Economic Globalization Pros and Cons

Globalization has a great impact on the world and humankind-from a faster speed of trade to a steep rise in living standards. One should not overlook the economic aspect of globalization, as it more or less influences every single person on the planet. There are two sides to the coin: on one hand, with economic globalization comes prosperity; but on the other, it can also cause a larger gap between the poor and the rich. To understand whether the disadvantages outweigh the benefits that come with that economic prosperity, here’s the list of some of the pros and cons:

Pros

-Global purchases become available

As economic globalization spreads across more and more regions of the globe, it makes global purchases available for everyone, regardless of his/her place of living. People can get products from different parts of the world just by clicking on the screen of their electronic devices. This fast international trade results in a better product variety and, in some cases, a better living.

-The level of mutual trust rises

Globalization results in companies having to work with each other. As a matter of fact, collaboration usually requires a stable level of mutual trust between parties; otherwise, they would not be able to reach a consensus and create prosperity. With the expanding economic globalization, people can largely reduce the colonial aspect of the business empire.

-Innovations lead to a better standard of living

In order to engage and keep their global audience, businesses need to focus on innovations and investments. When innovation occurs, a number of new technologies appear in different fields. The end result is a better standard of living for everyone involved in the development process.

Cons

-International interdependence

Here’s an example: in the midst of the COVID-19 pandemic, many nations could not create their own vaccine, depending on the outer sources. The same goes with weapons and military devices: during wartime, countries would need to produce their own goods, which, for many, would not be possible. Both of the examples show how international interdependence may be a disadvantage of economic globalization.

-Dominant businesses extinguish cultures

There is no doubt that some large corporations are now “invading” the whole world with their products. For instance, Amazon already has 17 international marketplaces around the world. Such invasions of large companies may lead to the diminishing of unique cultural production; thus, extinguishing cultures.

-Diseases spread and develop faster

The number of international flights increases when economic globalization comes into play. A very up-to-date example would be the fast speed with which Coronavirus turned into a global pandemic. Economic globalization was not the last factor in that process.