Pros and Cons of Globalization

Pros and Cons of Globalization

Pros:

• Spread of ideas and information
• Ideas and information is spread around the world mainly through trade and the internet and it allows people to be exposed to other cultures and way of thinking
• Increased and easier communication
• The invention of social media such as Facebook, Twitter and Skype has allowed easier communication between people anywhere around the world
• Faster and better travel
• The world has gotten smaller in the sense that people can go to and from a place today faster than ever before due to flight
• More access to other goods and services
• International trade has allowed the flow of goods and services between countries through imports and exports
• Access to markets and resources
• Due to international trade, companies can now sell their goods to other countries who demand a good or service such as Samsung producing smartphones and selling them to countries that demand the phones
• Countries can also gain access to other resources that may not be available to them such as oil and gas for Japan which has no natural resources
• Increased investment
• Many countries can benefit from increased overseas investment mainly from MEDCs that invest in LEDCs 
• LEDCs can be provided with better infrastructure from technology and aid provided to them by MEDCs
• Provides employment
• Transnational corporations are able to provide many countries that are otherwise unable to provide jobs
• Examples include McDonalds or Starbucks, both which can be found in many countries both MEDCs and LEDCs where they provide employment

Cons:

• Exploitation of workers
• Transnational corporations have been criticized for subjecting workers to work with low pay and poor working conditions such as factories in LEDCs that produce goods to be sold to other countries
• An example would be a Nike factory in Bangladesh where workers accept the low pay and poor conditions due to lack availability and of a better job
• Outsourcing
•  Since transnational corporations are looking to generate more profit, jobs are brought to LEDCs due to cheaper labor costs and this causes jobs to be transferred over from the country of origin
• Competition from foreign companies
• Domestic companies in many industries will be forced to compete with many of the larger transnational corporations
• The smaller companies could go out of business if they cannot compete
• Black markets
• Illicit trade is on the rise due to globalization
• There is an increase in counterfeit products being produced and sold at cheaper prices, mainly form China and  it could affect many companies
• Dependence of LEDCs on MEDCs
•  Many countries today are interdependent and so a country can affect another
• LEDCs may be dependent on MEDCs to provide things like investment and employment and this can cause the MEDCs to be in power
• Loss of cultural identity
• The exposure to foreign ideas and pop culture may lead to a loss of cultural identity such as the spread of American pop culture around the world