bad effects of globalization essay

An economist explains the pros and cons of globalization

Piling up: Global trade has increased, but has it been a positive or negative force? Image:  REUTERS/Tyrone Siu

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Gita Gopinath

Ceri parker.

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Global Governance is affecting economies, industries and global issues

.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved with our crowdsourced digital platform to deliver impact at scale

Stay up to date:, global governance.

Every industrial revolution has driven a wave of globalization. The first wave was driven by innovations such as the steam engine and the industrial weaving machine; the second by the assembly line, the car and the plane; and the third by the digital revolution.

As we enter the fourth wave of globalization, driven by the digital revolution, there is renewed debate over whether it is a beneficial force: powering economic growth, and allowing the spread of ideas to improve people’s lives; or whether it erodes communities, and widens the gap between the elites and the rest of the world.

Globalization results in increased trade and lower prices. It heightens competition within domestic product, capital, and labour markets, as well as among countries adopting different trade and investment strategies.

But how do these impacts net out? What are the positive and negative effects of globalization? The below is an edited transcript of a conversation with Gita Gopinath, Chief Economist of the International Monetary Fund (IMF).

Overall, what are the advantages of globalization?

The advantages of globalization are actually much like the advantages of technological improvement. They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy.

What might be the advantages of globalization that someone would feel in their day-to-day life?

I think something that's not sufficiently appreciated about, for instance, international trade is that it reduces the prices of goods that they consume. So if you look at day-to-day things that you purchase, in terms of washing machines, or cars, or even clothing, because of international trade we've had a decline in prices of these goods, so they have become far more affordable for a lot of people in the world.

How have the benefits played out in advanced economies versus poorer ones over the last three decades?

Both advanced economies and developing economies have benefited overall in terms of having higher productivity, more job creation, and higher wages. As we've always known, and this is true again with technology, there are always some winners and losers. So there are communities and there are workers who lose out when there is more trade integration. That is what we're seeing right now in terms of discontent with international trade.

Who have been the biggest losers?

The biggest losers from international trade are always those whose skills have a cheaper competitor in a different market. So, in the case of the US, it's been those who work in the manufacturing sector because jobs in the manufacturing sector have been outsourced to countries where labour is far cheaper.

On the other hand, in developing countries, more capital-intensive goods get imported more cheaply from the outside. So if you're a manufacturer of a capital-intensive good in a developing country you tend to lose because of that competition.

This is how it is with international trade: production goes to wherever it is most efficient to produce. So, when people in any country are exposed to this kind of competition, some win and some lose.

Is it possible as an economist to come up with a verdict? Has this wave of globalized trade been a net positive or a net negative?

If you say, I'm going to look at it from a measure of overall effect on a country's income, on its purchasing power, on the prices that its people pay, overall I think the evidence that we have all points to it being a net positive.

Now, if you frame the question as, has international trade been good for the manufacturing worker in the US? Then the answer to that would be “not fully”; it's been very costly in terms of jobs and wages for them.

How optimistic are you that this next wave of globalization offers a better future?

I would make a couple of points. First, the previous waves of globalization have been quite successful in lifting a large number of people out of poverty and so we should appreciate that.

The second thing is that any form of globalization will generate winners and losers. So even if you have the perfect, most optimal international trade agreements, there will always be those who lose out because of competition, in the exact same way that people lose out whenever there's a new technology being developed.

And so if we want to make sure that the next wave of globalization is even more successful, it has to be complemented with good, sound domestic policies that help those who are getting left out.

How optimistic are you that the trade war between the US and China will be swiftly resolved?

It's absolutely essential that it be resolved, and it gets resolved in a way that's long lasting. The world economy has lived with the uncertainty about trade tensions for a while now and if there is any solution and there is a sense that the solution is only transitory and something can again get triggered in the future, I think that's very costly.

I'd say I'm mildly optimistic because I think leaders in the world are recognizing that these trade tensions are having a negative effect on their economies and so it would make sense to sit down and resolve it.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:

The agenda .chakra .wef-n7bacu{margin-top:16px;margin-bottom:16px;line-height:1.388;font-weight:400;} weekly.

A weekly update of the most important issues driving the global agenda

.chakra .wef-1dtnjt5{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-flex-wrap:wrap;-ms-flex-wrap:wrap;flex-wrap:wrap;} More on Global Cooperation .chakra .wef-17xejub{-webkit-flex:1;-ms-flex:1;flex:1;justify-self:stretch;-webkit-align-self:stretch;-ms-flex-item-align:stretch;align-self:stretch;} .chakra .wef-nr1rr4{display:-webkit-inline-box;display:-webkit-inline-flex;display:-ms-inline-flexbox;display:inline-flex;white-space:normal;vertical-align:middle;text-transform:uppercase;font-size:0.75rem;border-radius:0.25rem;font-weight:700;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;line-height:1.2;-webkit-letter-spacing:1.25px;-moz-letter-spacing:1.25px;-ms-letter-spacing:1.25px;letter-spacing:1.25px;background:none;padding:0px;color:#B3B3B3;-webkit-box-decoration-break:clone;box-decoration-break:clone;-webkit-box-decoration-break:clone;}@media screen and (min-width:37.5rem){.chakra .wef-nr1rr4{font-size:0.875rem;}}@media screen and (min-width:56.5rem){.chakra .wef-nr1rr4{font-size:1rem;}} See all

Data volume is soaring. Here’s how the ICT sector can sustainably handle the surge

Bart Valkhof and Eleni Kemene

May 22, 2024

How global joint ventures can thrive in times of turmoil

Rahul Khubchandani and Ed Gore-Randall

May 2, 2024

What bullet-proof Kevlar teaches us about cooperation and resilience

Aba Schubert

April 26, 2024

Japan and the Middle East: Japan can be a bridge in an era of global fragmentation and conflict

Kiriko Honda

April 25, 2024

Practice of long-term thinking: How to leverage foresight to address the transformational challenges ahead

Lasse Jonasson

April 24, 2024

Unlocking Africa's $1 trillion food economy: The role of global aid and sustainable technology

Effects of Economic Globalization

Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone.

Social Studies, Economics, World History

Bangladesh Garment Workers

The garment industry in Bangladesh makes clothes that are then shipped out across the world. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day.

Photograph by Mushfiqul Alam

Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. A Historical View Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people. The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America. Benefits of Globalization Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies. With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry , for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts. Globalization affects services, too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school. Consumers benefit also. In general, globalization decreases the cost of manufacturing . This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes. Downsides Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market. The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections. Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization. Into the Future Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another.

Articles & Profiles

Media credits.

The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. The Rights Holder for media is the person or group credited.

Production Managers

Program specialists, last updated.

February 20, 2024

User Permissions

For information on user permissions, please read our Terms of Service. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. They will best know the preferred format. When you reach out to them, you will need the page title, URL, and the date you accessed the resource.

If a media asset is downloadable, a download button appears in the corner of the media viewer. If no button appears, you cannot download or save the media.

Text on this page is printable and can be used according to our Terms of Service .

Interactives

Any interactives on this page can only be played while you are visiting our website. You cannot download interactives.

