This can be illustrated by the example of the television industry in India.
 Politics, Society and Culture :
 The debate over the desirability or otherwise of fixing parameters of developed
socio-cultural systems, is an everlasting one. One set of scholars has been coming
up “Ideal Types’ or the systems having the most desirable socio-political and
cultural traits. These scholars suggest that all the societies should make conscious
efforts to acquire the traits of the ‘ideal’ system. They also suggest that the pre-
modern traits should be shed-off.
 On the other hand, there are scholars who argue that every society and every
culture has its virtues, and that, “ideal types” should not be imposed upon. They
advocate for the right of every group to preserve its own socio-cultural and
political characteristics.
 In short, even though scholars may disagree on “Ideal Types”, they all agree on
the desirability of equality and justice becoming the basis of any socio- cultural
and political system.
 Education :

3
  Eduction provides knowledge and prepares people to adjust to, or if
necessary, mould the environment in which he/she lives. Globalisation will
help in making the obsolete education systems up-to-date. Knowledge of the
latest events, technologies, facts, developments, discoveries and human
endeavours is essential for the development of any society. With the-
demolition of restrictions/barriers, universities and institutions of the
developed countries will be offering their knowledge in the less developed
ones through pranchise or partnerships with local universities/institutions.

The merits of globalization are discussed below.

1. Rapid Economic Development:

Globalization will make all persons sincere and active in their work. Being part of
the game of competition, they will try to produce more and sell more. The basic
principle of globalization is that each one will try to prove that he is better than
others.

As a result, economy will develop fast and the economic development of the
country will be expedited.

2. More of Investment:
Free economy will attract more of investment. Rich and developed countries will
invest their capital and establish industries in poor and backward countries.

3. More of Employment:
More of jobs will be created in developing countries. Individuals with skill and
good education will be able to find employment in different industries and
factories; some of them may open their own business.

4. Increase in the Efficiency of Domestic companies:

4
The domestic companies, as a result of competition with MNCs, will be able to
increase their efficiency and successfully compete at the international level.

5. The Government becomes more efficient:

The bureaucracy is generally slow, cunning and corrupt. Red-tapism is the other
name of bureaucracy because of these bad qualities. The decision-making is
unduly delayed. But, due to liberalisation and globalization, the government is
almost forced to change its style of work, and become more active and
competitive.

6. New Inventions and Discoveries:

As a result of-globalization, there takes place marked change in the nature and
character of man. He dreams and he tries to make it a reality. He thinks of new
ideas and searches for new paths. All this helps him make new inventions and
discoveries. In turn, this contributes to qualitative increase in his knowledge.

7. The Consumer Benefits:

Globalization weakens the monopoly business; as a result, the consumer has
several choices in the market. The producers are required to produce better things
to attract consumers.

8. Cultural linkage:
As globalization breaks national barriers, it becomes easier for the culture of one
country to reach other countries. As a result of exchange of values and ideas
among nations, a new culture is likely no grown. The cultural division among them
has begun to weaken.

9. Strengthening of Democracy:
As a result of globalization, democracy will be strong and solid. Democracy
mainly means political freedom, and political freedom has little meaning if there is

5
no economic freedom. As globalization gives economic freedom to people, it helps
them take active part in the democratic process.

10. One World:

Globalization is the right step towards the establishment of one world. It breaks
national barriers and binds all nations by the bond of friendship, cooperation and
integration. In course of time, it is hoped, there will be one people, one
government, and one world. Globalization will help materialise the ideal- ‘the
whole mankind is one.’

6
  Who has it helped and whom has it hurt?
Helped:) However, our Globalization Report 2018 shows for the third time in a row, as in 2014
and 2016: when measured in terms of real gross domestic product (GDP) per capita,
industrialized countries continue to be the biggest winners of increasing globalization, while
developing and emerging economies lag behind.

 Hurt_: Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa's
countries, have been affected by globalization, and whether negatively or positively, the
economies of these countries have improved under the influence of globalization.

Globalization: Who benefits/Who loses?

