Globalization: Advantages, Disadvantages, and Key Concerns

Introduction

With each passing century, humans all around the far stretches of the globe become closer, in a constantly moving process of global integration that grows more rapid with every year. As technology advances at a breakneck pace, the various sectors of the world become more interdependent. "Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology, and raw materials move ever more swiftly across national borders" (globalpolicy.org). However, it is not just these tangible items that are crossing borders rapidly — ideas, rituals, and cultures are crossing borders just as swiftly, which means that more policies and social movements now develop on an international stage.

Social commentators and historians sometimes treat globalization as a new concept, but it is not. It is something that has occurred between nations for as long as nations have interacted. According to the SUNY Levin Institute, "Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world" (SUNY Levin, n.d.). Globalization has existed for thousands of years because people have been buying and selling to one another all over the world regardless of the distances between them. For hundreds of years, people and companies have made strategic investments in the work of other countries, and many of the traits of globalization that dominate today are comparable to those that were the norm before World War I (SUNY Levin, n.d.).

The globalization of today is not the globalization of seventy years ago. Much of the globalization that defined the twentieth century has direct ties to the Industrial Revolution and the transport of goods across borders (Baldwin, 2018). That earlier form of globalization was measurable, countable, and subject to clear limitations of mechanical and physical infrastructure, as well as clear policies such as taxes and tariffs to regulate it. Globalization today has evolved into a different form that still includes this original, more concrete trade — but now encompasses the exchange of concepts and services as well, with implications for the future that are immense and demand frameworks beyond our narrow twentieth-century paradigms. Yet while globalization has transformed, most people have not updated their thinking accordingly.

One way to illustrate globalization's power is to look back to the year 1000. Grouping India and China together and the G7 nations together, India and China held roughly 50 percent of global gross domestic product while the G7 nations held under 10 percent — a logical reflection of the fact that nearly everyone depended on an agrarian economy and those two regions contained the majority of the world's people. "Starting around the 1820s — the decade economists Kevin H. O'Rourke of Oxford and Jeffrey G. Williamson of Harvard have pegged as the start of modern globalization — the G7 share starts to swell. Over the course of about 170 years, it goes from about one-fifth up to about two-thirds of world income. That's how powerful globalization — the movement of goods across borders — was" (Baldwin, 2018). This demonstrates the sheer transformative force of globalization and its ability to alter economies, lifestyles, and modes of conduct. One could argue that the world is undergoing a similarly powerful transformation in this new, deeper form of globalization.

With each century that passes, the changes in policy and advancements in technology have allowed globalization to occur at a faster rate, leading many social scientists to assert that we are in a new arena of international economic development. As author Thomas Friedman has noted, today globalization is "farther, faster, cheaper, and deeper" — and this is one of the reasons it remains a deeply controversial topic. Policies that have opened up economies all over the world have helped nations far and wide boost their productive potential. More and more companies have engaged in foreign partnerships, with so many of these changes driven by rapid technological advances and the ability to make immediate, informed analyses of economies worldwide (SUNY Levin, n.d.).

Thesis: Globalization is a powerful force that can change the world and the lives within it very rapidly. It is crucial to understand how globalization works — the assets it provides and the challenges it creates — in order to harness its immense power.

Advantages of Globalization

The benefits of globalization are numerous and have made direct and sustainable contributions to society. With every potential benefit of globalization, there is of course a caveat, which demonstrates how often, in the reality of globalization, things do not manifest as they should theoretically. For instance, those who support unfettered globalization point to its potential to unravel some of the more complex issues that plague the world, such as unemployment and poverty (Collins, 2015). Supporters usually connect this to the possibilities that free trade can unleash — minimizing taxes and tariffs — though this is not always borne out in practice. Many G20 nations have continued to add over 1,200 restrictive export and import measures in the last ten years (Collins, 2018). Regardless, those who see the benefits of globalization argue it represents free trade that can create global economic growth, generate jobs, and drive competition between companies, ultimately lowering prices for consumers (Collins, 2018). The caveat, however, is that nations sometimes manipulate their currencies to gain an artificial price advantage (Collins, 2018). Globalization also "provides poor countries, through infusions of foreign capital and technology, with the chance to develop economically and by spreading prosperity, creates the conditions in which democracy and respect for human rights may flourish" (Collins, 2018). While many pessimists regard this as an "ethereal" goal yet to be achieved by most nations, one cannot deny that progress has undeniably been made in spreading prosperity, improving human rights, and disseminating democratic principles.