Related Resources

AskPetersen

Argumentative Essay: Negative Effects of Globalization

Globalization isn’t a new process. It’s actually been around for thousands of years. It’s the process of interaction between people and integration among each other. This includes integration of companies, governments, nations and processes used in the trade across the world. It is a process that has effects on the entire society, environment, politics and culture, as well as the economic development of the world. This can also influence wealth, prosperity and physical well-being of people in the world. Because globalization means that people from great distances buy and sell goods from each other, it also means people have invested in other countries and their companies for centuries. It sounds like there are no negative sides to this collaboration. However, there are bad effects of globalization that might have a stronger influence on the society than the benefits of globalization.

Starting off with the one of the first of negative impacts of globalization, it increase the emissions of CO2. How exactly? The fact is, the companies and enterprises require more and more goods, which means factories burn more coal quickly, thus increasing the release of carbon dioxide into the environment. Needless to say, this has a terrible effect on the environment, causing global warming to speed up and endanger our overall existence in a couple of decades. The more goods and service countries and people require, and the more affordable prices are due to the competitive nature of companies, the higher the negative impact will be on the environment. This is not something companies usually consider as their priority, but is one of the major factors why we are faced with global warming.

Globalization also influences employment in many countries. This process has led to a transfer of jobs from develop, and highly-successful countries to those that are less developed. This means that, less developed countries, that have lower wages overall, inexpensive coal, light rules when it comes to pollution are able to create an atmosphere where other countries can’t possibly compete. Just in the US, the percentage of employed citizens has drastically dropped, especially since China joined the World Trade Organization. However, the globalization negative effects can be seen all around the world, not just in the USA. So many countries are hiring help off shore due to employees who are willing to do the same job, at lower prices, which actually influences the economy of a country in a negative way.

Another one of the negatives of globalizations that ordinary citizens can actually notice is the tax changes. With big companies that can move around to locations where the taxes are lower, citizens feel the changes in taxes the most. People can’t move from location to location, due to their jobs and personal lives. There’s also the fact that with the lack of jobs caused by globalization, communities are basically competing with each other, in the sense who will give more tax breaks to their employers. This in essence means, globalization is transferring taxes over to the ordinary citizens, away from the corporations.

It is a fact that globalization has created a very competitive environment in the entire world. Each country strives to sell as many goods and services, at the lowest price possible. The prices are important, because the lower and more affordable the prices are among competitors, the bigger the demand, because the people are always going for what’s ultimately cheaper. This has triggered the so-called currency race to the bottom. This makes every country drop the value of its currency. And this isn’t the only effect of globalization, when value is concerned. Another way companies cut down on costs and sell at the lowest price is by paying lower wages to their employees, using cheaper fuels that pollute the environment more, and essentially let more pollution into the air causing global warm to become more intense.

One of the major negative consequences of globalization revolved around independence. Or for that matter, the lack of it in certain countries. In a certain way, globalization has encouraged the dependence on certain goods and services in some countries. Certain countries may rely on import more than on the production process overall. This leads to countries stopping to produce their own goods, such as clothing and food, and import it entirely from other countries, putting their well-being into the hands of another country. So far the system has worked, but what happens when dependent countries are left without resources, because the system starts to fail. And this dependence isn’t just on food and clothing, but on technology as well. If a country doesn’t produce their own goods, they are in high risk of a crisis, if these resources potentially stop functioning.

Last but not least, globalization is a process that enables countries to collaborate with each other through integration of systems, making these countries not just possibly dependent on each other but tied together tightly, creating a chain. This chain can mean, if a country collapses due to a certain reason, it is likely to influence other countries it is connected through the system of globalization, endangering all countries it’s connected to. There have been many examples like this in history. Civilizations that started off small, grew and eventually over-utilized their resource base, after which it ended up collapsing. Although this has happened in the past, and our systems have evolved, we are still involved in a very similar situations, if not potentially more dangerous now, because of the large number of countries who are linked together through globalization.

Globalization is an inevitable process that has been around for thousands of years and has continued to develop further using all the resources possible to make trade more efficient. With all of the above mentioned negative effects of globalization, it leads us to the conclusion that if globalization had a negative impact on civilizations and countries before, causing them to collapse completely, this event is bound to happen again in the future. The question is just when.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Writing Correction
• Online Prep Platform
• Online Course
• Speaking Assessment
• Ace The IELTS
• Target Band 7
• Practice Tests Downloads
• IELTS Success Formula
• Essays Band 9 IELTS Writing Task 2 samples – IELTS Band 9 essays
• Essays Band 8 IELTS Writing – samples of IELTS essays of Band 8
• Essays Band 7 IELTS Writing – samples of IELTS essays of Band 7
• Essays Band 6 IELTS Writing – samples of IELTS essays of Band 6
• Essays Band 5 IELTS Writing – samples of IELTS essays of Band 5
• Reports Band 9 IELTS Writing – samples of IELTS reports of Band 9 (Academic Writing Task 1)
• Reports Band 8 IELTS Writing – samples of IELTS reports of Band 8
• Reports Band 7 IELTS Writing – samples of IELTS reports of Band 7
• Letters Band 9 IELTS Writing Task 1 – samples of IELTS letters of Band 9
• Letters Band 8 IELTS Writing – samples of IELTS letters of Band 8
• Letters Band 7 IELTS Writing – samples of IELTS letters of Band 7
• Speaking Samples
• Tests Samples
• 2023, 2024 IELTS questions
• 2022 IELTS questions
• 2021 IELTS questions
• 2020 IELTS questions
• High Scorer’s Advice IELTS high achievers share their secrets
• IELTS Results Competition
• IELTS-Blog App

IELTS Essay, topic: the positive and the negative sides of globalization

• IELTS Essays - Band 8

Even though globalization affects the world’s economies in a positive way, its negative side should not be forgotten. Discuss.

In the present age, globalization is playing an increasingly important role in our lives. But in the meantime whether it is a blessing or a curse has sparked a heated debate. Some people argue that globalization has a fundamentally beneficial influence on our lives, while many others contend that it has a detrimental effect as well.

Admittedly, the profit driven side of globalization has severely affected young people. Today, in the metropolises in different countries, it is very common to see teenagers wearing NIKE T-shirts and Adidas footwear, playing Hip-Hop music on Apple iPods and eating at KFC. The culture that took a thousand years to form just seems similar in these cities; it seems as though you can only distinguish them by their language. Meanwhile, in some developing countries, sweat workshops are always a concerning issue. For instance, reports show that some teenagers employed by NIKE’s contractors work in smelly factories over 14 hours a day, but are only paid fifty cents per hour.

To sum up, I would concede that globalization does come with some adverse effects. Despite that fact, benefits created by it far outweigh the disadvantages. Overall, I am convinced that we should further promote globalization and meanwhile the local government should take measures to combat culture assimilation and sweat workshops.

This essay is extremely long (338 words instead of the advised 250-265). It has a sound structure, your position is clearly expressed, the information is well-organized, and structure-wise the sentences are fine. The vocabulary is impressive and there were only a few grammatical errors (see comments underlined in blue). Overall, this seems to be a band 7.5 + essay.

