Pros and Cons of Globalization

"Globalization refers to the growing interdependence of countries through the increasing variety and volume of cross-boarder transactions in goods and services and international capital flows and through the rapid and widespread diffusion of technology."


Advantage

• Due to the extended scale of market throughout the world, the companies get to have access products from different countries.
• There can be a flow of money in the LEDCs (Less Economically Developed Countries) as the companies get the labour forces and resources from the less developed countries. Therefore, globalization can support the economy of the people from LEDCs.
• Active communication among the countries take place, which can result in further collaboration and globalization. This active communication can also benefit the countries by maintaining stable political relationship with the other countries. 
• Throughout globalization, exchange and sharing of cultural value take place. Therefore, people under globalization get to experience variety of cultures in the world and know better about the world. 
• As the corporations with technology work in the countries/areas without any technology but with labour force and resource, those countries/areas get to obtain new technology from the corporations. This can contribute in promoting the development of the nations/areas as whole since they get to have technology to generate further profits from what they have (resource and labour). 

Disadvantage

• The people from MEDCs (More Economically Developed Countries) do not get to receive proper amount of income since their jobs can be replaced with the cheap labour forces that are mostly from LEDCs.
• There is a possibility of incursion of communicable diseases and social degeneration. 
• Due to the heavy investment from certain corporations, those corporations gain power that they can rule the world.
• Over extraction of resource in especially of LEDCs can happen since the companies with money tend to obtain their resources from the LEDCs. 
• Globalization can result in loss of cultural identity or culture especially of Eastern values. 
• Globalization makes the economy, especially, of LEDCs to be dependent on the economy of MEDCs. This is because MEDCs generate further profits out of the cheap resources and labors provided by LEDCs. Under this trend of globalization, the gap between the economy of LEDCs and that of MEDCs get widen as the time passes.