Economic Globalization Pros and Cons List
Economic globalization has made it possible for industries to sell their products and services anywhere in the world and as a result there is now cheaper alternatives available and competition to locally produced goods. Below are the pros and cons of economic globalization.
List of Pros of Economic Globalization
1. Offers Free Trade Opportunities
Economic globalization provides free-trading opportunities which give everyone an equal chance in the global market and make it possible for various countries to do business in other foreign markets. For instance, South Asia is now sending its clothes to united states allowing the people there to get cheaper clothes.
2. Breaks Down Business Barriers And Restrictions
Since it allows free trading, it means that it is now easy to conduct business anywhere hence less restrictions. Jobs as well are now being moved to other countries with market and labor which in turn saves these companies a lot of money, effort and time which would have been spent on the legalities between the two countries involved.
3. Allows Movement Of Labor
Labor has become more fluid due to economic globalization. Many people initially found it hard to move to other countries in search of jobs due to restrictions. However, with economic globalization, people are now free to move in search of work and better lifestyles. People are no longer limited to their local economies.
List of Cons of Economic Globalization
1. Serves As A Tax Refuge
Even though economic globalizations allows for people and companies to have access to global markets, it is not very effective when it comes to regulating business in individual countries. And as a result, some countries, companies, or people might not play fair since they want to make more profits for themselves, they might use tax to attract foreign market. These havens also shelter businesses that are looking to save more money by avoiding taxes in their home country.
2. It Harms Developing Countries
Because of economic globalization, a developing country might not have access to its natural resources as a great percentage of these resources would rather be give to private individuals and foreign business due to corruption. In worst case scenario, this might inhibit the country’s development and rather take it backwards.
3. Encourages Brain Drain
Brain drain is when great minds and local talents search for better lives outside their birth country. Rather than helping the country grow, they will be working and improving another country because it offers them more.