Essay on The Pros and Cons of Globalization

900 Words4 Pages
Globalization can be defined as the system of interaction among the countries of the world in order to develop the global economy. It also refers to the integration of economics and societies all over the world ( Globalization can be both advantageous and detrimental to developing countries. Some of its advantages are increased external finance, improved technology and political conformism. Disadvantages of globalization include death of small and medium businesses, loss of cultural identity and the effect of foreign policies on domestic economic development. Let us take a closer look at these consequences of globalization. Increased external finance: Globalization…show more content…
They were also the first business to introduce 3G services in Nigeria. Now, Nigerians can communicate and network with people all over the world. Political conformism: With the increasing influence of foreign companies on developing countries’ economies, governments of developing nations need to carefully consider the effect of their policies on foreign investors. As is well known, most developing countries practice different forms of autocratic or pseudo democratic forms of government that lord it over their populace (Mostert, 2003). Now, governments of these countries need to consider economic policies, tax forms and human rights decrees that will encourage foreign investors to come help develop their nation. This has helped alleviate lots of oppression that citizens of developing countries experience (Balakrishnan, 2004). Now, we examine a few disadvantages of globalization on developing nations. Death of small and medium businesses: The influx of global organizations into developing countries often results in stiff competition for local business (often small and medium scale businesses). Global organizations are armed with huge capital, advertisement strategies, sometimes higher quality and better product prices. This leaves smaller local businesses scrambling for crumbs of the market share and as a result, these SMEs crumble leaving scores of people jobless. For example in Nigeria, prior to the entry of foreign textile and
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