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Effects of Globalization Argument

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Globalization refers to the changes experienced by companies in the global economy. These changes mostly arise from the increased international relations characterized by increasing international trade and exchanges taking place globally (Cauter 33).

Normally, globalization portrays a strong and versified trade and investments between nations resulting from decreasing barriers and as well interdependence of many states. Over the last decade, globalization has continuously increased in its magnitude and is developing a different scope characterized by unique social systems. These social systems often attribute to the increasing interdependence of states and sharing of the individual aspects affecting citizens from these states. In most scenarios, globalization is used on an economic aspect where it generalizes changes such as liberalization of global markets, introduction of free markets and as well establishment of common markets shared by several states (Rodrik 20). These steps, normally undertaken by individual governments have strong positive impacts on the overall enhancement of information sharing in various fields.

While in the quest for globalization, it is always important to have specified attitude on the contributing aspects. Among many researchers, attainment of globalization is through development of a direct link between multi-national states on economic plans.

Additionally, communication and information sharing as well contributes to the diversified approach of globalization. Global competition, geared by the quest of attainment and exploitation of raw materials and labor globally, is taking a different path (Asmussen 50). Nowadays, despite the strong link with the economic perspective of these relationships, nations are as well competing aiming at ruling terrorists. Globalization is significantly presenting various effects to the interdependent nations (Cauter 64). These both positive and negative effects are strongly influencing the aspect and overall perception of globalization. Among many people in the modern society, globalization is a vice. However, other people strongly perceive that globalization is a uniting channel that promotes and encourages global economic success. The paper develops a comprehensive argument on globalization.

The conclusion developed is solely centered on the effects of globalization.

Many people often perceive globalization on a positive perspective only. However, there lies some aspects and drawbacks presented by globalization (Hasselblatt 36). This section will focus on the drawbacks of globalization. Despite the improved performance of organizations, globalization as well make some companies experience great failures as they strive to get global. A good example of a real life experience is the case of British fast food restaurant that was performing preferably good prior to it going global. Once the company went global, its performance started declining and the company could not maintain the set standards. For this reason, some of the outlets in U.S.A were closed. Overall, the company was severely affected and it was decided that the company had the obligation of concentrating on the quality of the fast foods. Normally, when a company goes global, political, economic, technological and as well social factors influence the performance of the organization.

On the other hand, as organizations go global, they are as well prone to facing financial challenges. A precise example lies on the economic recession that hit the world in 2008-09 where none of the nations stayed safe from the recession. Apparently, during this period, everyone faced massive business losses that significantly led to the stoppage of the foreign direct investment from industrialists and business personnel. Through the termination of the direct funding investment, the global flow of income reduced.

Apparently, it led to the shrinking of investments to nations that were performing preferably better than the rest. The move by investors solely aimed at reducing the losses encountered during the recession period.

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Despite the competition, arising from globalization viewed as a gearing factor towards an increased quality of products and services offered to the local citizens, it might as well have strong negative effects to local industries and investors (Hasselblatt 56).

Normally, due to the differing levels of capital investments and technology advancements, the costs of production differ between states. While focusing on a more advanced nation, it is possible to have high quality products with a slightly lower production costs.

Henceforth, while pricing these products, they are relatively lower than the locally produced products. Seemingly, consumers make a preference of the imported products over the locally produced products (Asmussen 24). The local products remain flooded in the market due to their high prices. As a result, domestic producers and manufactures face influences from the foreign companies thus leading to a declined production and thus may as well escaping from the market due to the high pricing strategies adopted.

On the other hand, increased financial globalization has a significant negative impact to the global economy as it leads to an increased level of income inequality in many nations. Income inequality in nations may arise due wage changes, which may arise from change in employment patterns that as well influences the level of wages paid to employees. Differing wage schemes leads to an inequality in disposable incomes available to local citizen. In addition, domestic consumption of goods and prices of the goods as well may contribute to inequality levels in different states. Normally, the level of domestic consumption influences the level of imports from other nations (Cauter 75). Similarly, price levels of commodities will significantly affect the nature of imports to a country. In a state, strongly characterized by high prices of commodities, local citizens spend more of their incomes for these products. It is in contrast with the exporting nation as it makes more incomes by selling these products at relatively higher prices thus making massive incomes (Rodrik 77). Lastly, domestic production as well propels the level of inequality. Nations that mostly rely on imports for meeting the citizens’ demands are often at risks of experiencing significant inequality with respect to other global nations. Henceforth, the volume of domestic production in a nation may have strong and massive contributions to the aggravated wealth inequalities between states.

