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Tuesday, 11 September 2018

Globalization

 " Globalization is a process of integration of economies". It means that economies of the world now influence each other in many ways such as trade, culture etc. Although there are various definition of globalization but to understand it in a simple manner we can say that economies are now connected with each other. They can trade freely. Borders for trade are opened.


The costs of Globalization


Risk to national Sovereignty

“Think Globally, act locally”. You would have heard about this slogan. It means that local interest must not be harmed while becoming global. Some observers worry that the proliferation of international agreements undermine local restrictions on production of goods.

Costs of globalisation
Disadvantages of Globalisation


Every country seeks to achieve social welfare by fulfilling it's citizen's objectives. These countries set rules where national priorities are at the top. Due to globalization borders for trade are opened now. Due to this, countries having stringent regulations for production methods suffers because there are countries where these strict labour conditions and production methods for environment protection are not the same. So cheaper production becomes possible in other countries.

Disadvantages of Globalisation
Costs of Globalisation


Small companies depends so much on larger economies for supplies and sales. These small economies are depend too much on larger economies so small economies are forced to follow their unfavorable trade rules. Larger economies counter small economy’s best interest by favoring their country’s interest.

Environment degradation

As we know that for growth, one must not forget that non-renewable natural resources are consumed. Growth is also responsible for environment degradation. Industrial wastes into river and ocean, harmful gases in air and deforestation are affecting the life overall. Apart from this, globalization made possible to buy from distant places. It increase transportation and thereby air pollution.

Argument

Not everyone agrees with the point that globalization is responsible for increased degradation of environment.

Some argue that globalization bring positive results for both; sustaining natural resources and maintaining sound environment on the following facts.

  1. Globalization increases global co-operation. Countries together try to combat this problem by setting standards to combat environmental problems.
  2. Due to increased competition, resources are used efficiently. There is no wastage of resources. Technology is used Eco-friendly such as automobile using few gas.

Growing income inequality and personal stress

From the past, income inequality is a big problem of many countries. Without equality, social welfare cannot be achieved. Income inequality is growing within many countries. Although globalisation has brought opportunities for companies to earn profit by gaining more sales and cheaper supplies but profits earned have going disproportionately.


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