Globalization is a process of international integration that happened due to the change of world perspective such as ideas and cultures in the world. Especially in the advancement of the technology, infrastructure, transportation, and telecommunication. Globalization has changed the way of life for every human, nowadays there are so many technologies that makes everything more easier. For example there are many social media that easily connect people from far places and the advancement in industrial technologies has caused many industries to work more quickly. As a result there are some negative and positive effects of the globalization for the economy.
There are some negatives effects of the globalization ; First, as the technology advanced more and more quickly and more up-to-date, companies and industries used these technology to exploit limited resources so quickly that it could lead into a scarcity for a certain resources. For example, China is the biggest consumer of coal in the world because they uses coal as their energy source. Second, globalization increases world carbon dioxide emissions that could polluting the air and caused sickness for the people and the workers for a certain industries. Third, globalization acts to increases world oil prices as a result of many technologies that uses oil for the energy source, as oil gets more and more expensive, the demands of oil will actually rise and if it is can’t be fulfilled there will be consequences like the bankruptcy of the lower companies that can’t afford to buy oil for their transportation work. Fourth, globalization ties countries together and if one country collapses, another country will likely to collapse too like domino effect. For example, if a country always receive resources from another country and that another country is collapsing, the other country will likely collapse too because theycan’t receive the resources anymore.
But as we know there are some positive effects too about globalization ; First, increased standard of living, economic globalization grants the governments of developing country the acces to foreign lending, when these funds used for the development of the infrastructure including roads, healthcare, education, and other services, the standard living of the countries increases but if it is used selectively, however not all the citizens will participate in the benefits. Second, access to new markets, globalization leads into freer trade between countries, this is one of its largest benefits to developing nations. Homegrown industries see trade barriers fall and have access to a much wider international market and allows companies to develop new technologies and products. Third, increased competition, with the increased competition many companies and industries will compete to make new strategies in their selling that often leads into lower prices.
Source : http://oilprice.com/Finance/the-Economy/12-Negative-Aspects-of-Globalization.html
http://www.kstatecollegian.com/2013/05/07/4-positive-impacts-of-globalization-on-world-economy/
by : Dimas Kusumawardhana
economywise 