Impact and Challenges of Globalization

Impact and Challenges of Globalization

Positive Impact

• A better economy introduces rapid development of the capital market.

• Standard of living has increased.

• Globalization rapidly increase better trade so that more people are employed.

• Introduced new technologies and new scientific research patterns.

• Globalization increasing the GDP of a country.

• It helps to increase in free flow of goods and also to increase Foreign Direct Investment.

Negative Impact

• Too much flow of capital amongst countries, introduces unfair and immoral distributors of Income.

• Another fear is losing national integrity. Because of too much exchange of trade, independent domestic policies are lost.

• Rapid growth of the economy has required a major infrastructure and resource extraction. This increases negative ecological and Social costs.

• Rapidly increases in exploitation of natural resources to earn foreign exchange.

• Environmental standards and regulations have been relaxed.

Challenges of Globalization

• The benefits of globalization extend to all countries that will not happen automatically.

• The fear that globalization leads to instability in the developing world.

• The industrial world that increased global competition will lead in race to the bottom in wages, labour right, and employment practice.

• It leads to global inbalance.

• Globalization has led to an increase in activities such as child labor and slavery.

• People started consuming more junk food. This caused, the degradation of health and spread of diseases.

• Globalization has led to environmental degradation.