Globalization is the integration of various economy around the world, this term globalization does not only refer to the economy but also the exchange of knowledge and technology between countries. Globalization contains 4 main sectors in it this are
- Trade and transactions,
- Capital and investment movements,
- Migration and movement of people and the
- Dissemination of knowledge
Globalization is a topic which is a base of every modern business. Every multinational company and small startup are now connected with all over glob. But as usual, every good have something bad in it. Globalization also connected with environmental challenges such as climate change, global warming, cross-boundary water, air pollution, and over-fishing of the ocean etc.
Every MBA and MNC jobs now days have a strong possibility of this globalization topic as the in the GD round. Let’s start today’s GD topic and conclude:
Threats of globalization:
- Globalization offers one of the major threats in society i.e. unemployment. Immigration of labor and workers from undeveloped and developing country to the developed country create the problem of unemployment.
- In recent history, we show that due to immigration total European economy fall down even the great Britain step out from the European economic union
- There is a threat of inequality due to globalization. Inequality between poor and rich and poor country and reach country. Benefits of globalization never reach to the poor it is only for businessmen. According to the World Inequality Report by the World Inequality Lab, because of high and rising inequality within countries, the top 1% richest individuals in the world captured twice as much growth as the bottom 50% individuals since 1980.
- Due to globalization, there is a trade war between developed countries like U.S and China. This situation creating a global cold war and tension movement between many countries.
- Tax heavens: With different taxation norms in different countries citizens park their illicit or unaccounted money in tax havens and avoid taxation from their home countries. The revelations made by Panama offshore leaks and Swiss bank case are case in point.
- Due to globalization, there is a massive impact on the environment. Increasing number of sell demanding more factory’s and plant for that many jungles and forest reserve now turned in to the industry are.
Globalization as an Opportunity
- With globalization, we get more option in technology, science, medicine, and other life hold product on our doorstep.
- Cultural exchange with globalization we get a chance to interact with different cultural peoples which is very important to understanding and making good relationship with the different nation.
- With globalization, peoples get the opportunity to sell their product in a various sector which is making peoples life’s much better and develop.
- With globalization, a nation gets a wide area of investment. The country like India and other developing country investment is one of the important factors to become a developed country. With the investment, a developing country can take big steps towards development.
- Competition: One of the most visible positive effects of globalization is the improved quality of products at competitive price. 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.
- Foreign investment: Multinational corporations are a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows.
- Technological Innovation. Increased competition from globalization helps stimulate new technology development, particularly with the growth in FDI, which helps improve economic output by making processes more efficient.
Globalization is one sector which cannot be ignore by any country, with the development of communication technology we can’t deny globalization. With globalization we have the option to connect more recourse. It is also true that with globalization there is some threats but if we take necessary control measure then we can overcome from the negative impact.