Technology has been a critical aspect of modern globalization, and the Internet has shaped much of how business is conducted today. There is now a global market for firms and customers who have access to nations they had never previously been able to interact with. Even small villages can now start businesses selling crafts and goods online — handmade baskets, necklaces, and scarves can be made and sold to people all over the world. This development amounts to economic freedom for many people, most notably for women and girls around the world who otherwise had no means of forging economic independence. This transformation reshapes destinies, ensuring that more people have greater possibilities and can chart their own financial paths, no longer dependent on farming alone.

Globalization has also long meant a greater sense of interdependence and interconnectedness. "Gradually there is a world power that is being created instead of compartmentalized power sectors. Politics is merging and decisions that are being taken are actually beneficial for people all over the world" (Collins, 2015). While this may be an overly optimistic reading of current events, globalization has produced a higher level of global consciousness that encourages powerful nations to consider the broader impact of their actions on the world stage.

Another major benefit of globalization is that it fosters a more intense exchange of information among nations — even nations that have little in common. This creates more knowledge and, ideally, greater understanding of countries around the globe. For many decades, America was dismissed abroad as a super-capitalist, fast-food nation intent on materialism and cultural saturation. Globalization has enabled a more nuanced perspective of what America is — including its promotion of individualism, world peace, and self-betterment. The greater the understanding that exists between nations, the greater the opportunity for peace and mutual assistance (Collins, 2015).

Greater information flow between nations also opens the door to deeper cultural exchange. Sharing cultures, rituals, and traditions with neighbors far and wide helps build understanding, and from greater understanding comes a larger possibility for world peace. From a social perspective, globalization has helped forge a higher level of tolerance among people who live differently from one another (Collins, 2015). When it comes to the environment, more governments are working together to address ecological problems (Collins, 2015). While few life-changing solutions have yet emerged from these talks, the first steps are in motion to undo some of the damage already done — and this teamwork is itself a direct result of globalization, which has caused more and more governments to share financial interests. Finally, many people correctly view rapid travel, mass communication, and the speedy dissemination of information via the Internet as direct benefits of globalization (Collins, 2015).

Conclusion

Globalization is as old as time itself. For as long as nations have existed, they have interacted with one another — and this is not going to change any time soon. In order to have a more just and peaceful world, the disadvantages of globalization need to be better managed. However, globalization brings so many benefits and possibilities that it should not be scapegoated in the way it currently is. At its core, globalization is simply trade and the after-effects of trade, and this is a dynamic worth preserving between nations.

The benefits of globalization are clear: it offers massive economic advantages and fosters greater understanding among nations, something that can ultimately contribute to world peace. While the drawbacks — inequality, labor displacement, and cultural erosion — are real, they can be overcome if managed properly. Subsequent efforts on this topic should explore workable solutions for managing these drawbacks. Once the imbalances of globalization are better addressed, it will be able to benefit far more people around the world.

References

Baker, S. A., & Lawson, R. A. (2002, August 1). The benefits of globalization: An economic perspective. Retrieved from

Baldwin, R. (2018, April 30). Globalization is close to its 'holy cow' moment. Retrieved from http://review.chicagobooth.edu/economics/2018/article/globalization-close-its-holy-cow-moment

Collins, M. (2015, May 6). The pros and cons of globalization. Retrieved from https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/

Globalpolicy.org. (2018). Globalization. Retrieved from https://www.globalpolicy.org/globalization.html

Sundby, L. (2018). Advantages and disadvantages of globalization. Retrieved from http://blogs.mtroyal.ca/lynd/foundations-and-icd/advantages-and-disadvantages-of-globalization/

SUNY Levin. (n.d.). What is globalization? Retrieved from http://www.globalization101.org/what-is-globalization/

UN.org. (2016, October 7). Drawbacks of globalization, technology expansion among topics highlighted, at Second Committee, Economic and Social Council joint meeting. Retrieved from https://www.un.org/press/en/2016/gaef3451.doc.htm