Vous êtes sur la page 1sur 4

Globalization is not just the coming together and integration of people.

It is the integration of ideas, of

cultures and of values. The pessimists continue the talk about the friction this is generating, but the
endorsers of globalization choose to remain positive about things and go with the flow. The optimists want
to jump on to the bandwagon of the globalized world and reap the benefits of a larger market and a larger
talent pool. And hence, despite the doomsayers, globalization goes on unabated.

Positive Effects of Globalization

It would be rather difficult to discuss the extent of the positives that globalization has had on the world at
large. But still, here are some of the positive effects of globalization and the positive impacts they have
had on so many demographic segments of society.

Increased Competition
One of the most visible positive effects of globalization is the improved quality of products due to global
competition. Customer service and the 'customer is the king' approaches to production have led to
improved quality of products and services. As the domestic companies have to fight out foreign
competition, they are compelled to raise their standards and customer satisfaction levels in order to
survive in the market. Besides, when a global brand enters a new country, it comes in riding on some
goodwill, which it has to live up to. This creates competition in the market and a 'survival of the fittest'

With globalization, companies have forayed into the developing countries and hence generated
employment for them. But it is one of the positive and negative effects of globalization, depending on the
point of view you wish to see it from. It has given an opportunity to invest in the emerging markets and tap
up the talent which is available there. In developing countries, there is often a lack of capital which
hinders the growth of domestic companies and hence, employment. In such cases, due to global nature
of the businesses, people of developing countries too can obtain gainful employment opportunities. But
the developed countries have lost jobs on account of this movement of jobs to the developing world and
hence it is a pinch felt by people in the First World.

Investment and Capital Flows

One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of
companies have directly invested in India, by starting production units in India, but what we also need to
see is the amount of FII that flows into the developing countries. Indian companies which have been
performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes
up the reserve of foreign exchange available in India. This is also one of the positive effects of
globalization in US and other developed countries as developing countries give them a good investment

Foreign Trade
While discussing the positive effects of globalization, how can I leave out the impact of foreign trade on an
economy. Comparative advantage has always been a factor even in the old times. While trade originated
in the times of early kingdoms, it has been institutionalized due to globalization. Previously, people had to
resort to unfair means and destruction of kingdoms and countries to get what they wanted. Today, it is
done in a more humane way, with mutual cooperation. People who operate in uncivilized ways, now have
to face the WTO and other world organizations that have been established with a view to control and
regulate the trade activities of the countries.
Spread of Technical Know-How
while it is generally assumed that all the innovations happen in the Western world, due to globalization,
the know-how also comes into developing countries due to globalization. Without globalization, the
knowledge of new inventions, medicines would remain cooped up in the countries that came up with them
and no one else would benefit. But due to improved political ties, there is a flow of information both ways.
And this point - the spread of know-how, can also be expanded to include economic and political
knowledge, which too has spread far and wide. The most obvious example of the spread of knowledge is
that the Western world today are waking up to the benefits of Ayurveda and Yoga, while the Western
antibiotics and flooding the Indian markets improving the quality of life (and the longevity too) of people in

Spread of Culture
The positive effects of globalization on culture are many! Not all good practices were born in one
civilization. The world that we live in today is a result of several cultures coming together. People of one
culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or
in tune with the times. Societies have become larger as they have welcomed people of other civilizations
and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs
have spread all due to globalization. The same can be said about movies, musical styles and other art
forms. They too have moved from one country to another, leaving an impression on a culture which has
adopted them.

Spread of Education
One of the most powerful positive effects of globalization on women and men both is the spread of
education. Today, you can move in the search of the best educational facilities in the world, without any
hindrance. A person living in US can even go to another continent for a new experience and some
courses which one may not find in the home country. If one is interested, one can even get a
specialization in subjects indigenous to a country and spread that knowledge to the home country. A good
example of that is how the American managers went to Japan to learn the best practices in the field of
mass production and incorporated that knowledge in their own production units.

Legal and Ethical Effects

Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals.
These days due to international courts of justice, these criminals can no longer seek asylum in a foreign
country, but will be brought forward and there will be justice. Due to globalization, there is also an
understanding between the security agencies and the police of two or more different countries who will
come together to global terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective
of which country they choose to hide in. This is undoubtedly one of the greatest positive effects of
globalization on society.

Organizations for Environmental and Social Concerns

In cognizance of the damage that has been caused to our world over the years, the individual nations
have decided to come together to find a way to save our world from ourselves. Organizations monitoring
climate change as well as those which look at the welfare of our animals and marine life, are undoubtedly
one of the positive effects of globalization on the environment.
Opponents of globalization point out to its negative effects. Some of them are listed below.

1) Developed nations have outsourced manufacturing and white collar jobs. That means less jobs
for their people. This has happened because manufacturing work is outsourced to developing
nations like China where the cost of manufacturing goods and wages are lower. Programmers,
editors, scientists and accountants have lost their jobs due to outsourcing to cheaper locations
like India.

2) Globalization has led to exploitation of labor. Prisoners and child workers are used to work in
inhumane conditions. Safety standards are ignored to produce cheap goods.

3) Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant dread of
losing their jobs to competition. Increased job competition has led to reduction in wages and
consequently lower standards of living.

4) Terrorists have access to sophisticated weapons enhancing their ability to inflict damage.
Terrorists use the Internet for communicating among themselves.

5) Companies have set up industries causing pollution in countries with poor regulation of pollution.

6) Fast food chains like McDonalds and KFC are spreading in the developing world. People are
consuming more junk food from these joints which has an adverse impact on their health.

7) The benefits of globalisation is not universal. The rich are getting richer and the poor are
becoming poorer.

8) Bad aspects of foreign cultures are affecting the local cultures through TV and the Internet.

9) Enemy nations can spread propaganda through the Internet.

10) Deadly diseases like HIV/AIDS are being spread by travellers to the remotest corners of the
11) Local industries are being taken over by foreign multinationals.

12) The increase in prices has reduced the government ability to sustain social welfare
schemes in developed countries.

13) There is increase in human trafficking.

14) Multinational Companies and corporations which were previously restricted to

commercial activities are increasingly influencing political decisions.