Click here to see more IELTS essays of band 8

Related posts:

• IELTS essay, topic: Children today are spending more time watching TV than in the past, is it a positive or a negative change? Today children are spending much more time watching TV compared...
• IELTS essay, topic: In the modern world it is possible to shop, work and communicate online without face-to-face contact, is it a positive or a negative development? In the modern world, it is possible to shop, work...
• IELTS essay, topic: Is banning cars from city centres a positive or negative development? This is a model response to a Writing Task 2...

2 thoughts on “IELTS Essay, topic: the positive and the negative sides of globalization”

Pingback:  IELTS Essay Samples of Band 8 | IELTS-Blog

Dear Sir/Madam, You are doing a fantastic job for the students who want to learn the ropes of IELTS examination and methodologies to approach the exam very efficiently. Could you please rate my essay if you have free time? The world is experiencing a dramatic increase in population causing problems not only for poor, undeveloped countries, but also for industrialism and developing nations. Describe some of the problems that overpopulation cause and suggest at least one possible solution.

Almost all countries in the universe face a remarkable population growth in the recent times especially in the past 10 years. As a consequence, all nations regardless of their wealth and development are in risk to experience manifold concerns created by over populace. Some of the significant and thorny issues include provision of basic amenities with other facilities to citizens would become abstruse for a country because of tremendous raise in population. Few recommended practices to efficiently address this critical problem are also highlighted in this order. .

To initialize, overpopulation is one of the major ills that needs to be tackled by a country with utmost sincerity as it causes various problems harshly deteriorating its growth and advancement. For instance, in India, a developing country, the population enhanced from 90 millions in the financial year 2010 to 110 millions in the year 2011 due to which Indian government had to ensure that every citizen receives amenities such as food, shelter, sufficient medical facilities, transport and schooling. In order to achieve this, India has spent nearly 95% of its revenues to the above services alone and therefore it was unable to fund its own industries or new companies thereby yielding a very low growth of 8% against the estimated rate of growth 14% for that year. Even a well developed country like USA could not achieve its planned annual development with laden of more people born minute after minute. In case of poor countries, the conditions will be the worst as they are running out of money for their basic amenities, they will suffer a lot.

Moreover, a country has to provide pollution free environment and job opportunities to the people to maintain the human development index. Particularly, in developing countries like South Africa, the competition for acquiring employment will be rough and tough and eventually unemployment will increase which in turn harm the growth dragging it from worse to worst level. In addition, the wastes and garbage produced by people are to be properly handled by the government in order to avoid environmental pollution which again needs more funds and it will be impossible for non-developed countries to allocate finance to this task. Hence, it is clear that government has to strive hard to buckle down to offer good environment with employment chances to its entire people.

As far as the solutions are concerned, some of the best strategies to deal with this issue are to encourage the people who undertake family planning operations after their second child besides diminishing the social and governmental benefits to the people having many children. For example, people who take family planning should be applauded with many benefits such as some cash prizes, waiver in transportation through government buses and free education to their children. Though this tactic costs an arm and a leg to the government initially, it would an effective way for a long-run. Secondly, with the advent of new scheme, people who will give more births to children will not be entitled to enjoy governmental benefits like free medical facilities to their older family members, educational scholarship for first graduate of their family or the assistance should be reduced to some extent. Furthermore, it is also expected to receive excellent cooperation from its citizens to produce fruitful outcomes of this plan, because a good government is unable to succeed without responsible people paddling their own canoes. Thus, all these approaches are recommended to prevent the disaster rather than combat the adverse effects once they rose as prevention is always better than cure.

Leave a Reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

The State of Globalization in 2021

• Steven A. Altman
• Caroline R. Bastian

Trade, capital, and information flows have stabilized, recovered, and even grown in the past year.

As the coronavirus swept the world, closing borders and halting international trade and capital flows, there were questions about the pandemic’s lasting impact on globalization. But a close look at the recent data paints a much more optimistic picture. While international travel remains significantly down and is not expected to rebound until 2023, cross-border trade, capital, and information flows have largely stabilized, recovered, or even grown over the last year. The bottom line for business is that Covid-19 has not knocked globalization down to anywhere close to what would be required for strategists to narrow their focus to their home countries or regions.

Cross-border flows plummeted in 2020 as the Covid-19 pandemic swept the world, reinforcing doubts about the future of globalization. As we move into 2021, the latest data paint a clearer — and more hopeful — picture. Global business is not going away, but the landscape is shifting, with important implications for strategy and management.

• Steven A. Altman is a senior research scholar, adjunct assistant professor, and director of the DHL Initiative on Globalization at the NYU Stern Center for the Future of Management .
• CB Caroline R. Bastian is a research scholar at the DHL Initiative on Globalization.

Partner Center

Globalization: Definition, Benefits, Effects, Examples – What is Globalization?

• Publié le 21 January 2019
• Mis à jour le 25 March 2024

Globalization – what is it? What is the definition of globalization? Benefits and negative effects? What are the top examples of globalization? What famous quotes have been said about globalization?

What is Globalization? All Definitions of Globalization

A simple globalization definition.

Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.

• Related: Traveling Today And Tomorrow: Cities And Countries With More Travelers

An Official Definition of Globalization by the World Health Organization (WHO)

According to WHO , globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”

What Is Globalization in the Economy?

According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as: “(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”

• Related: Planet VS Economy: How Coronavirus Is Unraveling A Dysfunctional System

What Is Globalization in Geography?

In geography, globalization is defined as the set of processes (economic, social, cultural, technological, institutional) that contribute to the relationship between societies and individuals around the world. It is a progressive process by which exchanges and flows between different parts of the world are intensified.

Globalization and the G20: What is the G20?

The G20 is a global bloc composed by the governments and central bank governors from 19 countries and the European Union (EU). Established in 1999, the G20 gathers the most important industrialized and developing economies to discuss international economic and financial stability. Together, the nations of the G20 account for around 80% of global economic output, nearly 75 percent of all global trade, and about two-thirds of the world’s population.

G20 leaders get together in an annual summit to discuss and coordinate pressing global issues of mutual interest. Though economics and trade are usually the centerpieces of each summit’s agenda, issues like climate change, migration policies, terrorism, the future of work, or global wealth are recurring focuses too. Since the G20 leaders represent the “ political backbone of the global financial architecture that secures open markets, orderly capital flows, and a safety net for countries in difficulty”, it is often thanks to bilateral meetings during summits that major international agreements are achieved and that globalization is able to move forward.

The joint action of G20 leaders has unquestionably been useful to save the global financial system in the 2008/2009 crisis, thanks to trade barriers removal and the implementation of huge financial reforms. Nonetheless, the G20 was been struggling to be successful at coordinating monetary and fiscal policies and unable to root out tax evasion and corruption, among other downsides of globalization. As a result of this and other failures from the G20 in coordinating globalization, popular, nationalist movements across the world have been defending countries should pursue their interests alone or form fruitful coalitions.

How Do We Make Globalization More Just?

