Globalization has both benefits and disadvantages. Some of the benefits of globalization include more efficient markets, wealth equality, beneficial partnerships, increased opportunities and new solutions to problems. The shortcomings of globalization include unhealthy competition and over-exploitation of the environment.
Globalization refers to the process of international integration as a result of exchange of world views, goods, ideas and cultural elements. It has led to increased integration and interdependence of local and overseas markets. Globalization has brought about efficiencies and increased opportunities through creation of an open market.
People from different parts of the world participate in business with each other without any restrictions. Producers have a huge market to sell their produce, leading to low production costs. Networks are established through which supplies and inventories are effectively managed. Globalization allows money to flow freely across the world, putting the world economy into a continuous cycle of income flow and increased employment. Because of the interconnectedness, growth in one economy triggers growth in other economies.
Globalization enhances the quality of life for all people across the world by allowing them to participate in business from any location. This also helps improve infrastructure, such as railways, to allow for the movement of goods and people. However, unhealthy competition may result from globalization leading to a collapse of smaller companies. Countries with higher production costs are likely to be driven out of the market. Similarly, unlimited business opportunities may drive businesses to the over-exploitation of natural resources, hence hurting the environment.