Over the last decade, globalization has remained as the most debated subject. Among many people, they consider the aspect the best thing that has ever happened in the world (Yeung 27). Despite the strong negative effects demonstrated earlier, globalization as well presents numerous advantages as it has played a significant role in changing the lives of many people in the world. The analysis below aims at developing the positive aspects of globalization.

Globalization has strongly aided in increasing employment opportunities for people from different regions (Guscina 25). Through globalization, companies are continuously foraying into developing nations. Henceforth, it is increasing the employment opportunities in these regions aiding in controlling the levels of unemployment. In most developing nations, there is lack of capital, which in turn limits investors and the growth of the domestic companies thus limiting the overall growth of employment opportunities. In such scenarios, due to globalization, investors from developed nations gain opportunities of investing in these developing nations and thus fueling the rate of available jobs (Yeung 19).

On the other hand, based on the sole objective of globalization, through the globalized markets, foreign trade is promoted. Foreign trade does not only have a positive impact on the domestic economy but also fuels the development of more efficient global markets. On an economic perspective, every nation should be striving for efficient economies. Essentially, the sole sign of efficient market is evident through the equilibrium between the buyers’ willingness of goods and their abilities of paying for these goods or services. Improving the production process of goods and services can easily propels the aspect of efficient markets. Attainment of improved production of goods can be through outsourcing some production processes or some ready products supplied at lower discounts (Guscina 56). While selling these products in the domestic market, it is possible to lower the selling prices and thus increasing the overall demand and customer’s affordability of the products. These aspects of globalization have a strong positive impact to the overall attainment of efficient global markets and as well promoting a stabilized global market.

With the increased outside investors to a country and as well importing of products from other nations, competition propels. As a result, due to these multiple producers and suppliers, the likelihood of increased quality of goods and services in the domestic market. Mostly, when enterprises begin venturing across the international borders, a new standard is introduced in the global marketplace. Similarly, consumers will have a variety of choices to make thus enhancing their need satisfaction. On the other hand, while competing companies are continuously fighting for a market share, they constantly focus on improving their quality of goods and services thus enhancing the value of products presented to their clients.

Lastly, globalization is important in the modern society as it propels communication and sharing of information. As people from different nations are interacting, it is possible to share ideas and thoughts continuously. These ideas are important in the modern society as they are promoting the spread of technology into many areas. Similarly, it enhances a stabilized security as nations openly share security intelligence in the quest of maintaining strong positive relationships. Despite the prevailing violence on an international scope, globalization, on the other hand, has aided in halting many conflicts that would have led to such violence.


In conclusion, as developed in the argument above it is precisely clear that globalization has both strong and negative affects to the global economy. Despite its role in promoting cohesion between nations, it as well significantly has some drawbacks attributed to the differences between the individual nations. The argument concludes with an argument that globalization contributes to massive drawbacks in comparison with its advantages. On a different scope, globalization can be perceived to have had strong positive impacts globally to nations until the international recession hit the world and everyone including the big industrialists and businesspersons suffered greatly from big financial losses. Due to financial losses, many businesspersons had to wind up their business and limit it to operate only in home country or countries where they were comparatively doing well. Therefore, it may be safe to state that globalization has greatly affected the business of many businesspersons and industrialist during the international recession.



Basic overview of globalization, presenting the different aspects and attitudes in many people. This section presents the thesis statement of the argumentative essay revealing the possible effects of globalization.

Negative effects of globalization

This section provides the negative aspects of globalization. The main focus being on the drawbacks presented by the liberalization of global markets.

i. Possible likelihood of global companies experiencing great failures and massive losses
ii. Facing financial challenges such as the economic recession in 2008-09
iii. Discourages local investors and domestic industries
iv. leads to an increased level of income inequality in many nations


Globalization not only does it present the highlighted negative effects, it as well tables some strong positive aspects that gears its existence in the global market.

Positive effects of globalization

i. Contributed to increased employment opportunities for people from different regions
ii. It promotes foreign trade
iii. Propels competition thus fueling improved qualities


In this section, the paper develops a comprehensive ending of the discussion highlighting on the findings based on the tabled arguments.

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