Many thinkers believe that globalization is a threat as it reduces the role of the state in many countries. Some counter argue that it is an opportunity as it opens up markets to compete in and capture.
Let’s see what good globalization has done for us :
Creating employment opportunities : As globalization has brought every country to a competitive world, so it has led to the generation of numerous employment opportunities. Many companies are moving towards developing countries for labour force. Also as migration of people is now easier it has also created lots of jobs opportunities for those countries who has labour force shortages (generally developed countries). Also if a country is experiencing high unemployment there are increased opportunities to look for work elsewhere. This too reduces geographical inequality.However, this issue (brain drain) is also quite controversial.
Spread of Education : The most important benefit is the spread of education. There are so many educational institution around the world, one can move out from his country to another country for more better opportunities, integrating with different cultures, meeting and learning from various people through medium of education.
Better quality product at cheaper price : due to increase in international trade, intense competition in the market is seen. Lots of products with plenty of option, having different price range to choose for consumers. To stand out in competition, product quality has been enhanced so as to retain the consumers, low or poor quality products adversely affect consumers satisfaction.
Since there are lot of choices available for consumers, the producer can sustain only when the product is competitively priced. Anytime consumer can switch to another product. Therefore, affordable pricing has benefited the consumer in great way.
Increased Capital Flow : Globalization has successfully attracted a lot of firms investing in the developing countries by setting up industrial unit outside their home country leading to huge Foreign Direct Investment (FDI), which helps in promoting economic growth in the host country. Also due to electronic transfer, transferring money through banks is just the click of a button, making work really comfortable for investors.
Improved Infrastructure : This is only due to globalization that many infrastructure facilities relating to transportation is so easy. Connectivity to any part of the world is no more a problem, with various mode of transportation available one can easily deliver the products to customers located to any part of the world. Also circulation of information is no longer a difficult task, it just requires few seconds, due to advancement in communication technology. The internet service has significantly affected the global economy, providing directing access to information and products.
Economic Growth : As due to wide growth of market, we see an increase in demand for various products. As per the demand, producers are venturing into the markets that are on high demand, leading to rise in GDP of the country thereby economic growth. If we see the statistics the GDP of the developing countries has increased twice as much as before.
International Trade : The horizon of international trade has widened, it is not just sale and purchase of commodities. With the process of outsourcing international trade has broadened his horizon. Know the focus can be made on a particular segment of business and certain services can be outsourced. Also flexible EXIM (Export Import Policy) policies, with minimal restriction is proving beneficial to businesses.
Specialized production : Production now days is increasingly specialized. Globalization enables goods to be produced in different parts of the world. For say, my phone whose body was manufactured in Taiwan, assembled in China, its software developed in the USA and sold to me by a retail store in India. This greater specialization enables lower average costs and lower prices for consumers.
