Globalisation Impact Essay

This essay examines the impact of globalization, analyzing both its positive and negative effects on economies and societies. It explores how globalization has influenced economic growth, technological advancements, cultural exchange, and employment opportunities, while also discussing potential downsides such as cultural homogenization, environmental degradation, and income inequality.

The impact of
globalisation positive or
negative

Table of Contents
INTRODUCTION...........................................................................................................................1
Impact of Globalisation ...................................................................................................................1
Positive impact of Globalisation.................................................................................................1
Negative Impact Of Globalisation..............................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Globalisation refers to the process of operating a business on international scale. This is
the modern way of expansion of a business by channelizing it in various countries (Zajda, 2015).
In this modern era, global community has come to terms with accepting various cultures. This
has allowed the process of globalisation to ease within several countries and people have
excepted foreign culture, products, services graciously. Globalisation has also brought the latest
technology within countries who could not afford to do tech-advancements on their own
resulting in improvement in technology worldwide.
Impact of Globalisation
Globalisation drastically affects the perception of organisations and business practices. It
indeed helps in enhancing the standard of living but also hampers the culture of different
countries (Coker, 2014). In this context, the positive and negative impacts of globalisation is
described below:
Positive impact of Globalisation
 Expansion of Market :- refers to the global reach an organisation gets when it follows
the path of globalisation. The markets of several economies gets opened for trade and an
organisation gets to expand to several places (Arora and Squier, 2018). Several products
within an industry then compete with each other to establish dominance.
 Increased Competition :- when an economy gets opened for global companies it faces
stiff competition with rival companies entering into market. The level of competition
rises as previously there were only domestic companies now international companies
with new technology have entered the market causing the domestic companies to
innovate their product.
 Higher Living Standards :- when an individual living in United Kingdom is able to
purchase products of Asian Countries, America, African Countries, then his living
standards are bound to increase in comparison to a person who is only buying UK
products (Bayne, 2017). Higher living standards imply that a person has more goods at
disposal he can choose the best one and use that in order to get new experience.
 International Co-operation :- refers to the collaboration of countries so that the several
companies could trade their product in foreign countries. It also refers to a situation
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where one country aids the other buy dealing in its economy (Mowforth and Munt, 2015).
This could be in the form of investment in other country through FDI [Foreign Direct
Investment] or through buying stakes in domestic companies assuring that economy of
the country is helped.
 Worldly Exposure :- globalisation leads to expansion of several industries and entering
of foreign companies helps the residential people with several variants to choose from
(Olimpia and Stela, 2017). There is food, music, culture, art, movies, which tends to
expand in several ways. The global phenomenon has helped several industries immensely
as now they have a global market as well to cater to.
 Development of Technology :- refers to the up-gradation in technology occurring as
foreign players with innovative technology have entered the market causing the domestic
giants to improve their technology by doing effective research and development ensuring
that there product does not lag behind foreign products in terms of technology
(Kakabadse, Kouzmin and Kakabadse, 2017). Even the technology scene has been
benefited as people have now been able to choose from a variety of products available for
numerous prices.
 Foreign Currency Reserves :- with trade practices happening within countries the
foreign currency reserves have increased considerably leading to a position of strength
internationally. Many developed countries have flooded their goods in several developing
and third world countries in order to generate as much monetary benefits as they could.
 Creation of Employment Opportunities :- when a company enters in the market of
other country it is not only creating a market for itself, but providing employment
opportunities for the people residing in domestic countries (Ahn, Minshall and Mortara,
2015). This leads to declining of unemployment ratio in domestic country and rotation of
money occurs within the people in a country.
 Infrastructure Improvement :- another positive impact is the creation of infrastructure,
many major companies before entering into another country procure a land and establish
infrastructure which represents their style of work and declares to the domestic country of
world infrastructure. There are chances that domestic country improves its infrastructure
tin order to lure them into their market.
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 Skilled Workforce :- when a company makes investment in foreign countries it expects
that it would be able to get help of skilled workforce available with domestic countries
(Aslund, 2017). If that is not the case then it takes along with them skilled workforce and
train the domestic workforce.
 New Methodologies of Working :- when a new company enters into another country it
takes with them the working methodologies which might be completely difficult to the
other countries. So it has to now learn the methodologies of either domestic country or
train the workers to learn their methodologies of their own making sure the work is
accomplished anyhow. Ensuring exchange of knowledge and ideas.
 More Wealth Equality :- this occurs when more countries are trading with each other
resulting in better exchange of foreign currency resulting in more wealth for all (Buti and
Pichelmann, 2017). This happens when economies of the world are ready to work with
each other ensuring that the flow of money is maintained in each of the country allowing
people with more wealth across the globe.
 Legal Rights :- human rights have considerably improved in various countries of the
world. Now every individual belonging to various race, colour, caste, gender is given
equal opportunity, respect and rights. Allowing them to work without their rights being
violated. This has improved because a global community is now working together and no
one is judged on race, colour, gender as the knowledge and rich culture heritage they