The ability of countries to rise above narrow self-interest has brought unprecedented economic wealth and plenty of applicable scientific progress. However, for different reasons, not everyone has been benefiting the same from globalization and technological change: wealth is unfairly distributed and economic growth came at huge environmental costs. How can countries rise above narrow self-interest and act together or designing fairer societies and a healthier planet? How do we make globalization more just?

According to Christine Lagarde , former President of the International Monetary Fund, “ debates about trade and access to foreign goods are as old as society itself ” and history tells us that closing borders or protectionism policies are not the way to go, as many countries doing it have failed.

Lagarde defends we should pursue globalization policies that extend the benefits of openness and integration while alleviating their side effects. How to make globalization more just is a very complex question that involves redesigning economic systems. But how? That’s the question.

Globalization is deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks. All of this requires, on one hand, global consensus and cooperation, and on the other, country-specific solutions, apart from a good definition of the adjective “just”.

When Did Globalization Begin? The History of Globalization

For some people, this global phenomenon is inherent to human nature. Because of this, some say globalization begun about 60,000 years ago, at the beginning of human history. Throughout time, human societies’ exchanging trade has been growing. Since the old times, different civilizations have developed commercial trade routes and experienced cultural exchanges. And as well, the migratory phenomenon has also been contributing to these populational exchanges. Especially nowadays, since traveling became quicker, more comfortable, and more affordable.

This phenomenon has continued throughout history, notably through military conquests and exploration expeditions. But it wasn’t until technological advances in transportation and communication that globalization speeded up. It was particularly after the second half of the 20th century that world trades accelerated in such a dimension and speed that the term “globalization” started to be commonly used.

• Are we living oppositely to sustainable development?

Examples of Globalization (Concept Map)

Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, s ome examples of globalization are:

• Economic globalization : is the development of trade systems within transnational actors such as corporations or NGOs;
• Financial globalization : can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
• Cultural globalization : refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture;
• Political globalization : the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders  or Oxfam ;
• Sociological globalization : information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies;
• Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
• Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions;
• Ecological globalization: accounts for the idea of considering planet Earth as a single global entity – a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it is often said that the poorest countries that have been polluting the least will suffer the most from climate change .

The Benefits of Globalization

Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper.

The Engine of Globalization – An Economic Example

The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.

In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world.

This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays.

Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed – more information ahead).

Globalization Benefits – A Financial Example

At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies, the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation, Decommissioning, Deregulation.

The idea was to simplify finance regulations, eliminate mediators and break down the barriers between the world’s financial centers. And the goal was to make it easier to exchange capital between the world’s financial players. This financial globalization has contributed to the rise of a global financial market in which contracts and capital exchanges have multiplied.

Globalization – A Cultural Example

Together with economic and financial globalization, there has obviously also been cultural globalization. Indeed, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges. This means that different customs and habits shared among local communities have been shared among communities that (used to) have different procedures and even different beliefs.

Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity. Avocados , for instance, grown mostly under the tropical temperatures of Mexico, the Dominican Republic or Peru. They started by being produced in small quantities to supply the local populations but today guacamole or avocado toasts are common in meals all over the world.

At the same time, books, movies, and music are now instantaneously available all around the world thanks to the development of the digital world and the power of the internet. These are perhaps the greatest contributors to the speed at which cultural exchanges and globalization are happening. There are also other examples of globalization regarding traditions like Black Friday in the US , the Brazilian Carnival or the Indian Holi Festival. They all were originally created following their countries’ local traditions and beliefs but as the world got to know them, they are now common traditions in other countries too.

Why Is Globalization Bad? The Negative Effects of Globalization

Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.

The Negative Effects of Globalization on Cultural Loss

Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO , the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.

The Economic Negative Effects of Globalization

Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization. As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population.

• Related: Globally, Business And Government Lack Trust, A New Survey Shows

The Negative Effects of Globalization on the Environment

At the same time, global economic growth and industrial productivity are both the driving force and the major consequences of globalization. They also have big environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity . The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution .

• How Air Pollution And Diabetes Kill Millions Every Year
• Changing Aircrafts’ Altitude To Reduce The Climatic Impact Of Contrails
• Are Avocados Truly Sustainable?

Globalization, Sustainable Development, and CSR

Globalization affects all sectors of activity to a greater or lesser extent. By doing so, its gap with issues that have to do with  sustainable development  and  corporate social responsibility  is short.

By promoting large-scale industrial production and the globalized circulation of goods, globalization is sometimes opposed to concepts such as resource savings, energy savings or the limitation of greenhouse gases . As a result, critics of globalization often argue that it contributes to accelerating climate change and that it does not respect the principles of ecology. At the same time, big companies that don’t give local jobs and choose instead to use the manpower of countries with low wages (to have lower costs) or pay taxes in countries with more favorable regulations is also opposed to the criteria of a CSR approach. Moreover, the ideologies of economic growth and the constant pursuit of productivity that come along with globalization, also make it difficult to design a sustainable economy based on  resilience .

On the other hand, globalization is also needed for the transitioning to a more sustainable world, since only a global synergy would really be able to allow a real ecological transition. Issues such as global warming indeed require a coordinated response from all global players: fight against CO2 emissions, reduction of waste, a transition to renewable energies . The same goes for ocean or air pollution, or ocean acidification, problems that can’t be solved without global action. The dissemination of green ideas also depends on the ability of committed actors to make them heard globally.

• What Are The Benefits Of Having A Network Of CSR Ambassadors?
• 5 Tips For Organizations To Develop Their CSR Strategy In 2020
• Top 10 Companies With The Best Corporate (CSR) Reputation In 2020

The Road From Globalization to Regionalization

Regionalization can also be analyzed from a corporate perspective. For instance, businesses such as McDonald’s or Starbucks don’t sell exactly the same products everywhere. In some specific stores, they consider people’s regional habits. That’s why the McChicken isn’t sold in India, whereas in Portugal there’s a steak sandwich menu like the ones you can get in a typical Portuguese restaurant.

Politically speaking, when left-wing parties are in power they tend to focus on their country’s people, goods and services. Exchanges with the outside world aren’t seen as very valuable and importations are often left aside.

• Related: Why Is It Important To Support Local And Small Businesses?

Globalization Quotes by World Influencers

Many world leaders, decision-makers and influential people have spoken about globalization. Some stand out its positive benefits and others focus deeper on its negative effects. Find below some of the most interesting quotes on this issue.

Politic Globalization Quotes

Globalization quote by the former U.S President Bill Clinton ??

No generation has had the opportunity, as we now have, to build a global economy that leaves no-one behind. It is a wonderful opportunity, but also a profound responsibility.

Globalization quote by Barack Obama , former U.S. president ??

Globalization is a fact, because of technology, because of an integrated global supply chain, because of changes in transportation. And we’re not going to be able to build a wall around that.

Globalization quote by Dominique Strauss-Kahn, former International Monetary Fund Managing Director ??

“We can’t speak day after day about globalization without at the same time having in mind that…we need multilateral solutions.”

Globalization quote by Stephen Harper , former Prime Minister of Canada ??

“We have to remember we’re in a global economy. The purpose of fiscal stimulus is not simply to sustain activity in our national economies but to help the global economy as well, and that’s why it’s so critical that measures in those packages avoid anything that smacks of protectionism.”

