Advantages of Globalization:
Resources of different countries are used for producing goods and services they are able to do most efficiently.
Consumers to get much wider variety of products to choose from.
Consumers get the product they want at more competitive prices.
Companies are able to procure input goods and services required at most competitive prices.
Companies get get access to much wider markets
It promotes understanding and goodwill among different countries.
Businesses and investors get much wider opportunities for investment.
Adverse impact of fluctuations in agricultural productions in one area can be reduced by pooling of production of different areas.
Disadvantages of Globalization:
Developed countries can stifle development of undeveloped and under-developed countries.
Economic depression in one country can trigger adverse reaction across the globe.
It can increase spread of communicable diseases.
Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale.
Benefits of Globalization
The rise of globalization has created interdependent markets that highlight the pros and cons of leveraging foreign exchange. Many proponents of global business argue that mutual benefits derive from the global specialization of products and services. The general stance is that the benefits of globalization outweigh the economic and social costs by achieving higher efficiency and by providing GDP growth in underdeveloped regions.
One pro-globalization argument involves how, based on per capita GDP growth rates, developing countries become wealthier. In the 1960s, non-globalized economies grew at an annual rate of 1.4% while globalized economies grew at 4.7%. Another relationship between globalization and GDP was seen in the 1990s when developing countries had 5.0% annual growth compared to only 2.2% annual growth in economies that had been globalized for longer. This correlation between globalization and annual growth demonstrates benefits to international trade, economic development, and standards of living.
Rise of Political Philosophies
A second argument in favor of globalization involves the rise of political philosophies, based on the assumption that free markets follow a natural trajectory towards democratic and capitalistic philosophies. This argument has two key assumptions, the first being that these political perspectives represent an overall improvement on standards of living and the second being that the correlation between globalization and these principles is significant. Using these assumptions, increasing global trade increases political stability and also increases job opportunities, technological progress, and equality.
Better Quality of Life
Although there is opposition to globalization from religious and social activists, proponents argue that the widespread availability of global goods, services, and ideas positively impacts the lifestyles of citizens.
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