Question

Decide whether each item is a benifit or disadvantage of economic globalization

Answer 1

Globalization has both benefits and disadvantages. It can lead to accelerated development, international awareness and empowerment, and increased wealth. However, critics are concerned about the influence of international corporations and the potential negative impacts on local populations and economies.

Step-by-step explanation:

Globalization has both benefits and disadvantages. Some benefits include the accelerated progress of development, international awareness and empowerment, and the potential for increased wealth. However, critics of globalization are concerned about the growing influence of international corporations and the potential for these corporations to control governments and act in their own interest rather than the interest of the local population.

One way that globalization has helped individuals economically is by providing access to a greater variety of quality products at attractive prices. This benefits consumers who can now shop all over the world. Another benefit is the potential for increased wages and productivity due to the benefits of specialization and comparative advantage in international trade.

On the other hand, globalization can also have negative economic impacts. It can lead to job losses in certain industries as production is often outsourced to countries with lower labor costs. Additionally, the concentration of wealth and power in the hands of a few international corporations can negatively impact local businesses and economies.

Answer 2

Economic Globalization proved benefit in the following ways -

1. Globalization of markets - To link national economy with international economy is the first manifestation of Globalization. In common worlds , Globalization is associated with the Globalization of markets , meaningly to convert the world market into a common marketand to achieve this purpose, the limitations on import and export were relaxed.
2. Foreign Capital Investment - As a result of Globalization there has been tremendous increase in the Foreign capital investment. The developing countries have opened their doors for foreign capital investment as a result of which the developed countries of the world are earning lots of profit by investing capital in developers countries.
3. Advent of Foreign Technique - Before the start of the process of globalisation, there was lack of developed technology with the developing countries because of which they were unable to compete with developed countries of the world. But with the start of the process of globalisation there has been open exchange of foreign developed techniques.
4. Rapid economic Development - The process of globalisation has led to fasten the speed of economic development and the examples of the countries like - India , china , singapore , Malaysia, korea, Russia etc were before you. After end of the cold war , the rate of growth of these countries was about 4% but today it has gone upto 9% to 10% and their economy became very strong.
5. Dominant role of International Economic Institutions- World trade organizations, IMF , WB , UNCTAD etc are various international institutions.
6. Competition in market - As a result of globalisation the competition has started in the international market.
7. Increase in foreign capital - After the start of the globalisation, they have collected foreign exchange by selling their loss making public sector undertakings.