Effects of Globalization on the Environment

positive and negative impacts of globalisation
positive and negative impacts of globalisation

It is important to understand globalization because of its far-reaching and profound effects around the world. Every company wants to excel and dominate the market with innovative products of the highest quality standards. Competition from various firms pushes a company to do better and produce a variety of products to its customers. Here are the diverse ways globalization is affecting people adversely. Many shops were closed down, and some employees were asked to work from home. Managing remote workers have also gotten a lot easier, thanks to tech advancement.

positive and negative impacts of globalisation

The United States constitutes 5% of the global population right now, but it consumes 24% of the world’s energy as a country. We’ve already received a sneak peek of what a global society would be like from a political perspective. The individuals and organizations who spend the most to lobby politicians would receive the best chance of having their needs met first. We’ve seen billions spent in U.S. elections lately to influence legislation and policy to become favorable toward specific outcomes. This issue would translate to a global economy, where only the richest and most influential would influence laws which would impact everyone.

Improved profits through cost saving has produced a shift in the demand curve for labor. Standardized product offerings thorough certified global manufacturing methodologies have afforded the consumer the luxury of being able to take quality for granted. Between 1950 the worldwide infant mortality rate was 174 deaths per 1000, in 1990 this figure had fallen to 64 deaths per 1000. Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curb global terrorism. This is undoubtedly one of the greatest positive, good, negative, and bad impacts or effects of globalization on society or the economy.

When borders become less restrictive around the world, people tend to move to locations where their best opportunities exist. Under the current structure of our planet, impoverished nations with a lower standard of living offer wages that the developed world would find abysmal. Someone in Bangladesh making clothes for 10 hours per day earns less in a month than some workers in the U.S. earn before lunch. Globalization refers to several different concepts all rolled into one package.

Big Data Visualization Techniques and Challenges

I recently graduated with a first class honours degree in business studies from a UK University. I am confident that I would be familiar with the content of any topic that has to do with business, management theories, international relations and social studies. Whether I am presented with coursework, a proposal, a presentation or a dissertation, my nearly four years of experienced in this field will ensure that your request will always be fully met, without compromise.

In conclusion, globalization has a significant impact on the world, both positive and negative impacts. Globalization also involves the worldwide exchange of technology, information and ideas. However, globalization also involves various challenges and negative impacts. Thus, we see that there is a strong connection between globalization and the development or non-development of a country.

While the development of the crisis and its scope cannot be totally attributed to globalisation, the global scale of the crisis was as a result of globalisation. With financial institutions so interconnected, the failure of Lehman Brothers plunged the entire world economy into a depression. On a slightly on a different topic, Foreign Direct Investments by foreign firms in a developing country in the form of infrastructural development can only be possible if markets are open.

One of the most visible positive impacts or effects of globalization is the improved quality of products due to global competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As domestic companies have to fight out foreign competition; they compel to raise their standards and customer satisfaction levels to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to.

People from the U.S. can buy products from China from the comfort of their homes. Communicating with other people thousands positive and negative impacts of globalisation of miles away is a breeze. You can even find out about events happening around the world from the comfort of your home.

  • Equally, those who practice illegal business aiming to get competitors out of trading are prosecuted.
  • Some people establish industries overseas where they get cheap raw materials and labor.
  • Today, folks can buy items and companies even when they do not have adequate purchasing power and the prospect of elevating a loan has become simple in the age of globalisation.
  • The average cost of goods is a key aspect that contributes to increases in the standard of living.
  • Managers within the global face a lot of challenges due to high competition in the industry, good decisions must be made in order to satisfy and maintain their customers and attract more customers for their products.

Most of the people are left unemployed and unable to meet their basic needs resulting in increased criminal activities such as burglary, pickpocketing, murder and drug abuse. The rate of unemployment and poverty keeps growing as the gap between the rich and the poor widens. Price instability is a significant effect of globalization on business. Some people establish industries overseas where they get cheap raw materials and labor.