Globalization is a great opportunity for countries to improve in many areas. It might potentially offer developing
countries new opportunities for accelerating economic growth and internal development. But is the globalization profit
divided equally, and does this phenomenon actually have a positive impact on everyone?

The west, in genereal, has greatly benefited from the globalization. The production was moved to cheaper countries,
companies started to make more profit, people started to make more money and we are all happy. However, some
people in the west lost their job due to that reason. Many miners, for example, were made redundant, because it is
cheaper to import coal from China, than to exploit it in "expensive" UK or Germany, where labour cost are high. A lot
of companies and manufactures had to quit, because they simply couldn't compeete with big corporations, that
significantly lowered the proces.

The developing countries also suffered from the globalization. The foreign industry highly affected their eco-system.
People, who frecquently work two times longer than in Europe,  have very low sallaries. In addition, the workers
cannot even demand better conditions, because they are under the constant threat of loosing job. After all, the
corporations can move whereever they want.  So we can say, that corporations have grown in power so much, that
they can virtually blackmail the entire governments. "You want to rise the minial wage in India? Ok, so we are moving
to Bangladesh." - for expample.

Globalization is not only about economy. There are many dimensions of it. From cultural point of view I rekon, that we
have all benefited to certain degree. Thanks to the comunication and transport developement it is easier to travel and
learn about diffrent civilisations. The social portals like facebook or tweatter allow us to stay in touch with people from
all arround the world. The fact that todays world is "smaller" than 100 years ago, which makes our lifes much simpler
is, to some extent, a result of globalization too.

As everything, the globalization has its plusses and minisses. Unfortunately, the wealth it brought is not distributed
equally. it's the ritcher who gained most of that phenomenon, whereas the poor actually lost. 

Who Wins?
There are a number of different people who actually do very well in a globalized economy. For example, if
you're able to sell a good or service at a lower price than everyone else, or sell a better product or service than
everyone else, then you are going to be making even larger profits than before! Globalization allows low cost
producers and very high-quality producers to do well.

7
That makes the world's consumers (like us) the big winner! Everyone benefits from lower priced products as
production shifts to lower cost countries.
Additionally, globalization favors larger companies that can afford to make such capital investments. It takes a
lot of money to build an entirely new factory overseas, and bigger companies are more able to do it. They are
also able to better afford the increased transportation costs of moving goods back from a different country.
Because of these new opportunities in transportation, logistics and shipping firms also do well in a globalized
marketplace. Globalization also permits someone who just wants to save money to do well. They can find
cheaper goods than they were able to acquire before, which means that they save money.

Who Loses?
Sounds great, doesn't it? But there are a lot of people who lose at globalization. Take your baker. Unless he
can sell the absolute cheapest bread around, or if he can convince everyone that he sells the absolute best
bread around, then chances are that he is out of business. People will simply go to one of the other ends of the
spectrum.
In a global economy, large companies can often produce their goods per unit cheaper elsewhere, which means
many people who were in manufacturing jobs are finding themselves out of work when companies move to
other locations to take advantage of lower production costs.

Here are 10 ways to promote globalization or help you get started on this journey with your
organization:

1. Travel More.
Your company’s philosophy regarding globalization starts with you. You can set the tone and
learn more about what your goals may be regarding the new global view of business simply by
traveling more. Focus on international travel to get more access to unique opportunities related
to a global marketplace.

2. Recruit Diverse People.

Then, you need to look at your staff and your hiring policies. If you want to take advantage of
the wealth of opportunity that globalization offers, you’ll need to recruit a more diverse staff. Aim
to include a wide variety of different types of people in your company to get access to a whole

8
new way of thinking. Find hidden talent within your community, or reach out beyond your
borders to recruit potential candidates.

3. Encourage Cultural Sensitivity.

A company that uses globalization effectively must also be aware of cultural sensitivity. If you’re
planning to market to different customers from around the world, encourage your workplace to
embrace diversity and understand everyone’s differences. This type of understanding can be
learned with effective professional development opportunities you offer to your employees.

4. Optimize Your Website.

Most companies that have gone global have a website that is optimized for an international
audience. Look at your online presence, and determine your website needs to help push your
company into being more visible to different international communities. You may need to give
your website an upgrade, so users can select the version of your site that fits their region.

