Globalization simply refers to a pattern, in which social, economic, and political changes occur on the international level. It is a process in which the different businesses of the world, starts operating, developing and improving the influences on the international level. It is now a global phenomenon that starts spreading around the world three decades ago. It is improving the patterns of communications, and interaction between people, organizations, industries, governments, and enterprises between different countries. It emerged with the spread of the international trade, improved with time and increased the usage of information technology. The national and international strategies are changed, and trading patterns of world trade are now much improved due to the spread of globalization. It narrowed the distances between countries due to the revolution of information technology and different ways of communication. It impacted on the pattern of international trade also on the cultures, economic growth and development of countries, political systems, and behavioral patterns of people all over the world. Now it is too easy to connect with anyone across the globe, due to the phenomenon of globalization. Globalization improved the trends of global markets and developed the international trade such as free trade, but it has a darker side as well in which it is negatively impacting the developing nations and creating issues like trade deficit, diseases, trafficking, kidnapping, rape, murders, cyber crime, poverty issues, labor issues, and unemployment problems.
The international organizations are the ones that are taking most advantages of globalization. These companies are expanding, improving, gaining profits, and adding a great value in the global market economies. These organizations are competitive and taking advantages of globalization by spreading their business all over the world. These companies include the HSBC (Hong Kong Shanghai Banking Corporation), Google, Amazon, Ali Baba, Apple, Samsung and many more. Due to the spread of information technology, better ways of communication, and concepts of international trends, the international trade patterns are changed in the form of free trade. It decreased the ratio of tariff, taxes, interest rates, and subsides on the goods in the different countries. The low trade barriers in the world are improved and developed which encourages jobs on the international level. The democratic policies spread and improved in the countries due to globalization. Globalization also provided a great opportunity to the people of different world countries to buy products on the international level according to their needs and choices. Information and knowledge have now several ways to spread and it is very easy to access different kind of information within no time. Due to different communicative methods and the increased rate of information technology spread it is much easy now to learn about different cultures of the world and communicate with different types of people around the world. Competitive people around the world have the opportunity now to apply in the international organizations and these organizations are recruiting people from different countries. International enterprises are spreading its businesses all over the globe by opening its franchises in different countries that provide a chance to the labor force of these countries to work with the international organizations. Different countries that are having the improved forms of international trade are gaining benefits and enjoying the economic gains due to the globalization (Cowen, 2016).
Globalization is creating issues more than its advantages in the form of diseases, trafficking, kidnapping, rape, murders, cyber crime, poverty issues, labor issues, and unemployment problems. Globalization is good for the international organizations which are gaining huge profits and contributing to the world economies. Free trade also has so many barriers including the fact that the United States is not promoting the Value Added Taxes on the imports. Due to the opening of international organizations franchises in different countries, labor market jobs are shifted and created problems of unemployment. A study results revealed that when China achieved the title of most favored nation, it impacted negatively to the job markets of the US and it faced the loss of 3.2 million jobs and most of them was linked with manufacturing (Collins, 2015). The international organizations are facing the allegations of low tax payers, social injustice, and worst working environment in the different countries. Rate of human trafficking, diseases such as HIV/AIDS, rape, cyber crimes increased due to the spread of globalization. In 2016, the global trade volumes decreased and the economists started to suggest that globalization is reversing its impacts by decreasing the growth rates of global economy and the different powerful world economies should try to manage these impacts (Fox, 2016). The productivity, inflation rate, and crisis risks that are occurring are becoming threat to the global world markets. Trade is no doubt boosting up the economic growth but reducing the world productivity by the spread of global value chains. Inflation rates are impacting the prices of energy elements that are impacting negatively to the different world economies (Smialek, 2017). The economists are suggesting that powerful and developed nations should try to manage the impacts of globalization and improve it by implementing different set of policies which could be based on small trading patterns. It will improve the situations of the countries that are facing economic issues. The issue like trade deficit that needed attention and some policies that could improve its situation (Mayeda, 2016).
Globalization improved the trends of global markets and developed the international trade such as free trade, but it has a darker side as well in which it is negatively impacting the developing nations and creating issues like trade deficit, diseases, trafficking, kidnapping, rape, murders, cyber crime, poverty issues, labor issues, and unemployment problems. Globalization has different impacts on different nations and it can’t be stopped. But can be measured by applying appropriate techniques, strategies, and policies to reduce the level of its adverse impacts and to promote its positive impacts on the global world.
References
Collins, M. (2015). The Pros And Cons Of Globalization. Forbes.com. Retrieved 03 April 2018, from https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#4d44b6c4ccce
Cowen, T. (2016). Globalization Goes National. Bloomberg View. Retrieved 03 April 2018, from https://www.bloomberg.com/view/articles/2016-09-15/globalization-goes-national
Fox, J. (2016). What It Will Take to Stop Globalization. Bloomberg View. Retrieved 03 April 2018, from https://www.bloomberg.com/view/articles/2016-11-15/what-it-will-take-for-trump-to-stop-globalization
Mayeda, A. (2016). Lagarde Says Globalization Needs to Have a More Inclusive ‘Face’. Bloomberg.com. Retrieved 03 April 2018, from https://www.bloomberg.com/news/articles/2016-12-02/lagarde-says-globalization-needs-to-have-a-more-inclusive-face
Smialek, J. (2017). Productivity Could Be a Loser in Globalization Backlash. Bloomberg.com. Retrieved 03 April 2018, from https://www.bloomberg.com/news/articles/2017-02-28/love-it-or-hate-it-globalization-boosts-productivity
