Impact of Globalization on Economy, Workers, and Consumers

This essay provides a detailed analysis of the impact of globalization, examining its effects on various aspects of society. It begins with an introduction to the concept of globalization, highlighting its interconnectivity across economic, cultural, and social domains. The essay then delves into the pros and cons of globalization, exploring the benefits such as increased opportunities for businesses, access to larger markets, reduced poverty, and enhanced information sharing. It also addresses the negative impacts, including the challenges faced by workers in developed countries, the potential for cultural homogeneity, and the increased power of multinational corporations. The essay references several academic sources to support its arguments and offers a balanced perspective on the complex consequences of globalization.

Running head: IMPACT OF GLOBALIZATION
IMPACT OF GLOBALIZATION
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Introduction
Globalization is a broad concept that refers to the interconnectivity between various
countries with respect to economic, cultural and social aspects. It involves cross border trades
and flow of information, technology, people and investment (Michie, 2019). The term
globalization has always been an important topic of discussion. The world is now more
connected to each other after huge progression and advancements in communication and
technology. But the question lies elsewhere. The question is how globalization has impacted
country's economy, workers, business and consumers. There have been a number of positive and
negative impacts of globalization with respect to the aforesaid factors. Countries are affected at
different levels because of globalization (Hirst & Thompson, 2019). Although globalization have
helped in the growth of a number of multinationals yet at the same time it has been bad for blue
and white collar workers. Hence it is necessary to understand its impact before drawing any
conclusions. The following paragraph deals with such impacts of globalization on our economy
and other economic, social and cultural factors.
Pros
There are a number of positive impacts of globalization. It creates great opportunities for
business in the countries with less industrialization. It helps the developing countries to tap into
larger markets and get access to large capital flows, cheap import export services, technology
and diversified human resources. Globalization has helped in making the world a better place to
live by reducing poverty and unemployment to some extent (Kaurin & Simic, 2017). Free trade
reduces the taxes and tariffs and promotes economic growth. It has also increased information
sharing and strengthened communication and cross cultural understanding. Goods and services

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become readily available to a number of consumers at cheap rates. Business owners also benefit
from the same as they get access to larger market. The increase in the consumer base makes it
possible for them to sell more even at lower prices. Globalization encourages more trade and
more trade means more jobs. Thus globalization increases employment opportunities and helps
in improving the standard of living as well. Another notable positive impact is the elimination of
currency manipulation (Yan, 2019). In order to get local economic benefit many countries used
to manipulate currencies but with globalization manipulation of currencies are no more required
for getting price advantages. This benefits the consumers.
Cons
As stated earlier there are some negative impacts of globalization as well. The basic
argument against globalization is that it affects the working class. The countries get access to
each other and hence they also get access to cheap labors from other countries. Thus the workers
in developed countries face issues as human resources in developed countries are outsourced to
countries having cheap human resources (Amah, 2019). It is also argued by many that
globalization is a "race to the bottom" as the companies seeks those countries actively, that have
the cheapest labor, weakest protection of the environment and the least wage rate. Globalization
also leads to homogeneity in the culture. If all the people start to follow the culture of some other
country, then that country will lose the importance of their culture and language. Thus
globalization is creating monoculture. Multinational Corporation gets more power as a result of
globalization. It leads to the creation of a political system, where there is huge influence of the
rich people and the eminent people with huge political power (Tsanwani, Mulaudzi &
Raselekoane, 2017).

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References
Amah, O. E. (2019). The New Face of Globalisation. In Globalisation and Leadership in Africa
(pp. 41-54). Palgrave Pivot, Cham.
Hirst, P., & Thompson, G. (2019). The future of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Kaurin, B., & Simic, V. (2017). Globalisation and growth: empirical evidence from CEE
countries. Economic and Social Development: Book of Proceedings, 274-282.
Michie, J. (Ed.). (2019). The handbook of globalisation. Edward Elgar Publishing.
Tsanwani, A., Mulaudzi, T. P., & Raselekoane, N. R. (2017). Culture and globalisation: an
analysis of cultural globalisation in modern era. International Conference on Public
Administration and Development Alternatives (IPADA).
Yan, J. (2019). Globalisation Has Double Sides on Developing Countries: The Benefits and the
Harm. Development, 4(1), 11-14.