benefits of globalization
Benefits of Globalization
We don't think twice while using terms like liberalization, free trade, globalization, etc. quite liberally to picture a world with fewer restrictions and boundaries. Is globalization really an answer to the world economy problems? Read this article to find out.
- Backed by sound economic policies and information technological advancements, the South-East Asian countries have prospered as their employment growth rate has increased tremendously. One fine example of this phenomenon is India which continues to have an economic growth rate of 8 percent or more per year.
- Easy access to foreign capital and increased foreign direct investment lays down the foundation for a competitive and yet, thriving market.
- Since the players increase in the market, the consumers not only get better products, but also at a cheaper price. Hence, another benefit is low inflation rate which helps the country to have a stabilized economy.
- Poverty has reduced in the Asian countries which have adopted liberalized economic policies.
- Companies from other countries bring their products with their technologies. Newer technologies in IT, production and research cut down the production cost, and increase sales. Moreover, they also sharpen the skills of the local labor force.
- Africa is a huge continent with many countries which are downtrodden and poor mostly sustaining life on agriculture and aquaculture. Not only that, there are regions which are torn apart by war and violence, and hence steady income from a stable employment would work as a respite from the in-fighting.
- Education plays a major role in the development of any nation and is one of the important drawbacks in the growth of the African region. UNESCO believed that 48% of children in Africa were never ever enrolled in primary schools in the year 2000. This disappointing number can go down if African countries open their doors to free market policies. With significant players in the market, a major positive impact would be on the education and technological field of the African continent.
- More resources and FDI would be at hand because of globalization and ensure lower exchange rate of local currency. Hence, it will indirectly help boom the economy.
- Though, globalization is not a magic wand and cannot wipe away all of Africa's woes, but it can surely create a favorable environment for a fair and stable government. Globalization would bring any African country more closer to rest of the world and any wrongdoing on the part of a government or a faction can be monitored and curtailed.
- Trade treaties and co-dependence in business is fostered by globalization. It can bring about a vast change in the political, economical, and social set ups in Africa.
- With more money, resources and people coming to Africa, the real and the most devastating problems of these countries could grab the limelight, and relief intervention can be provided by the global community.
- Outsourcing is both one of the pros and cons of globalization. On one hand, it gives opportunity to the corporates to mete out work to its offshore branches or partners and thus, get the work done at a lesser cost. And on other hand, it raises serious concern among local people for the lack of job opportunities in their own native land.
- Utilization of capital with the cropping up of new markets and new opportunities is definitely the most vital impact of globalization on the richer countries. This in turn would generate more wealth and prosperity.
- Issues related to ethnic conflicts and diversity could be resolved as a result of inter-continental travel and immigration. And hence, opens the avenue of the cultural benefits.
- The MNCs are the real winners in the process of "going global". They not only get new consumers, more profits, more assets and employees, but also are able to carve out a global image for themselves. Soft drinks giants like Pepsi or Coca Cola are exemplars in this regard, as they have reached to the farthest of locations from the scorching deserts of Africa to the remote villages of Asia.