5. Widen Your Reach.

Then, it’s time to focus on where you want to go with your products and services and who you
want to reach. To promote to specific individual international communities, look to social media.
There are many other types of social media channels beyond the typical ones used in North
America, like Facebook and Twitter. Find out what social media services are influential in your
specific region.

6. Target Specific Niche Markets.

At first, focus on a few specific niche markets around the globe to see how your offerings will
fare. Spend time getting familiar with the language, the customs, and the issues in this region to
help market your products and services in the best way. Eventually, your hard work will pay off,
and you’ll be able to continue to slowly expand your capabilities.

7. Offer Multilingual Content.

Quality international information on your website also needs to be available in more languages
than just English. Make your site easily switch to different popular languages in your target
audience’s home country. Invest in creating a true content set in different languages rather than
doing a simple Google translate. This way each site visitor gets an accurate version of your
content that’s not lost in translation.

8. Incorporate More Convenience.

To keep your international customers satisfied, you’ll also need to incorporate more convenience
into your customer service. You may need phone operators that work all throughout the different
business hours in various time zones. Have information about your pricing in different currencies
to give users an idea of the true cost. Use online document services for easy remote contract
signing, like those from DocuSign, whose chairman Keith Krach values the idea of globalization in
business.

9
9. Advertise to the World.
Your advertisements must also be customized to each area you intend to do business in. Cultural
differences make a one-size-fits-all approach not really appropriate. Figure out your brand’s
message, and make adjustments when deciding on new promotional campaigns around the
world. You may need to recruit experts in each target market region to ensure your advertising
message accomplishes what you want it to. Certain things like colors, gestures, wording, and
translation could be perceived in a different way around the world.

10. Learn More About Each Culture.

Most of all, a company that has embraced the global business trend realizes the importance of
learning about each culture. Staying ignorant of who you’re really working for is the quickest way
to failure. Through research and visits to each target market’s geographical location, you’ll be
able to develop a stronger understanding about the people and their world. This understanding
could translate to higher profits and more success in your business.

HOW TO PREVENT NEGATIVE EFFECTS

OF GLOBALIZATION

 Increase the Quality of Human Resources

It is common knowledge if exist human resources in today's era of decline. It is caused due to lack of education in
this country. For the sake of overcoming the current era is getting worse due to the globalization of our nation as a
successor shall be to promote the importance of quality education, this gap does not mean we have to do things that are not
right for us to do in the world of education as bribe when entering an existing agency such as schools, universities and even
civil servants. For that we must promote effective educational programs to improve the quality of human resources next
generation. Now days the decreased human resources is not become a private secret but public secret.

       Increasing the soul the spirit of unity, unity, and nationalism
We as a nation itself obliged to increase the sense of nationalism would love to own the land. Because in this era
of globalization humans easily affected by these forward-paced world. For the prosperity of a nation's own people should be
able to bring even boast their own country to the international arena.

Preserve the Customs and Culture of the Region

10
 We shall and must preserve our culture. If we do not preserve the cultures that exist in our country will disappear
and be replaced by western culture. For that we should be able to filter the culture that comes into our country. If the culture
is already ugly we should leave, especially if it's self-defeating even though it is the trend of today. To that end each of us as
citizens - we are obliged to preserve their culture which we may be able to develop it to the international scene

11
12
Cons
Globalization is known for taking away jobs from domestic workers and companies. Let’s assume

the US brick industry will go down if imports from a developing country's prices go down lest the

consumption increases. Small and medium brick companies could find it hard to compete, and they

would shut down. It would result in the unemployment of workers. The larger US brick companies

would experience a long-term decline.

A second disadvantage is the high cost of comparative advantage to the country's prosperity if it is

not managed well. Another disadvantage of globalization is the rise of wages that can affect

corporate profitability. For instance, if a rich country has a comparative advantage in developing
software, then it will enhance the price of software engineers all over the world, and it becomes very

difficult for foreign companies to compete in the global market.



