Essay Example: Positive And Negative Effects Of Globalization

Globalization is when the world and different countries are becoming interconnected by trade and culture exchange. In addition, more goods are manufactured abroad due to cheaper materials and wages, improved communications and transportation and less strict environmental laws. This comes with positive and negative impacts to the government, environment, and people. I mostly agree with the statement. ‘Globalization is positive for all.’ To what extent do you agree with this statement?’

On one hand you may agree with the statement ‘Globalization is positive to all.’ To what extent do you agree with this statement?’, as globalization has resulted in increased international trade, companies operating in more than one country, greater dependence on the global economy, freer movement of capital goods and services and recognition of companies such as McDonald’s and Starbucks in LEDCs. These results have led to positive impacts, where Inward Investment by TNC’s helps countries build income, connections and provide new jobs and skills for local people. In addition to bringing income and wealth to foreign and Low-income countries when they buy resources from the local business and shops, it can boost the local economy. The extra money can be used by the government to spend and improve on education, healthcare, and local infrastructure. Globalization can also bring in different cultures, ideas, and lifestyles, allowing people to experience foods and other products not previously in their countries, creating more cultural diversity in a country and could attract more people and business into a country.

On the other hand, Globalization may also not be positive to all. For example, TNCs that operate in foreign countries have their headquarters out of the foreign countries, take most of the profit from the manufacturers in the foreign countries and not the workers and managers who work and manufacture their goods, allowing richest countries and companies to dominate the world trade, even at the expense of low-income countries and developing countries. In addition, companies would rather manufacture in countries without strictly enforced international and environmental laws and with cheap resources and wages, meaning that TNCs may operate in developing countries and LICs in a way that may not be allowed in a MEDC/HIC. This could mean they may pollute the environment, run risks, or ignore international safety regulations or enforce poor working conditions and low wages on local workers. We have seen this happen in China, for example the Highly profitable Sports Company Nike, have been infamously known to have sweatshop locations in China, with poor wage and conditions.

In my opinion, I believe that Globalization can bring many local and financial opportunities to developing countries and local workers, providing locals jobs and a stable income, allowing governments to venture into improving infrastructure and education, as well as people spending and boosting the local economy, due to the increased disposable income. All of these impacts are positive, yet at the cost of the environment, fair wages, fair working conditions and equal distribution of profit amongst companies and workers.