Globalization

Globalization

Globalization has two sides. On the one hand it creates winner and on the other hand it creates losers. While the opponents of globalization assume that global inequality will rise between poor and rich and only make the rich even richer, advocates believe that the globalization is a natural process with an opportunity, especially for poor countries. Those countries where global trade and capital flows passed could develop their economy like the developed countries did. For these countries, access to the world marked would offer better opportunities.

Countries get the opportunities to present their own products in large market leading to a development of economy which can’t be denied by globalization opponents. Increased economic situation can also benefit to the society, so property can be increased due to Globalization. With the aid of the targeted communication exchange relations and contacts in the whole word can be made. The range of goods hast steadily increased due to international trade. For example, exotic fruits, coffee and tea take part of everyday life for many and are an indispensable part of our life. The exchange of economic, politic, cultural and scientific benefits is possible, so an exchange of knowledge can be profitable for all participants. Like already mentioned diversity in the range of goods is just as beneficial as the falling prices that can be caused by production in other countries. Food is available in very cost- effective way and despite of different seasons it can be used without restrictions. Globalization has also brought many positive changes in politics. Leading nations take joint decisions and political disputes can be resolved faster.

When there is a winner, there is always also a loser. Globalization critics point out that wages in industrialized countries are being pushed down by the process. More and more companies rely on offers from low -wage countries in the production, there by the revenue rate is increasing. High unemployment rates in developed countries are often justified by increasing globalization. The small companies in poor countries are the clear losers, as they have little chances of survival due to the competition with global companies. The competition is so pronounced that small companies in poor countries have little chances to survive. In an intact marked there is fair competition.  However, the globalization doesn’t allow compensation for labor and capital. Not to be ignored is the negative impact on the environment. Due to globalization, masses of goods have to be push around the globe. In addition to that companies are increasingly relocated from Europe to third countries because of too high environmental regulation.  In sum I think we should make the globalization more sustainable and balanced to reduce the gap between winners and losers but that requires global rules which have to be made and over watched by local, national and transnational institution.