by Samee Shaik
Background to Globalization
Factors of Globilization
- Politics: as information technology, people, and money now have access to move freely around the world countries are opening their borders up to immigrants and offering trade agreements to foreign companies, countries are also working together in organizations, such as the United Nations, in order to address world issues such as crime, hunger and poverty, and currents trends in the environment such as global warming.
- Economy: many companies are now relying on international trade and foreign markets in order to achieve maximum revenue with distant countries helping them by offering agreements such as reducing or removing tariffs, outsourcing involves opening factories in foreign countries and offering employment there as the working conditions are much cheaper and productive in comparison
- Culture: individuals around the world are now exposed to popular foreign artifacts such as movies, songs, food, and clothing which may then become popular within their own country, becoming integrated in their own culture
- Technology: people are able to travel and communicate with others far more efficiently than in the past with the emergence of revolutionizing technologies such as the phone by Alexander Graham Bell, planes by the Wright brothers, as the emergence of the internet and information technology thus giving companies and individuals the options to travel or communicate with people in different countries
Benefits of Globalization
- greater free trade results in many global economic advantages such as decreased prices for consumers, lower tariffs for international companies, increased employment worldwide, etc
- assists in the upbringing of developing nations by giving them access to advanced technology as well as an environment in which human rights and prosperity may thrive
- cultural mingling as more individuals have access to information about lifestyles in foreign countries
- trans and multinational companies are able to invest in plants within distant countries providing them with employment
Drawbacks of Globalization
- increased competition between both local and multinational companies
- loss of jobs as companies tend to open plants with cheaper working conditions, these plants also tend to have poor working standards due to the exploitation of the workers
- large companies are able to exploit tariffs and may completely avoid paying taxes in other countries
- quick spread of diseases, such as Ebola and HIV, leading to the onset of pandemics
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