Advantages And Challenges Of Globalization

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Introduction
Globalization is the process of international incorporation arising from commercial transaction such as private and governmental sales, investment, logistic and transportation. After the world war two the global institutions manages to lower the barriers to cross- border trade. The technological change especially in communication, information processing transportation technologies.
Benefits of Globalization
 The increase in cross border trade has given the consumers and the producers the wider choice of low cost goods. After the world war two when the global institutions lowered the barriers of trade the business were able to market and sell their products internationally.
 In the developing world the increase in competition, …show more content…

 The shift of service work-the low cost of offshore workers has enticed corporations to move production to foreign countries.

Challenges of Globalization
 The benefits of globalization is not universal. The richer are getting richer and the poor are getting poorer.
 Outsourcing- while it provides jobs to population in the country, takes the job from another country, leaving many without opportunities.
 Although different cultures are able to interact and share their ideas and innovation, everything is beginning to meld, and becomes a loss of tradition and culture.
 There may be a greater chance of disease spread. Globalization has also led to incursion of diseases especially deadly ones like HIV/AIDS spread by travelers in some cases, to the most remote regions in the world.
 There is little international regulations- the challenge that is facing the developing world is to design policies so as to maximize the potential benefit. Government regulations on foreign investment can have a major impact on trade flows. That is why we need improved international rules on investment.
 Economic growth-there has been continued improvement in overall growth performance.
 The exploitation of foreign impoverished …show more content…

World Trade Organization is responsible for the policing of the world trade and the World Bank is set up to promote the economic development. The international institutions are created to restore the benefits of global integration. The role of the international monetary fund focuses on the functioning of the monetary system and on promoting sound macroeconomics policies as a precondition for sustained economic growth (Brenton woods institutions).
The international institutions were created to create benefits for the developing countries but some scholars argued that these institutions have (a) minimal impact on the developing countries.(b) that they capture by the powerful developed countries(c) they capture by private producers and investors and (d) internal dysfunction and failure accountability.
(a) Minimal impact- it is argued that the Institutions have a minimal impact on globalization in the developing countries.it is further argued that the developing countries are increasingly exposed to the world economy because of the changes in policies, technological innovation, decreased communications and transportation. The global institutions were intended to manage the process of integrating the developing economies into the word

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