Competitive Advantage And Disadvantages Of Globalization

Introduction
Globalization can be traced back to hundreds of years ago, when European sovereign seek new trade routes with voyages in 15th century, and expanded in the coming years as colony for trade purpose (OSLAND, 2003). Morrison (2011) defines globalization as a mixture driving process in production and markets, by which products, services, people, companies, capital and technology are able to flow quickly worldwide. In spite of its colonization root, there is no doubt that globalization has tremendously changed the world and changed ways we live (Hamilton & Webster, 2012). Increasing globalization has dramatically stimulated the world economy growth, and consequently aroused many conflicts for both developed and developing countries

In the literature, proponents for globalization always emphasize its direct benefits of lower-cost of goods and services, capital increases, economic growth through more efficient allocation of resources (Sachs, 2005; Bhagwati, 2004; Wolf 2005 and 2010; Stiglitz, 2002; Chang, 2008 and 2010; Chua, 2003; Hamilton & Webster, 2012), and its potential advantages of exposure to new cultures and technologies, more output through efficiency increasing, improved quality goods at lower prices due to increased competiveness in economies of scale in production and gaining access of cheaper sources of outside finance (Oparanma, Hamilton & Zep-Opibi, 2009). As for developed countries, globalization open foreign markets to their business and give their business access to cheaper supplies of goods, components raw materials in developing countries which contributes to their lower cost and more competitiveness (Hamilton & Webster, 2012), and thus globalization account for job creation to developing countries as

“Some critics believe that the structure of the global economy favors developed countries over lesser developed countries” (OSLAND, 2003). While Bigman (2002) discovers that labor-abundant developing countries also have reaped significant gains from export-oriented international trade through an empirical study of GDP per capita of 152 both developing and developed countries who have involved in globalization process in the past two decades, and also reflected some conflicts such as avoiding domestic market development. Therefore critics focus on its destroying environment in developing countries, widening wealth gap between developed and developing countries (Sachs, 2005; Bhagwati, 2004; Wolf 2005 and 2010; Stiglitz, 2002; Chang, 2008 and 2010; Chua, 2003; Hamilton & Webster, 2012) and destroying local economies by contagious economic turbulence because of interdependence of countries, such as the global financial crisis in