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Advantages & Disadvantages of Globalization


What are the primary advantages and disadvantages of globalization? When looking at globalization, the primary advantage, from my perspective, is tapping new resources. This main advantage of tapping resources reduces scarcity and allows for higher levels of production. Another main driver in globalization is the cost benefit; with advances in technology, we are seeing a convergence in such a system. When time and space become relative to and they can be taken advantage of ,business will find a way. Finally, we look at the time benefits, dealing with organization in different time zones allow for around the clock operations and faster turn around. So when looking at globalization, we see cost, time and resources as the primary advantages to any globalization strategy. Obviously with this come disadvantages. One of the leading concerns relates to a loss of sovereignty and culture. This has been expressed by many of our peers who have experienced this first hand in the USSR. Other concerns relate to the exploitation of underdeveloped countries and overall environmental loopholes that have lead to pollution. Overall, I feel that to minimize these disadvantages we need a global rulebook. There have been many advances in the world of global law, when it comes to the Foreign Corrupt Practices act, but this must be expanded to include other issues besides just corruption. Globalization, I feel, is inevitable but the question is not whether it is going to happen or not, but how it is going to happen. Is it going to be a smooth transition or is it going to be a battle that results in chaos? I feel that globalization has the possibility to raise the living standards on a global scale. My stance on the impact of globalization is that the number one way to raise the living standards of all is to increase productivity. This is a fact. I feel that the argument that only the rich will benefit is something that has been disproven time and time again throughout history. Creative Destruction just as it has happened in the past will create more jobs and raise income, just like every other revolution. When we look at the agricultural revolution and the amount of creative destruction introduced by such a revolution, 95% of the work forces worked in farms where as today only about 5% are in such positions. That is a displacement that not only has benefited all, but also has created more wealth and creation, unlike any other. This revolution ultimately contradicted Thomas Malthus who argued that the earth’s primary resource “food”, could not keep pace with the explosive population. I say today that the primary resource is no longer food innovation. Will we as a culture be able to keep the pace of technology and innovation to sustain the earth in the coming millennium? I see globalization even in the current economic claimant essential. The protective nature of cultures will impose laws and restrain this growth, but as we move to a knowledge and digital society, the world becomes borderless and the world as we know it will be ultimately shifted. I say we shape the future, not hold it back.