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.