Globalization Advantages & Disadvantages - cloudfront.net

GLOBALIZATIONADVANTAGES & DISADVANTAGES

Hela GHRIB

Oula BAYARASSOU

4th Level – Marketing

2009-2010

UNIVERSITY of TUNIS Higher School of Economic and Commercial Sciences of Tunis.

OUTLINE

G loba liza tion has m uch im pact on our lives. It has changed the w ay w e look at th ings, the way w e think and the w ay w e behave.

It has both advan tages and flaw s: F irst w e’ll deal w ith its good aspects, then w e’ll m ove to its draw backs, and w e’ll end up our presentation w ith concluding rem arks.

INTRODUCTION :

G lobalization is not a new phenom enon. It began in the late n ineteenth century, but its spread slow ed dow n from the start of the F irst W orld W ar until the 1960’s w hen it started to develop again .

DEFINITION OF GLOBALIZATION

Globalization could be defined in different ways. We chose the following definitions:

Globalization is the process of making businesses, technologies, or philosophies spread throughout the world.

Globalization is the name for the process of increasing t h e connectivity a n d interdependence of the world's markets and businesses.

PART I : ADVANTAGES OF GLOBALIZATION There are numerous advantages that globalization is bringing to the world

economy.

The development of global finance system is a big advantage of globalization as all the international transactions are done smoothly through international agencies.

One of the greatest benefits is the increase in the international flow of money.

As an entrepreneur, a person can invest in the market of his choice and can bring better value for its customers and the shareholders of his company.

Furthermore, free trade between countries increases.

For example, the free-trade agreement between Tunisia and the European Union.

A n o t h e r g o o d s i d e i s the creation of organizations l ike WTO. (world trade organization)

Such an organization plays a big role in bringing regulation to the world economy; it serves as an authority to make nations follow some rules to protect the interest of global economy.

Thanks to satellite technology and Internet, people are able to com m unicate a n d share inform ation m ore easily. People can travel in shorter tim e; th is w orld appears sm aller than before. In fact, it has becom e a global village and cultural barriers have been reduced .

T h i s global village dream has becom e m ore realistic. C ultural exchange is one of the m ost im portant reasons that people are in favor of g lobalization . T hanks to travelling, tourism flourishes and creates contact betw een various people, w ho can learn a lot of new th ings.

PART II : DISADVANTAGES OF GLOBALIZATION

o The m ost im portant d isadvantage of globalization is unem ploym ent. In spite of the fact that production increased in highly industrial countries, the num ber of u n em p loyed p eop le in crea sed beca u se m achines replaced m en.

o M o r e o v e r , m ultinationals, w hich have opted for delocalization to benefit from the developing countries, offer low w ages to w orkers w ho are exploited in spite of their hard w ork . They have no rights and they can not im prove their bad living conditions. C hina is a good exam ple to illustrate th is.

oA n o t h e r s i g n i f i c a n t e f f e c t o f g l o b a l i z a t i o n i s t h e d i f f i c u l t y o f com petition. W ith globalization , trade betw een the countries has becom e free. T h is s itu a tio n h a s le d to c o n sta n t c o m p e t i t i o n b e t w e e n n a t i o n a l a n d international com petitors.

o G l o b a l i z a t i o n c a u s e s s o m e environm ent problem s. B ig firm s are responsible for deforestation . W e can m ention the exam ple of D ove, a fam ous French brand, w hich causes d eforesta tion in In d on esia ; b y over cutting palm trees in order to use palm oil to produce its cosm etics.

o A n o t h e r d r a w b a c k i s t h a t international organizations, like the World Trade Organization, restrict national and individual sovereignty.

o A n o t h e r m a j o r d a m a g e o f globalization is that som e cultures are disappearing. T h e c u l t u r e s o f t h e cou n tries th a t h a ve m ore econ om ic p o w e r d o m i n a t e o t h e r s ; w e a l t h y countries products affect cultures, for e x a m p l e , c l o t h e s , m o v i e s a n d t e c h n o l o g i c a l p r o d u c t s a r e f o u n d everyw here.

In fact, standardization is the biggest enemy of culture heritage; it kills diversity and variation, hence may kill people’s identities by making them eat the same types of food or listen to the same types of music…

CONCLUSION

E ven though globalization has m any draw backs, nobody can deny the fact that it has changed the history of m ankind. It has m ade com m unication faster and easier and people closer. B ut still, d e v e lo p in g c o u n tr ie s d o n o t b e n e f i t f r o m globalization as m uch as pow erful countries

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