The Advantages And Disadvantages Of Globalization

1158 Words5 Pages
Globalization is not an unusual or recent phenomenon. For centuries, people have

witnessed “the opening of local and nationalistic perspectives to a broader outlook of an

interconnected and interdependent world with free transfer of capital, goods, and services

across national frontiers”(Business dictionary). During the Middle Ages, for example,

merchants were trading goods and travelling along the Silk road, which connected Europe

to China. Thanks to those trades, tea was introduced in Europe in the 16th

became part of the English culture as soon as the 17th

has been moving at a faster pace. Thanks to advanced technologies and the omnipresence

of the Internet, it is far easier to communicate as well as reaching more markets for
…show more content…
Wiarda, 2007, p

110). While many features of globalization have been beneficial, others have resulted in

problems for certain economies and countries. Each of the benefits of globalization, from free

trade to the free movement of labour, can also be a downside for specific countries and

economies. One of the biggest downsides of globalization is the harm it can cause to

economies at an early stage of development. Free trade forces all countries to compete using

an even playing field, which puts less developed countries behind their more developed

counterparts. Another downside of globalization is the phenomenon known as ‘labor drain.’

Since globalization allows workers to easily move from one country to another, countries

with limited job opportunities often find it difficult to encourage skilled workers to stay in

their countries (Richard Duncan, 2014). In addition, globalization can also have a negative

impact on taxation especially for businesses, which want to avoid paying taxes in a less

advantageous country regarding taxation. Those businesses will then choose a tax haven such

as Luxembourg, Switzerland or Hong Kong.” Starbucks, for example, had sales of £400m
…show more content…
Although, it is not an illegal process it

cause severe tax gaps in countries economies, which could lead to inflation of prices.

Furthermore, “the global entertainment, media, and information market is one in which

American-style globalization is most hegemonic. Television shows, movies, books, music,

video games, and other entertainment from Europe, especially non-English-speaking Europe,

will likely struggle to achieve the global reach and market penetration that characterize their

American counterparts.”(Howard J. Wiarda, 2007, p 117). Indeed, many critics of

globalization feel that the free movement of labour has resulted in the weakening of specific

cultures in favour of greater economic and cultural hegemony.

To conclude, it is important to highlight that globalization is an unstoppable process that

have many advantages as well as many drawbacks. It had open barriers to trades of goods

and people and up scaled connections between countries in different cultural aspects. In

my opinion, it is primordial to embrace this movement and take very advantages that

More about The Advantages And Disadvantages Of Globalization

Open Document