Assessing the strengths and weaknesses of globalization

Assessing the strengths and weaknesses of globalization Globalization can be defined in a variety of ways since it is a very important term as it influences the global economies. It can be defined as the movement toward communications, financial, economic, and trade integration. Globalization entails opening out beyond nationalistic and local perspectives to a wider outlook of an interdependent and interconnected world through free transfer of goods, services, and capital over national frontiers. Globalization is a term that is frequently employed to place a trend in the direction of increased flow of ideas, money, goods, and services across national borders and the resultant consolidation of the global economy (Waters 2001, pg.36). Globalization is closely related to international trade which can be defined as the exchange of goods, services, and capital across territories or national border. The increase in the international trade enhances the continuance of globalization. If there were no international trade, then apparently nations w ould not get access to the variety of goods and services produced in different nations of the world (World Bank 2008, pg.56). It has been found that globalization does not involve unhindered labor movement, and as intimated by some economists, globalization may hurt fragile or smaller economies if practiced indiscriminately. Globalization is generally recognized as being goaded by a combination of technological, political, economic, biological and socio-cultural factors. From some other perspective, globalization can refer to the multinational circulation of languages, popular culture, or ideas by acculturation (Tomlinson 1999, pg. 123). This paper will provide an outstanding analysis of the weaknesses and strengths the term globalization. Strengths of globalization Supporters of globalization contend that globalization can possibly better the world economically by solving many problems which are deep-seated for example poverty and unemployment. According to the economic theory, inc reased globalization will lower the wage of unskilled labor in developed nations and raise the wage of unskilled labor within the developing nations as the two groups start to trade with each other. Globalization generates resources and encourages the transfer of ideas that can be utilized for both individual and community improvement. Among many other things, globalization makes rural economic diversification and agricultural productivity gains more achievable. Globalization also makes environmental stewardship, improved conditions of living, and food security more attainable. Due to globalization, the marginal can now get the opportunity to exhibit themselves in the world market (Bauman 1998, pg.121). Globalization encourages the industrialized nations to provide significant market places for exports of poor individuals within poor countries. The global agricultural and food companies can assist the third world countries incorporate required safety, and quality practices by gettin g access to markets in developed nations. Since globalization means delocalization of various enterprises within the word, many people can get access to many industries and in due course globalization promotes economic growth in the global world, brings about competition among companies, enables producers and retailers to reduce the prices of various commodities so that consumers can afford them and therefore increases the demand on the commodities. Because of the increased efficiency, the welfare is raised by offering more affordable goods and services such that the purchasing power is increased. Globalization reallocates capital and labor to more efficient and effective lines of production. Globalization helps poor countries by infusions of technology and foreign capital which enhances economic development. The economic development due to globalization brings modern ways of connecting people, from roads to electricity to telecommunications. The global companies offer training to e mployees and provide time, money and talent that helps them to address needs of the community, lifting communal and individual aspirations and providing ways for accomplishing them. Since globalization brings about spreading of prosperity, it enables various countries to possess conditions in which respect for human right and democracy can flourish (Appadurai 1996, pg.65).