Advantages and Disadvantages of Globalization
Advantages of Globalization
(a) Increase
in foreign collaboration: Globalisation increases foreign collaboration
through various modes such as joint venture, merger, franchise, turn-key
projects, etc.
(b) Expansion
of market: The size and
operation of business moves from local to national and from national to
international.
(c) Technological
development: Technological advancement paves way for a company
to enter foreign market. Globalisation of technology is done by Royalty or
purchase of technology or by technology collaborations.
(d) Reduction
in brain drain: Brain drain
is a situation in which a country loses its most educated and talented workers
to other countries through migration. Globalisation paves way for employment
opportunities in the home country and utilise the man-power efficiently.
Disadvantages of Globalization
(a) Loss
of domestic industries: Globalisation causes decline in the demand of
domestic products which in turn vanishes the domestic business.
(b) Increase
in inequalities: Globalisation
widens the gap between rich and poor. Also developed countries exploit the
resources of developing countries.
(c) Dominance
of foreign institutions: Economic power shifts from independent industries
to international organisations which is a threat to national sovereignty.
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