Globalization: Advantages and Disadvantages
Pros and Cons of Globalization
Economic Globalization
Economic globalization reflects the views of neoliberal and neoclassical thinkers, in which states’ prominence diminishes and the world becomes a single global market of individual consumers.
Advantages:
- Cheaper prices for products and services
- Better availability of products and services
- Easier access to capital and commodities
- Increased competition
- Producers and retailers can diversify their markets and contribute to economic growth
- Access to new markets
- Spread of knowledge and technology
- High standards of living
- Better services
- Development of infrastructure
- Contribution to the world economy
Disadvantages:
- Some countries struggle to compete
- Extractive behavior of some foreign companies and investors in resource-rich countries, preventing economic diversification
- Strong bargaining power of multinational companies *vis-à-vis* local governments
- “Contagion effect” is more likely in times of crises
- Problems of “social dumping”
- Increased competition
- Exploitation of labor and resources
- Instability and terrorism
- Increased global pollution
- Economic inequality
- Job displacement
- Domestic job losses
Cultural Globalization
It refers to the process of transmission of values, ideas, and cultural and artistic expressions.
Advantages:
- Access to new cultural products (art, entertainment, education)
- Better understanding of foreign values and attitudes, leading to less stereotyping and fewer misconceptions about other people and cultures
- Instant access to information from anywhere in the world
- Capacity to communicate and defend one’s values and ideals globally
- Customization or adaptation of global cultural trends to the local environment
- Access to new cultures
Disadvantages:
- Spread of commodity-based consumer culture
- Dangers of cultural homogenization
- Westernization, cultural imperialism, or cultural colonialism
- Some small cultures may lose their distinct features
- Dangerous or violent ideals can also spread faster
Political Globalization
International and supranational actors increasingly shape domestic politics.
Advantages:
- Access to international aid and financial support
- It contributes to world peace
- International organizations are often committed to spreading values like freedom and democracy
- Smaller countries can work together and gain more influence internationally
- Governments can learn from each other
Disadvantages:
- State sovereignty is reduced
- The functioning of international and supranational organizations is often not “democratic” in terms of representation and accountability
- Big countries can shape decisions in supranational organizations
- Sometimes, countries can veto decisions and slow down the decision-making processes
- Coordination is difficult and expensive
Social Globalization
Advantages:
- Knowledge of new ways of life
- Appearance of new currents of thought
- Improving employment conditions and worker’s rights
- Development of healthy lifestyles and similar consumption habits
Disadvantages:
- Problems arise between people of different backgrounds
- Little or no diversity of knowledge and cultures