What are the essential demerits of

Globalization?
Globalization has also been criticized on several grounds. Its opponents do not
hesitate to indulge in violence. Workers, peasants, women, students and weaker
sections of society have raised their voice against globalization. In their opinion,
globalization has benefited the rich and harmed the poor. The harmful effects of
globalization save been discussed here.

1 . Exploitation of Underdeveloped Countries:

MNCs, based in developed countries, purchase at lower rates the raw materials of
backward countries, process them in their own countries and sell the manufactured
goods with big profit in backward countries. The huge profit, they make, is taken
back to developed, rich countries.

Of course, the MNCs have opened branches in backward countries, but the local
people who work there are paid much lower salary/wage. These companies hardly
13
spend anything for local development. They victimise poor countries and their
people by exploiting their poverty and helplessness.

2. Increase in Unemployment:
The MNCs employ machines to reduce the number of employees. Further, the
governments of developing countries have started withdrawing investment from
industries in the public sector. All this has led to huge unemployment in those
countries. The larger the unemployment, the larger the poverty.

3. Widening of Rich-poor Gap:

Globalization brings benefits to the rich who are small in number and keeps the
vast majority of people in poverty and misery. It is a game of winners and losers.
Those who are already rich succeed in taking advantage of privatisation while the
poor and weak are doomed to suffer.

4. Harmful Effects of Consumerism:

Globalization produces consumerism. People being attracted by attractive goods
and advertisements, want to buy these goods. They would not hesitate to earn
money for this by unfair means. This has resulted in vast increase in corruption and
other social evils.

5. Adverse Effects on Social Security and Social Welfare:

Because of privatisation, governments in many developing countries are
withdrawing from the sector of social welfare, and private companies have entered
educations, health and other such fields related to development.

As a result of this, poor people are facing a lot of difficulties. They have no access
to expensive educational institutions and hospitals. They cannot go for health
insurance due to poverty. Social welfare has been in disarray because of
globalization.

14
6. Harmful Effects on Small Industries and Small Business:
In the free economy, the big fish has got license to eat the small fish. Small-scale
and cottage industries cannot grow in competition with big ones. Most of them
have begun to close. Similarly, small business people cannot compete with big
ones.

7. Cultural Homogenization:
Globalization would lead to cultural homogenization. Each nation/society has its
own distinct culture, but under globalization the cultures of developing countries
are eroded and they are required to accept the values and norms of developed
countries. In place of plurality of cultures, there will be a monoculture.

8. Hostile to Humanism:
Globalization would kill humanism. It aims at accelerating economic growth, and
economic growth, according to its protagonists, can be quickly attained through
privatisation. Pursuit of growth hardly respects human values. Human concerns
like equality, justice are sacrificed without raising an eyebrow. Humanism thus
falls a prey to globalization

9. Erosion of Democracy:
Globalization has led to the weakening, erosion and even destruction of
democracy. Globalization has considerably increased the wealth and power of
multinational corporations and they have tended to interfere with and control the
economic policy and politics of developing countries.

As a result, many developing countries, one time or another, have helplessly

watched the fall of their democratic governments and their replacement by one-
party governments or military regimes willing to play to the tunes of multinationals
and the countries to which they belong.

10. Gender-Insensitive:
15
Globalization is gender-insensitive. Women have suffered a lot under
globalization. In the privatised economy, the interests and concerns of women,
particularly of poor women, have been seriously ignored.

11. Destructive of Environment:
Globalization would destroy environment. In the name of economic development,
environment is blindly destroyed. Nature is the gift of God. But it is destroyed for
establishing big industries and dams.

12 Negative Aspects of Globalization

Globalization seems to be looked on as an unmitigated “good” by economists. Unfortunately,

economists seem to be guided by their badly flawed models; they miss real-world problems. In
particular, they miss the point that the world is finite. We don’t have infinite resources, or
unlimited ability to handle excess pollution. So we are setting up a “solution” that is at best
temporary.

Economists also tend to look at results too narrowly–from the point of view of a business that
can expand, or a worker who has plenty of money, even though these users are not typical. In
real life, businesses are facing increased competition, and the worker may be laid off because
of greater competition.

The following is a list of reasons why globalization is not living up to what was promised, and is,
in fact, a very major problem.

