Report on the Advantages and Disadvantages of Globalization

This report provides a comprehensive analysis of the multifaceted impacts of globalization on countries and industries. It explores both the positive and negative consequences, including increased standards of living, access to new markets, income disparity, and employment changes. The report examines comparative advantages, terms of trade, and the growth of the agricultural and energy sectors in the context of globalization. It uses facts and figures to illustrate the effects of globalization on countries like Australia and various developing nations, discussing the development of small countries and the influence of subsidies on different sectors. The report aims to provide a balanced view of globalization's influence on the global economy.

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Executive Summary
This report will showcase the positive as well as the negative cases indicating the
advantages and disadvantages of globalization on countries and industries. In this context this
study will mention two negative and two positive impacts of globalization (POLOGEORGIS,
2019). The positive cases, described in this report are evidences of the benefits of globalization.
These are-Increased standard of living due to globalization, which indicates to the enhanced
living standard in LDCs due to the growth of small businesses, access to the new markets due to
free trade induced by globalization (UKEssays.com, 2019). The negative cases, described in this
report are evidences of the curses of globalization. These include increase in the disparity in
income and decrease in employment due to the advent of automation in the industrial sector (The
Balance, 2019). The report will also talk about the comparative advantages faced by several
countries due to the free trade induced by globalization as described in the research paper. In this
context, it mentions how Developed countries with specialization in particular goods and
services gained from international trade with reference to the relative ratio of production
efficiency. This paper will also attempt to explain the reasons as we’ll s the sources of
comparative advantage with reference to relevant facts and figures(The Balance, 2019). Next this
paper will focus on the facts and figures related to the gains of Australia due to the advent of
Globalization (Bhasin, 2019). In this context this paper will provide examples of the
development of a few small countries with reference to the increase in GDP as well as standard
of living of those countries. The relevant facts and figures will also be used in this context.
Along with all these, this paper will also discuss about the terms of trade with reference to
international trade. Further this report attempts to estimate whether terms of trade has been
deteriorated or improved due to the trade liberalization policy of globalization.. The growth of

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agricultural sector due to subsidy induced by globalization is also a point of focus of this paper
(Open Textbooks for Hong Kong, 2019). In this context this study provides examples of some of
the agro-based developing countries and also discussed how the improved irrigation and
advanced seeds enhanced the revenue from farming. This report also provides facts and figures
related to the share of the GDP in those countries due to agricultural development. Finally this
paper throws light on the growth of the energy sector due to subsidy induced by globalization,
specially in the developing countries with reference to car or solar or wing energy. This section
of the paper points out some positive and negative aspects related to the growth of energy sector
with the help of the examples of two or three countries, which have shown tremendous growth in
energy sector, agricultural sector as well as small and medium scale industries. The countries in
the example are chosen on the basis of relative ratio of production efficiency, so that the
principles of comparative advantage can also be discussed. (Raza and Elahi, 2019).

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References
POLOGEORGIS, N. (2019). How Globalization Affects Developed Countries. [online]
Investopedia. Available at:
https://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp
[Accessed 20 Apr. 2019].
UKEssays.com. (2019). Positive and negative effects of Globalization. [online] Available at:
https://www.ukessays.com/essays/economics/positive-and-negative-effects-of-globalisation-
for-business-economics-essay.php [Accessed 20 Apr. 2019].
Bhasin, H. (2019). What is globalization? Positive and Negative Effects of Globalization?.
[online] Marketing91. Available at: https://www.marketing91.com/what-is-globalization/
[Accessed 20 Apr. 2019].
The Balance. (2019). Is Globalization Good or Bad for Developed Countries?. [online]
Available at: https://www.thebalance.com/globalization-good-or-bad-for-developed-
countries-4011193 [Accessed 20 Apr. 2019].
Open Textbooks for Hong Kong. (2019). Positive effects of globalization for developing
country business. [online] Available at: http://www.opentextbooks.org.hk/ditatopic/7202
[Accessed 20 Apr. 2019].
Raza, M. and Elahi, M. (2019). Globalisation, energy usage and sustainability. [online]
Ideas.repec.org. Available at: https://ideas.repec.org/p/pra/mprapa/59323.html [Accessed 20
Apr. 2019].

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