bring is much more important than their ethnicity.
Negative Impact Of Globalisation
 Legal Restrictions :- there might be a possibility of a business to flourish in a country
but if its laws are strict then the company will not be able to establish itself in that region
(Zajda, 2015). There are various legal bindings of which companies have to take a note of
in order to start its business there. If they are able to take into account all the legal aspects
then they can establish business in other countries.
 Employment Disparity :- when employment doesn't occur in the domestic country as
the foreign country has outsourced all its work to his country leading to disparity amongst
the local workers on missing out on the opportunity to work.
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 Cultural Deterioration :- refers to the deterioration caused by the foreign culture as
people have graciously accepted the foreign brands and culture. This has led to them
forgetting their own culture causing trouble to the heritage of one's own country (Coker,
2014). People adapting to the trends and activities of other countries leads to cultural
deterioration, they should make sure that they are able to not violate their culture and
work towards building a cohesive society where global and domestic culture could exist
in unison.
 Rise In Health Risk :- refers to a situation where people from across the globe migrate
into each others countries taking with them several diseases as well causing severe health
related risk amongst various countries. These countries should make sure that rise in
health related risk is avoided.
 Industries preferring cheap labour :- generally industrialist look forward towards
establishing units in countries providing cheap labour (Arora and Squier, 2018). This
ensures that their cost of production gets reduced and they are able to exploit resources in
much less money they had to spend in comparison to developed nations.
 Outsourcing :- people have globalised there periphery ensuring that they are working
across the world but are basically just outsourcing their work. Outsourcing severely
affects the people working in the domestic country as there work is being taken away
from them and given to some worker in foreign country who is willing to do that work in
much less price. This practise has caused many economies of the world drastically.
 Imbalance of Income :- globalisation has led to rich becoming much richer and poor
becoming much poorer. Rich people are able to get their work done in much less time
(Bayne, 2017). This imbalance of income has caused many economies to put restrictions
to some practices and have made sure that they work towards integration of their own
economy. This would enable the government to balance the income of its people.
 Lack of Jobs :- the globalisation has caused lack of jobs in many countries leading to the
government putting restriction on some practices in order to make sure that people in
their country have sufficient jobs. There are several countries which have tried to provide
jobs within their own structure but are unable to do so as in various other countries
people are willing to do the same job in much less salary.
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 Flooded Multi-National Corporation :- there are many countries which are letting
many international MNC's to operate in their country. This let those corporations to
extract natural resources which are cheaply available in home country and exploit the
cheap labour as well (Mowforth and Munt, 2015). This is the scenario prevalent in many
developing countries leading extinction of the natural resources in these countries.
 Satisfying Global Demand is a compelling Task :- in order to satisfy demand of global
population for a product MNC's are willing to go at any levels this has led to excessive
workload on people. They are working leap and bound in order to ensure supplies of the
product leading to deteriorating lifestyle and heinous health conditions.
 Poor laws at Working Place :- when MNC's are operating in developing or third world
countries they hardly take into account the situation at working place (Olimpia and Stela,
2017). They are just focused on revenue model, they are not willing to work towards
betterment of working condition at these places.
CONCLUSION
From this it can be concluded that globalisation is important in order to flourish and
extend the market for an organisation. Economy of any nation also gets strengthen when it opens
the door for other companies. In many countries, it was globalisation that saved them from the
verge of getting bankrupt or sold out. There are various positives in terms of technology
advancement, cultural integration, numerous choices available to consumer all these aspects have
made globalisation necessary for every country. On the downside, because of globalisation
natural resources of many countries got destroyed, people working at cheap salary in order to fill
their stomach, they are sleep and health deprived. They have no equal rights, it has been a
modern form of bondage where a person is unwillingly working in order to satisfy needs. All of
these factors have led to democracies of modern world to contemplate on the level of
globalisation they should go for, also decide the sectors in which they wish to introduce
globalisation and not on the economy as a whole.
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REFERENCES
Books and Journals
Ahn, J.M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs.
Arora, S. and Squier, C., 2018. Areca nut trade, globalisation and its health impact: perspectives
from India and South-east Asia. Perspectives in public health, p.1757913918785398.
Bayne, N., 2017. Current Challenges to Economic Diplomacy. In The New Economic
Diplomacy: Decision Making and Negotiation in International Economic Relations (pp.
97-116). Routledge.
Coker, C., 2014. Globalisation and Insecurity in the Twenty-first Century: NATO and the
Management of Risk. Routledge.
Kakabadse, A.K., Kouzmin, A. and Kakabadse, N.K., 2017. Technostress: over identification
with information technology and its impact on employees and managerial effectiveness.
In Creating futures: Leading change through information systems(pp. 279-316).
Routledge.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Olimpia, N. and Stela, D., 2017. Impact of Globalisation on Economic Growth in Romania: An
Empirical Analysis of Its Economic, Social and Political Dimensions. Studia Universitatis
„Vasile Goldis” Arad–Economics Series, 27(1), pp.29-40.
Zajda, J., 2015. Globalisation and its impact on education and policy. In Second International
Handbook on Globalisation, Education and Policy Research (pp. 105-125). Springer,
Dordrecht.
Online
Aslund, A., 2017. The populism we're not talking about. [Online]. Available
through:<https://www.weforum.org/agenda/2017/04/the-populism-were-not-talking-
about>
Buti, M. and Pichelmann K., 2017. European integration and populism: Addressing
Dahrendorf's quandary. [Online]. Available through:<https://voxeu.org/article/european-
integration-and-populism-addressing-dahrendorfs-quandary>
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