1. Globalization uses up finite resources more quickly

In fact, there is also a huge increase in world coal consumption (Figure 2, below). India’s consumption is
increasing as well, but from a smaller base.

2. Globalization increases world carbon dioxide emissions. If the world burns its coal more quickly,
and does not cut back on other fossil fuel use, carbon dioxide emissions increase. Figure 3 shows how
carbon dioxide emissions have increased, relative to what might have been expected, based on the trend
line for the years prior to when the Kyoto protocol was adopted in 1997.

3. Globalization makes it virtually impossible for regulators in one country to foresee the
worldwide implications of their actions. Actions which would seem to reduce emissions for
an individual country may indirectly encourage world trade, ramp up manufacturing in coal-
producing areas, and increase emissions over all. See my post Climate Change: Why Standard

16
Fixes Don’t Work.
4. Globalization acts to increase world oil prices.

5. Globalization transfers consumption of limited oil supply from developed countries to

developing countries. If world oil supply isn’t growing by very much, and demand is growing
rapidly in developing countries, oil to meet this rising demand must come from somewhere. The
way this transfer takes place is through the mechanism of high oil prices. High oil prices are
particularly a problem for major oil importing countries, such as the United States, many
European countries, and Japan. Because oil is used in growing food and for commuting, a rise
in oil price tends to lead to a cutback in discretionary spending, recession, and lower oil use in
these countries. Developing countries are better able to use higher-priced oil than developed
countries.  In some cases (particularly in oil-producing countries) subsidies play a role. In
addition, the shift of manufacturing to less developed countries increases the number of workers
who can afford a motorcycle or car. Job loss plays a role in the loss of oil consumption from
developed countries–see my post, Why is US Oil Consumption Lower? Better Gasoline
Mileage? The real issue isn’t better mileage; one major issue is loss of jobs.
6. Globalization transfers jobs from developed countries to less developed
countries. Globalization levels the playing field, in a way that makes it hard for developed
countries to compete. A country with a lower cost structure (lower wages and benefits for
workers, more inexpensive coal in its energy mix, and more lenient rules on pollution) is able to
out-compete a typical OECD country. In the United States, the percentage of US citizen with
jobs started dropping about the time China joined the World Trade Organization in 2001.

7. Globalization transfers investment spending from developed countries to less

developed countries. If an investor has a chance to choose between a country with a
competitive advantage and a country with a competitive disadvantage, which will the investor
choose? A shift in investment shouldn’t be too surprising.

8. With the dollar as the world’s reserve currency, globalization leads to huge US balance of trade
deficits and other imbalances. 9. Globalization tends to move taxation away from
corporations, and onto individual citizens. Corporations have the ability to move to locations
where the tax rate is lowest. Individual citizens have much less ability to make such a change.
Also, with today’s lack of jobs, each community competes with other communities with respect
to how many tax breaks it can give to prospective employers. When we look at the breakdown
of US tax receipts (federal, state, and local combined) this is what we find:

10. Globalization sets up a currency “race to the bottom,” with each country trying to get
an export advantage by dropping the value of its currency.

11. Globalization encourages dependence on other countries for essential goods and
services. With globalization, goods can often be obtained cheaply from elsewhere. A country
may come to believe that there is no point in producing its own food or clothing. It becomes
easy to depend on imports and specialize in something like financial services or high-priced
medical care–services that are not as oil-dependent.

12. Globalization ties countries together, so that if one country collapses, the collapse is likely to
ripple through the system, pulling many other countries with it.

17
REFERENCES
 https://www.preservearticles.com/education/what-are-the-essential-demerits-of-globalization
/11654
 https://www.marstranslation.com/blog/globalization-good-bad#:~:text=The%20best%20part
%20of%20globalization%20is%20that%20it,rate%20reduces%20market%20instability%2C
%20and%20lowers%20opportunity%20costs.
 https://www.preservearticles.com/education/what-are-the-positive-aspects-of-globalization/
23647
 https://oilprice.com/Finance/the-Economy/12-Negative-Aspects-of-Globalization.html
 ssss

18