Globalization can be defined as a method whereby an increased portion of economic or other activity is carried out across national borders or in other words it is the process where the economies of various countries in the world become more and more connected to one another. Here are some of the advantages and disadvantages of globalization –
Advantages of Globalization
1. It leads to increased free trade between nations and hence Goods and services produced in one part of the world are increasingly available in all parts of the world.
2. Companies have greater flexibility to operate across borders and hence they can make profits through domestic as well as international operations and also they can have access to cheaper capital from other countries if rate of interest is low and also cheaper labor and hence it ultimately increases the margin for the company.
3. It also leads to greater employment opportunities for the people and also consumers get quality goods at competitive rates.
Disadvantages of Globalization
1. It can lead to increased likelihood of economic disruptions of one nation affecting all nations and hence unsettling the whole world leading to chaos across the world.
2. Smaller domestic firms may lack the resources to compete with big international companies and therefore may be forced out of business.
3. Since globalization involves traveling of people as well as goods from one country to another It can lead spread of some of the deadliest infectious diseases known to humans.
Apart from the above advantages and disadvantages of globalization there can be many more added to the above list and it depends on the individual or company on how it sees globalization as a benefit or as threat.