Positive and Negative Effects of Globalization

Growing interdependence of nations and their activities on one another fostered by the depletion of natural resources; as well as overpopulation (Harris P.R.,2002). 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. 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. This has been done through the usage of free commerce agreements, which permit trade to occur with no restrictions, making it easier and cheaper for countries to take part in worldwide commerce. To summarize, the process of globalization has changed the industrial pattern social life of worldwide people and it has immense impression on Indian commerce system.

It is not only physical borders that are disappearing as a consequence of globalisation; financial institutes are also becoming interconnected . Whenever massive money movement takes place, one system benefits more than the other system (the country experiencing capital flight and/or liquidity crisis). For instance, tax regulations imposed in any country encourage people to withdraw their savings and deposit their money in other countries where taxation is less severe. Because of globalisation, this can be done merely by a click of a computer or through a call to a broker – and billions can be withdrawn from a national economy in a split second. One of the significant positive effects of globalization is the growth in international business. Globalization has led to the formation of multinational companies and investment in other countries with high market competition.

Here’s an overview of the pros and cons of globalization in business. According to economic theory, foreign trade is in principle, beneficial to any country engaged. The international division of labor allocates the resources more efficient whereby it increases the economic welfare of all countries engaged in foreign trade in long run (Kaitilia V and Kotilainen M., 2002). Increased media coverage draws the attention of the world to human rights violations. Global economic growth does not necessarily make people happier, worldwide free trade, should also benefit humanity as well as protect nature, not just reward managers and stockholders.

Countries to set up in developing countries to take advantage of this lax regulation in the process they manufacture products that are harmful to the environment. Because of globalization a lot of companies are moving to areas where their cost of production is low they, in turn, offer cheaper products because they are not expensive to make hence lower prices for consumers. 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 confront and prepare for globalization’s challenges and risks have the potential to benefit immensely. 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.

positive and negative impacts of globalisation

Most bankcards can extract cash in local currency from the thousands of automated teller machines across the world. Also credit cards like Visa, MasterCard and American Express can be used for payments in almost every country in the globe (Scholte J.A., 2000). Additionally, it could trigger a excessive remuneration of capital, because of its higher mobility in comparison with labor. Globalization, or the mixing of societies and people via trade, technology, and enhanced labor markets, has had many optimistic effects on the world.

Globalization Wets Countries do what They do Best

There is no need to move to developed states to seek education because it is readily available in these countries. Enhanced education is a positive impact of globalization in developing countries. The governments of most developing nations provide free training to encourage parents to school their children. Education is compulsory in most developing countries due to globalization because, without it, investors and traders would have a hard time hiring locals. Culture pertains to the way particular people do things as well as their values and believes.

Increasing Employment

The main byproduct of these energy sources comes in the form of greenhouse gas emissions, which significantly contribute to global warming and climate change. The advantages and disadvantages of globalization show us that a world free to move and communicate offers numerous opportunities to pursue. It also shows us a planet where fewer opportunities may exist for workers and families who are employed in low-skill positions. We have many challenges to face in the coming years as the world continues to become a smaller place.

Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization. For information on user permissions, please read our Terms of Service. If you have questions about licensing content on this page, please contact for more information and to obtain a license. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource.

The phenomenon of economic globalisation has accelerated in an unprecedented way as the development of technology has facilitated connections regardless of time and physical location. Economic globalisation has not finished yet; it is more of an ongoing tendency and therefore, from a conservative perspective, economic globalisation can be said to be a matter of degree . Greenhouse gas emissions rose in 2018 despite efforts to curtail them. Micro-plastics invaded our oceans, creating negative impacts on marine life. The waters of our planet are slowly acidifying, creating economic and health impacts every day. Over 200,000 Americans die each year because of pollution exposure.

Almost everyone on the planet knows what these dangers are, including the natural disasters taking place in various parts of the world. Imagine if there weren’t devices or software to make such calls and you have to be physically present at the meeting. Embarking on such trips would be expensive, draining, and time-consuming.

It is alleged that she was beaten in the head with a baton by the police. The first set of protests occurred after Amini’s funeral when women removed their head coverings in solidarity. Since then, there has been an explosion of protests throughout the country, with women demanding more freedom. These protests include people from all walks of life and age cohorts.