Globalization offers extraordinary opportunities to the countries related with economic and social development. Over the past few decades the globalization become cultural, economic, political and social phenomena that impacted the whole world, and improved trade between the countries by eliminating trade boundaries between the countries. Globalization facilitated the economic development of developing countries and extended financial benefits to the developed nations. Despite of various benefits the globalization was criticized by some experts due to the challenges associated with it such as financial crises, inequality among societies, poverty, and exclusion. Least developed and developing countries face obstacles while participating in global economy. Globalization is beneficial for both developed and developing countries, but even distribution of the social and economic benefits across the globe remains a big question. This papers intends to discuss various benefits and disadvantages associated with the globalization. The paper will describe how countries can be benefited by the globalization and why they should participate in global economy.
South Korea is one of the best example of how a poor country can be benefited by the globalization. During 1960s people of South Korea were living in extreme poverty. They did not have enough income to fulfill even their basic daily needs. Trading of the S. Korea with other countries were almost negligible. The globalization impacted economy development of the country and helped in bringing foreign investment. Various companies across the world invested in South Korea in order to gain the financial benefits. Presently, South Korea is a rich country with good income per person. The country has prosperity, world-class cities, and foreign investment around USD 10 billion. Involvement is global economy impacted economy of Korea in great way and improved social conditions of the country (Mishkin).
Countries that adopt globalization open their economies for the inflow and outflow of products, services, businesses and wealth. These countries integrate internal markets with foreign markets. Globalization not only empowered countries but also the end consumers located in different markets. Various companies expanded their business in foreign countries in order to increase their market share and financial growth, which resulted in increasing the presence of multiple competitors in one industry. All industries excluding few industries that are controlled by the government become ‘perfect market’. Therefore, Globalization helps in removing monopoly or oligopoly and makes markets a place of perfect competition.
In perfect competition situation consumers receive goods at best possible prices and of best quality. Companies to sustain in tuff competition attract customers by offering them various advantages in terms of price, quality and benefits. Globalization also empowered customers by increasing the variety of products and features. Now customers located in America can purchase a car manufactured in Germany. Similarly customers across the world can purchase imported products due to globalization. Various multinational companies such as Nike, Levis, Coca-Cola, PepsiCo, Ikea, P&G, Nestle, and Unilever manufactured and sale their products to the different parts of the world. An investor located in China, India or Japan can purchase U.S. Treasury bill or equity share of Apple stock. Trade of products and services across the globe increased significantly from USD 1 trillion (1960) to USD 15 trillion (2006) (Mishkin).
Globalization is a complex process of developing world in a common cultural forms and institutional structures. Globalization facilitates the development for the common welfare of humankind and to bring equality. Globalization also emphasizes on human right protection, security, rule of law, and peace. Globalization developed social forms to integrate moral and humanistic values that are important for human development.
Philosopher Dallmayr (1998) mentioned that the people from rich west countries should not neglect the intellectual traditions or opinions of the people located in developing or poor countries. Dallmayr said that the globalization brought significant challenges to the normative political theory (Dallmayr). Rawls (1993) is a modern liberal philosopher mentioned that bounded communities consist of schemes that are sufficient to fulfill the purpose of people’s life. Western political theory assumed the presence of communities bounded by the territories. Traditionally politicians and legislative bodies developed policies and models that clearly demarked ‘domestic’ and ‘foreign’ issues (Rawls).
There is a difference of opinion among people on the issue of Globalization. Some find it beneficial for every nation and argue that every country should promote globalization while there are many who believe that globalization is not in the interest of every nation. Various scholars opine that globalization benefits countries that are already developed. These scholars believe that developed countries manipulate the terms and condition of globalization and treaties in their favor and exploit poor countries.
Joseph P. Joyce from the Wellesley college economic department presents a thorough study on this issue. Joyce, in his research study, “Globalization and Inequality among Nations” presents significant data in order to describe his perspective on the issue. Joyce strategically proves that there is not much difference in the economic status of poor nations and corroborates his version with relevant data. Joyce backs his arguments with appropriate data and suggests how poor nations are still in the state of poverty and all the benefits of globalization have been ripped by the developing nations. The Author indicates that there is a substantial change in the economic status of developing nations and they have successfully taken all the benefits of globalization (Joyce).
Joyce portrays how economy of European and other rich countries grew at a higher pace while African and Asian nations missed the train. They did not grow at the same pace and are still lagging in various areas of human development. The economy of rich nations grew substantially and abruptly however people in Asian and African nations are still struggling for their sustenance and livelihood. Joyce, in his study, suggests that globalization is not necessarily beneficial for every nation.
Having observed an overview and succinct analysis of the abovementioned subject, this paper concludes that globalization has benefitted the world in different ways. The whole world has become a village after globalization. There has been significant improvement in the economy of various nations and economic living standard of people has been improved significantly. Conspicuously it appears that globalization has benefited every nation and every society but other aspect of the coin is that globalization has not benefitted every nation. There are people who suggest that globalization has been unnecessary imposed upon poor countries and they have been playing in hands of developed nations. Developed countries have taken all the benefits of globalization and they have improved their own economy by manipulating terms and conditions in their favor.
Dallmayr, Fred. Alternative Visions: Paths in the Global Village. Lanham, MD: Rowman & Littlefield, 1998. Electronic.
Joyce, Joseph P. Globalization and Inequality Among Nations. Scholary Paper. Wellesley, MA: Wellesley College, 2008. Electronic.
Mishkin, Frederic S. The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich. USA: Princeton University Press, 2006. Electronic.
Rawls, John. Political Liberalism. New York: Columbia University Press, 1993.