Globalization quote by Julia Gillard , Prime Minister of Australia ??

“My guiding principle is that prosperity can be shared. We can create wealth together. The global economy is not a zero-sum game.”

Other Globalization Quotes

Globalization quote by the spiritual leader Dalai Lama ??

“I find that because of modern technological evolution and our global economy, and as a result of the great increase in population, our world has greatly changed: it has become much smaller. However, our perceptions have not evolved at the same pace; we continue to cling to old national demarcations and the old feelings of ‘us’ and ‘them’.”

The famous German sociologist Ulrich Beck also spoke of globalization ??

“Globalization is not only something that will concern and threaten us in the future, but something that is taking place in the present and to which we must first open our eyes.”

Globalization quote by Bill Gates, owner and former CEO of Microsoft ??

“The fact is that as living standards have risen around the world, world trade has been the mechanism allowing poor countries to increasingly take care of really basic needs, things like vaccination.”

Globalization quote by John Lennon, member of the music band The Beatles ??

Imagine there’s no countries. It isn’t hard to do. Nothing to kill or die for. And no religion, too. Imagine all the people. Living life in peace. You, you may say I’m a dreamer. But I’m not the only one. I hope someday you will join us. And the world will be as one

• Business Essentials
• Leadership & Management
• Credential of Leadership, Impact, and Management in Business (CLIMB)
• Entrepreneurship & Innovation
• Digital Transformation
• Finance & Accounting
• Business in Society
• For Organizations
• Support Portal
• Media Coverage
• Founding Donors
• Leadership Team

• Harvard Business School →
• HBS Online →
• Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

• Career Development
• Communication
• Decision-Making
• Earning Your MBA
• Negotiation
• News & Events
• Productivity
• Staff Spotlight
• Student Profiles
• Work-Life Balance
• AI Essentials for Business
• Alternative Investments
• Business Analytics
• Business Strategy
• Business and Climate Change
• Design Thinking and Innovation
• Digital Marketing Strategy
• Disruptive Strategy
• Economics for Managers
• Entrepreneurship Essentials
• Financial Accounting
• Global Business
• Launching Tech Ventures
• Leadership Principles
• Leadership, Ethics, and Corporate Accountability
• Leading Change and Organizational Renewal
• Leading with Finance
• Management Essentials
• Negotiation Mastery
• Organizational Leadership
• Power and Influence for Positive Impact
• Strategy Execution
• Sustainable Business Strategy
• Sustainable Investing
• Winning with Digital Platforms

6 Pros and Cons of Globalization in Business to Consider

• 01 Apr 2021

Throughout history, commerce and business have been limited by certain geographic constraints. In its earliest days, trade happened between neighboring tribes and city-states. As humans domesticated the horse and other animals, the distances they could travel to trade increased. These distances increased further with the development of seafaring capabilities.

Although humans have been using ships for centuries to transport goods, cargo, people, and ideas around the world, it wasn’t until the development of the airplane that the blueprint of a “globalized economy” was laid. This was for a simple reason: You can travel greater distances faster than ever before.

The development of the internet accelerated this process even more, making it easier to communicate and collaborate with others. Today, your international co-worker, business partner, customer, or friend is only a few taps or clicks away.

Globalization has had numerous effects—both positive and negative—on business and society at large. Here’s an overview of the pros and cons of globalization in business.

Access your free e-book today.

What Is Globalization?

Globalization is the increased flow of goods, services, capital, people, and ideas across international boundaries according to the online course Global Business , taught by Harvard Business School Professor Forest Reinhardt.

“We live in an age of globalization,” Reinhardt says in Global Business . “That is, national economies are even more tightly connected with one another than ever before.”

How Globalization Affects Daily Life

Globalization has had a significant impact on various aspects of daily life.

For example, it’s changed the way consumers shop for products and services. Today, 70 percent of Americans shop online. In 2022, there were 268 million digital buyers in the US and by 2025, this number is predicted to reach 285 million.

In addition, the globalized economy has opened up new job markets by making it more feasible to hire overseas workers. This has created a wide range of career opportunities for both job seekers and employers.

The emergence of remote work post-pandemic was also made possible by globalization. According to a survey from WFH Research , only seven percent of paid workdays in the US were remote in 2019. However, this number climbed to 29 percent by January 2024.

Check out the video below to learn more about globalization, and subscribe to our YouTube channel for more explainer content!

Advantages of Globalization

1. economic growth.

It’s widely believed that one of the benefits of globalization is greater economic growth for all parties. There are several reasons why this might be the case, including:

• Access to labor: Globalization gives all nations access to a wider labor pool. Developing nations with a shortage of knowledge workers might, for example, “import” labor to kickstart industry. Wealthier nations, on the other hand, might outsource low-skill work to developing nations with a lower cost of living to reduce the cost of goods sold and pass those savings on to the customer.
• Access to jobs: This point is directly related to labor. Through globalization, developing nations often gain access to jobs in the form of work that’s been outsourced by wealthier nations. While there are potential pitfalls to this (see “Disproportionate Growth” below), this work can significantly contribute to the local economy.
• Access to resources: One of the primary reasons nations trade is to gain access to resources they otherwise wouldn’t have. Without this flow of resources across borders, many modern luxuries would be impossible to manufacture or produce. Smartphones, for example, are dependent on rare earth metals found in limited areas around the world.
• The ability for nations to “specialize”: Global and regional cooperation allow nations to heavily lean into their economic strengths, knowing they can trade products for other resources. An example is a tropical nation that specializes in exporting a certain fruit. It’s been shown that when nations specialize in the production of goods or services in which they have an advantage, trade benefits both parties.

2. Increased Global Cooperation

For a globalized economy to exist, nations must be willing to put their differences aside and work together. Therefore, increased globalization has been linked to a reduction—though not an elimination—of conflict.

“Of course, as long as there have been nations, they've been connected with each other through the exchange of lethal force—through war and conquest—and this threat has never gone away,” Reinhardt says in Global Business . “The conventional wisdom has been that the increased intensity of these other flows—goods, services, capital, people, and so on—have reduced the probability that the world's nations will fall back into the catastrophe of war.”

3. Increased Cross-Border Investment

According to the course Global Business , globalization has led to an increase in cross-border investment. At the macroeconomic level, this international investment has been shown to enhance welfare on both sides of the equation.

The country that’s the source of the capital benefits because it can often earn a higher return abroad than domestically. The country that receives the inflow of capital benefits because that capital contributes to investment and, therefore, to productivity. Foreign investment also often comes with, or in the form of, technology, know-how, or access to distribution channels that can help the recipient nation.

Disadvantages of Globalization

1. increased competition.

When viewed as a whole, global free trade is beneficial to the entire system. Individual companies, organizations, and workers can be disadvantaged, however, by global competition. This is similar to how these parties might be disadvantaged by domestic competition: The pool has simply widened.

With this in mind, some firms, industries, and citizens may elect governments to pursue protectionist policies designed to buffer domestic firms or workers from foreign competition. Protectionism often takes the form of tariffs, quotas, or non-tariff barriers, such as quality or sanitation requirements that make it more difficult for a competing nation or business to justify doing business in the country. These efforts can often be detrimental to the overall economic performance of both parties.

