Analyze the impact of globalization on world economy ?
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Globalisation is the process of rapid integration or interconnection between countries.It refers to increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres .
Positive impact on world economy:
a. Globalization has brought about increased inflow of foreign capital, it has widened the choice of consumers.
b. MNCs provide employment opportunities to the masses and local companies supplying raw material to these industries have also prospered.
c. It has brought about greater integration of economies. World seems like a big market , with availability of all brands everywhere.
d. It has enhanced growth rate of many developing economies.
Negative impact:
a. The entire policy of globalization has been questioned on the grounds as to what is global about globalization.
b. Instead of integrating the communities it has benefited a certain section of a society.
c. It has rather widened the gap between the rich and the poor.
d. Growth of MNC's,increased inflow of foreign goods have posed fierce competition to local industries.
e, Many small manufacturers, small scale industries had to shut down because of their inability to cope with foreign brands leading to unemployment.
f. Globalisation has given advantage to the private sector which operates for profit not for the welfare.
g. Globalisation has impacted agrarian economy. Government in an attempt to create SEZ's has acquired the land of poor farmers without reasonably compensating them.
h. Uncertain terms of employment. Casual workers are hired on contract when demand is high and laid off when demand declines.
i. It has created a class of people who indulge in lavish consumerism, luxury and extravagant lifestyle while the others who are reduced to abject poverty.
j. It has also worked to the advantage of developed countries who control international organisations and rules like WTO and create unfair trade norms for the poor developing countries
Positive impact on world economy:
a. Globalization has brought about increased inflow of foreign capital, it has widened the choice of consumers.
b. MNCs provide employment opportunities to the masses and local companies supplying raw material to these industries have also prospered.
c. It has brought about greater integration of economies. World seems like a big market , with availability of all brands everywhere.
d. It has enhanced growth rate of many developing economies.
Negative impact:
a. The entire policy of globalization has been questioned on the grounds as to what is global about globalization.
b. Instead of integrating the communities it has benefited a certain section of a society.
c. It has rather widened the gap between the rich and the poor.
d. Growth of MNC's,increased inflow of foreign goods have posed fierce competition to local industries.
e, Many small manufacturers, small scale industries had to shut down because of their inability to cope with foreign brands leading to unemployment.
f. Globalisation has given advantage to the private sector which operates for profit not for the welfare.
g. Globalisation has impacted agrarian economy. Government in an attempt to create SEZ's has acquired the land of poor farmers without reasonably compensating them.
h. Uncertain terms of employment. Casual workers are hired on contract when demand is high and laid off when demand declines.
i. It has created a class of people who indulge in lavish consumerism, luxury and extravagant lifestyle while the others who are reduced to abject poverty.
j. It has also worked to the advantage of developed countries who control international organisations and rules like WTO and create unfair trade norms for the poor developing countries
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3
Most economists agree that globalisation provides a net benefit to individual economies around the world, by making markets more efficient, increasing competition, limiting military conflicts, and spreading wealth more equally around the world. ... Some of the benefits of globalization include: Foreign Direct Investment.
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