“Although we live in an age of globalization, we also seem to be living in an age of anti-globalization,” Reinhardt says in Global Business . “Dissatisfaction with the results of freer trade, concern about foreign investment, and polarized views about immigration all seem to be playing important roles in rich-country politics in the United States and Europe. The threats in Western democracy to the post-war globalist consensus have never been stronger.”

2. Disproportionate Growth

Another issue of globalization is that it can introduce disproportionate growth both between and within nations. These effects must be carefully managed economically and morally.

Within countries, globalization often has the effect of increasing immigration. Macroeconomically, immigration increases gross domestic product (GDP), which can be an economic boon to the recipient nation. Immigration may, however, reduce GDP per capita in the short run if immigrants’ income is lower than the average income of those already living in the country.

Additionally, as with competition, immigration can benefit the country as a whole while imposing costs on people who may want their government to restrict immigration to protect them from those costs. These sentiments are often tied to and motivated—at least in part—by racism and xenophobia.

“Meanwhile, outside the rich world, hundreds of millions of people remain mired in poverty,” Reinhardt says in Global Business. “We don't seem to be able to agree about whether this is because of too much globalization or not enough.”

3. Environmental Concerns

Increased globalization has been linked to various environmental challenges, many of which are serious, including:

• Deforestation and loss of biodiversity caused by economic specialization and infrastructure development
• Greenhouse gas emissions and other forms of pollution caused by increased transportation of goods
• The introduction of potentially invasive species into new environments

While such issues are governed by existing or proposed laws and regulations, businesses have made climate change concerns and sustainability a priority by, for example, embracing the tenets of the triple bottom line and the idea of corporate social responsibility .

Managing the Risks of Globalization

The world is never going to abandon globalization. While it’s true that individual countries and regions put policies and practices in place that limit globalization, such as tariffs, it’s here to stay. The good news is that businesses and professionals willing to prepare for globalization’s challenges by developing strong social impact skills have the potential to benefit immensely.

Whether you’re a business owner, member of executive leadership, or an employee, understanding the impacts of globalization and how to identify its opportunities and risks can help you become more effective in your role and drive value for your organization.

Taking a course like Global Business is one path toward developing international business skills and gaining an understanding of the macroeconomic, political , and social conditions that continue to impact globalization.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with Global Business , one of our online business in society courses . If you aren't sure which course is the right fit, download our free course flowchart .

This post was updated on February 26, 2024. It was originally published on April 15, 2021.

About the Author

Home — Essay Samples — Sociology — Globalization — Good And Bad Impact Of Globalization

Good and Bad Impact of Globalization

• Categories: Globalisation Globalization

About this sample

Words: 752 |

Published: Feb 8, 2022

Words: 752 | Pages: 2 | 4 min read

Cite this Essay

Let us write you an essay from scratch

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Get high-quality help

Dr. Karlyna PhD

Verified writer

• Expert in: Sociology

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

4 pages / 1919 words

4 pages / 1994 words

6 pages / 2528 words

8 pages / 3854 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on Globalization

The concept of McDonaldization has become increasingly prevalent in various aspects of society. Coined by sociologist George Ritzer, McDonaldization refers to the process by which the principles of the fast-food industry – [...]

Globalisation has changed the way businesses run their operations especially in the 21st century, and because of this the world has become more interconnected than ever before which has led to many multinational companies and [...]

In the last few decades, the number of immigrants in South Korea has been drastically increasing. Therefore, it is inevitable that South Korea has transformed from a homogeneous nation-state to a ‘multicultural society’. So what [...]

In a world where globalization and multiculturalism are becoming increasingly prevalent, the ability to speak more than one language is a valuable asset. Being bilingual opens up a world of opportunities, both personally and [...]

I’d like to begin with explaining the term Globalization with help of the definitions as follows: Globalization refers to all those processes by which the peoples of the world are incorporated into a single world society, [...]

Before I give my answer to the questions given to us, I want to share what I already know about Globalization, State, and Nation. Globalization implies the speedup of developments and trades (of human creatures, products, [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

Essay Sample: What are the Positive and Negative Effects of Globalization?

21 January, 2020

11 minutes read

Author:  Kate Smith

When we talk about globalization, many people don’t seem to realize is that it’s not actually a man-made phenomenon but rather we evolved into these conditions. We live in a globally interconnected world that is mutually complementing. Because countries have always been interdependent, we cannot reverse the process of globalization. To have a thorough understanding of its effects, one must take a closer look at the different areas of society that are affected by this process.

What is globalization?

It is a process of interaction and integration where people, businesses, and governments of different countries come into increasing contact with one another. It is the growing interdependence of the world’s societies. This process is driven technology, international trade, and investment, and it has its impact on the environment, culture, economic development, political systems, and the general well-being of humans.

When did globalization start?

Globalization has affected people and communities across the globe and it has become a controversial issue that is widely debated in the public sphere. Depending on the interpretation of this phenomena, some historians argue that at least some form of globalization has been in existence since the trading between Sumer and the Indus Valley Civilization during the Bronze Age in the 3rd millennium BC. If we adopt a stricter definition of the concept, globalization started in the 15th century when Portugal and Castile sent the first exploratory voyages to the Cape of Good Hope and the Americas.

The history of globalization can thus be divided into three periods:

• 1.0 which spanned from 1492 to 1800 and involved the globalization of countries
• 2.0 from 1800 to 2000 which involved the globalization of companies
• 3.0 which started from 2000 until the present day and involves the globalization of individuals

Today, it has become a buzzword with mostly positive connotations such as the increase in the exchange of knowledge, trade, and capital around the globe that are driven by technological innovations such as shipping containers and more recently the internet. Globalization is considered to enrich the world both culturally and scientifically as well as benefit most people economically. The United Nations has gone as far as to predict that this process may have the power to eliminate poverty in the 21st century.

Related Post: Essay sample:  Taoism vs Buddhism 

Negative effects of globalization

But not everyone agrees with the positive impact of globalization. It has received harsh criticism, in particular from those who oppose the free market economy. The likes of Joseph Stiglitz and Ha-Joong Chan have claimed that globalization doesn’t reduce poverty but in fact preserves it. Even the International Monetary Fund (IMF) has stated that the introduction of new technology and investment of foreign capital in the developing countries may have increased the level of inequality. According to IMF, only a relatively small number of countries are enjoying the benefits of globalization. And the negative effects have been observed in developed countries as well. This mainly concerns companies that have moved their production to cheaper countries, a phenomenon that has resulted in a negative impact on employment in developed countries. The question that arises is whether the benefits outweigh these disadvantages.

What are the drivers of globalization?

In general, three factors have been identified as the main drivers of this process:

Technology has a special role in the globalization process. Many believe that technology is the number one driver behind it, making easier for people, goods, and ideas to move across borders. The development of transportation technology, for example, has made it possible to move vast amounts of products and people in a short period of time. Automation enabled an increase in the production and flow of goods and services, while telecommunications allowed people to exchange information in a matter of seconds. The effect of trade is mainly based on its ability to strengthen interdependence between different countries. In today’s world, it has become almost impossible to be completely self-sufficient. The global marketplace was built by eliminating trade barriers and reducing restrictions on foreign investment. But it was the international investment that drove globalization by increasing economic integration. Many countries have experienced the benefits of international investments, namely foreign direct investments, commercial loans, and foreign portfolio investments. These have created new companies, jobs, and sources of income.

This Essay sample was provided by Handmadewriting essay writer . You may order your own essay at our top-level essay writing service.

Positive effects of globalization

If we look at the positive effects of globalization, there are four main benefits that it has brought us, and many people tend to take them for granted.

Main benefits of globalization:

• Increased competition
• Higher-quality products and services
• Efficient markets
• Stabilized security

The current level of competition in the market is one obvious result of globalization. Competition on a global scale leads to products and services of higher quality. When customers have more options to choose from, their demands also tend to grow, and companies have to react to these new expectations. Domestic companies who wish to survive in the market have to increase their standards to satisfy their customers and be on par with foreign competitors. In addition to increased competition, globalization has generated more efficient markets and stabilized security. Every market should strive to be efficient. In general, the market is efficient when there is an equilibrium between what buyers are willing to pay and what sellers are willing to sell for their goods and services. If companies can improve the way they produce a good or service by outsourcing their processes or by buying from a supplier that offers a discount, they can then lower their prices which increases demand and affordability. And even if some companies choose not to lower prices, they can reallocate these additional profits to increasing their employee’s wages or investing in expansion. Because in our globalized world countries depend on each other, they are unlikely to attack one another. In this way, the economic interdependence of globalization has resulted in stabilized security. In the same process, human rights have been improved. There is now wider media coverage and attention from all over the world when violations of these rights emerge.

Effects on developing countries

While economists don’t agree on the impact of globalization on inequality, it’s impossible to find examples of developing countries that were able to grow over a long period of time without opening up to trade. Globalization itself cannot be held responsible for the poverty in the developing world. It has more to do with poor governance and economic policies and ineffective reforms. There is also no evidence that trade can increase poverty or reduce growth. In contrast, when countries open up to trade, their growth tends to accelerate and their standards of living tend to increase. The benefits of the growth in developed countries also trickle down to the poor countries. However, it’s not always so simple to pinpoint how exactly the developing countries have benefited. This is because globalization has such a large-scale impact on different levels, changing, for example, technology and the macroeconomic conditions. There is also no data available about the general well-being of people in these countries.

Effects on developed countries

When it comes to the social effects of globalization, one must look at the environmental damage, insecurity of the job market, and fluctuating prices. Globalization leads to increased production which means increased utilization of natural resources. More trade also means increased transport and using more fossil fuels. All of this creates pollution and accelerates climate change which has become a serious threat to humanity. The increased competition in the markets has resulted in a fluctuation in prices. Developed countries have been forced to reduce their prices in order to remain competitive against countries such as China which can produce the same goods for a fraction of the cost. Globalization has also changed the job market, and now jobs in the global economy are more insecure and temporary. This has mostly affected developed countries where companies can outsource some of their processes, especially manufacturing but increasingly also functions such as customer support. As a result, many people in the western part of the world are losing their jobs. Globalization has pervaded cultures, too. Some claim that it has caused a loss of cultural boundaries. The increased interaction of western cultures with local cultures in developing countries has led to the melting of previously existing cultural barriers. The negative outcome is that the individuality of these local cultures starts to fade.

Based on this analysis of both positive and negative effects, it has become evident that globalization is a complex process that has large-scale impacts on both developing and developed countries. The positive side of it has to do with the efficiencies and opportunities that open markets create. Companies can sell their products in distant markets with the same ease as in their home countries. It also allows money to flow easily across borders and increases aggregate demand, thus resulting in substantial income growth. On the other hand, all of this creates new risks and uncertainties as markets become more integrated and competition is more intense. Prices and profits also experience more fluctuations and companies find themselves under constant pressure from new competitors and with no or little pricing power. While some of these effects pose serious challenges, globalization is not a phenomenon that can be reversed. We live in an interconnected world where countries depend on each other.

• Bhasin, H. (2017): “What is globalization? What are the positives and negatives of Globalization?” Marketing 91. https://www.marketing91.com/what-is-globalization/
• eNotes: (2018) “What are the drivers of globalization?” https://www.enotes.com/homework-help/what-four-drivers-globalisation-362631
• Kuepper, J. (2018): “The Impact of Globalization on Economic Growth.” The Balance. https://www.thebalance.com/globalization-and-its-impact-on-economic-growth-1978843
• London, C. R. (2013): “When did globalization start?” The Economist. https://www.economist.com/free-exchange/2013/09/23/when-did-globalisation-start
• Mourdoukotas, P. (2011): “The Good, The Bad, And The Ugly Side Of Globalization.”
• Forbes. https://www.forbes.com/sites/panosmourdoukoutas/2011/09/10/the-good-the-bad-and-the-ugly-side-of-globalization/#594d8386483f
• Pavcnik, N. (2009): “How has globalization benefited the poor?” Yale Insights. https://insights.som.yale.edu/insights/how-has-globalization-benefited-the-poor
• Skonieczny, A. (2010): “Interrupting Inevitability: Globalization and Resistance.” Sage Journals. https://journals.sagepub.com/doi/abs/10.1177/030437541003500101

A life lesson in Romeo and Juliet taught by death

Due to human nature, we draw conclusions only when life gives us a lesson since the experience of others is not so effective and powerful. Therefore, when analyzing and sorting out common problems we face, we may trace a parallel with well-known book characters or real historical figures. Moreover, we often compare our situations with […]

Ethical Research Paper Topics

Writing a research paper on ethics is not an easy task, especially if you do not possess excellent writing skills and do not like to contemplate controversial questions. But an ethics course is obligatory in all higher education institutions, and students have to look for a way out and be creative. When you find an […]

Art Research Paper Topics

Students obtaining degrees in fine art and art & design programs most commonly need to write a paper on art topics. However, this subject is becoming more popular in educational institutions for expanding students’ horizons. Thus, both groups of receivers of education: those who are into arts and those who only get acquainted with art […]

Globalization and Environment Essay

Globalization and environment: essay introduction, globalization and environment essay: impact of globalization, globalization and climate change essay: causes of climate change, globalization and climate change essay: successes and failures, globalization and climate change: essay conclusion.

Throughout history, the world has continued to pursue avenues aimed at promoting economic development and integration. Due to economic connections, the world has often been referred to as a global village. Through the process of globalization, countries have a lot in common and have become more dependent than before.

In essence, globalization has had commendable impact in the world, with economic development having been enhanced. Nevertheless, it has negatively affected the environment even though its impact can be changed if certain measures are taken. This paper explores the issue globalization, its impact on the climate, and what can be done to change the situation

Globalization

Globalization has been defined by numerous authors and experts in the world, basing their description on certain factors or a given context. It can be defined as the process that involves causes and consequences of global integration of activities, which may be human or non-human (Najam, Runnalls and Halle 4). In this case, integration revolves around transnational and trans-cultural aspects of people.

Unlike other definitions, this approach acknowledges the fact that globalization is tied to human and non-human factors. In this context, the environment and globalization are connected by ecological processes, whose impact traverse beyond national boundaries and environmental problems, which pose challenges that are not limited to a given country.

Importantly, globalization and the environment intersect at three points: economy, knowledge, and governance. For instance, countries get connected because of economic reasons like consumption needs, which allow highly diffused externalities.

Additionally, lack of resources or excess supply of certain products prompts globalization since no economy around the world is self-reliant to depend on another (Najam, Runnalls and Halle 5). Importantly, globalization promote interaction and sharing of information and practices across borders.

In cases of environmental stress, such indicators are likely to be shared within a short time because of enhanced channels of communication. With regard to governance, different states have found it hard to promote the well-being of people without involving the outside world.

Essentially, environmental standards observed by a given country have the potential of trade and investment on national and global scale (Najam, Runnalls and Halle 6). This aspect has become paramount in promoting business relationships among countries around the world.

As mentioned before, globalization has a wide-range of effects; negative and positive. One of the aspects of human life, which has been affected widely by globalization, is population. It is evident that current demographic patterns do not resemble those witnessed several decades ago.

Cities are growing at an alarming rate, forcing governments to consider the expansion of facilities, which initially met the needs of a small number of people. For instance, research indicates that the number of people living in cities has hit 50% from 5%, two centuries ago (McMichael 1117). In line with this trend, it has been projected that almost two thirds of the world population will be living in cities by the year 2030.

This means that more people are getting attracted to urban centers for various reasons, which may differ from one city to another and country to country. Importantly, globalization has significantly reduced the size of the world by cutting down time and space, which were previously available in plenty.

While more people are getting attracted to cities, the negative effects of this trend are being felt, especially on the natural environment. For example, in the mid 20 th century, only New York had a population of more than ten million. However, this has been overtaken with time, with several cities accommodating millions of people.

Similarly, there were twenty cities, which registered a population of between five and ten million people in the year 2000 (Najam, Runnalls and Halle 5). These trends have been used to project that twenty three cities will have more than ten million people by the year 2015. The main concern is the challenge of meeting the needs of the cities as the number of people increases.

Of great significance is the fact that cities are the leading consumers of energy and contribute approximately eighty percent of the greenhouse gases, emitted into the atmosphere. This has widely led to what is commonly known as climate change.

Climate Change

Climate change has become a major issue around the world, dominating leadership ideologies, yet no significant progress has been made in addressing it. While others may assume that several strides have been made in addressing the issue of climate change, substantive and practical results are yet to be realized.

According to the United Nations Intergovernmental Panel on Climate Change (IPCC), climate change focuses on quantifiable deviations in the state of the climate. In other words, it entails variability in climatic conditions, which may be experienced for a longer period of time than usual, say decades (International Panel on Climate Change 30).

In other words, it refers to measurable change in the climate, over a specific duration, and can be influenced by natural factors or human-related factors. These activities cause alteration of the natural composition of the atmosphere.

According to the IPCC, the temperature of the earth surface has continued to rise, with a deviation of 0.6 o C, from early 1800s. Based on this, the world will experience a huge difference of up to 4.5 o C by the year 2100. Regardless of the difference, which will be recorded, it will be a representation of the highest magnitude in human history (International Panel on Climate Change 36).

As mentioned before, large cities are the leading consumers of energy. They widely contribute to the increase in the temperature of the earth surface as a result of massive industrialization, which attracts people for employment opportunities.

Industries emit greenhouse gases like carbon dioxide and carbon monoxide, which are the leading causes of climate change. These gases are further produced during combustion, and their levels rise when forests are destroyed as pressure heightens on agricultural land due to poor methods of farming.

While every nation is responsible for the effects of climate change, it is doubtless that not all countries contribute to this menace equally. This is based on the fact that there is variation in the quantities of products exported and imported, depending on whether the country is developed or developing.

There is usually an ecologically unequal exchange, since developing countries concentrate on the exportation of resource-intensive products while developed countries focus on exporting services like tourism.

Unlike developed countries, developing countries experience environmental costs, which are never felt by developed countries. In other words, there exists an ecological debt between the two sides, since they contribute to climate change variedly, depending on their levels of emissions (International Panel on Climate Change 37).

From this point of view, it can be argued that all nations of the world bear the responsibility of climate change; it knows no boundaries. While this is the case, citizens equally have a role to play in addressing the issue of globalization and climate change. This analogy is linked to the fact that citizens elect leaders who are supposed to champion ideas and interests of their people (International Panel on Climate Change 37).

These individuals become important in decision-making and initiating safety measures, regarding climate change. In essence, people need to be global citizens in order to view the issue from a global perspective, regardless of their home countries.

The world has in recent years witnessed the emergence of organizations and programs aimed at promoting climate change awareness around the world. Importantly, most of the movements and organizations advocate for a safe environment as a way of promoting sustainable development (International Panel on Climate Change 38). As a result of these efforts, people understand climate change and its negative impact to the environment.

Several treaties like the Montreal Protocol of 1987 and other agreements have been adopted for the purpose of protecting the ozone layer. Whist these successes have been realized, several failures have been registered, including the failure of the Kyoto Protocol and the slow pace at which nations react to climate change issues.

From this presentation, it is clear that globalization has contributed to climate change, which threatens the global environment. Nevertheless, globalization may offer solutions for dealing with climate change. For this to occur, there is need for leaders and citizens to change their attitude towards climate change. Lastly, the fight against climate change can only be won through collective responsibilities and actions.

Works Cited

International Panel on Climate Change. “Climate Change 2007: Synthesis Report.” International Panel on Climate Change, 2007. Web..

McMichael, Anthony. “The urban environment and health in a world of increasing globalization: issues for developing countries.” Bulletin of the World Health Organization 78.9 (2000): 1117-1126. Print.

Najam, Adil, David Runnalls and Mark Halle. “Environment and Globalization: Five Propositions.” International Institute for Sustainable Development, 2007. Web.

• Globalization of the English Language: One of the Most Widely Used Languages in the World
• Globalization and Development
• Natural Gas and Environmentalists Views
• Chernobyl Nuclear Plant Disaster
• Climate Change Affecting Coral Triangle Turtles
• Environmental Conditions in Tunnels Towards Environmentally Sustainable Future
• Economics of Renewable Energy
• Technology Triangle of Sustainable Development of Masdar City
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2019, June 18). Globalization and Environment Essay. https://ivypanda.com/essays/globalization-and-environment/

"Globalization and Environment Essay." IvyPanda , 18 June 2019, ivypanda.com/essays/globalization-and-environment/.

IvyPanda . (2019) 'Globalization and Environment Essay'. 18 June.

IvyPanda . 2019. "Globalization and Environment Essay." June 18, 2019. https://ivypanda.com/essays/globalization-and-environment/.

1. IvyPanda . "Globalization and Environment Essay." June 18, 2019. https://ivypanda.com/essays/globalization-and-environment/.

Bibliography

IvyPanda . "Globalization and Environment Essay." June 18, 2019. https://ivypanda.com/essays/globalization-and-environment/.