1 Positive And Negative Effects Of Globalisation

Front 1

Introduction of Globalisation

Back 1

In simple terms, Globalization means removing the cross- border trade barriers and integrating nations across the globe. Globalization refers to growing interdependence of countries resulting from the increasing integration of trade, finance, people, and ideas in one global marketplace.

Front 2

Positive -

Global Market

Back 2

With the emergence of globalization, there has been growth of global markets. Number of international transactions has increased with the formation of global markets. There has been living of economic activities and removal of cross-border trade barriers because of globalisation.

Front 3

International Institutions

Back 3

There has been increase in the international institutions with the help of globalization. Institutions like UNO, IME, WTO and World Bank are regulating the relationship between different countries and governing the issues of justice, human relations and political factors.

Front 4

Increase in world trade

Back 4

Before the phase of Globalization, United States of America was dominant in world export. After the advent of globalization, other nations also have increased their world trade transactions drastically.

Front 5

Increase in Foreign Direct investment

Back 5

Globalization leads to increase in foreign capital flow in a country. There has been increase in Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). Nations that have major economic expansion attract FDI. FDI leads to economic growth and development in developing nations.

Front 6

Increase in Employment opportunities

Back 6

Globalization leads to increase in flow of capital and investment to developing economies. This leads to increase in the job opportunities for local people.

Front 7

Negative -

Environmental effects

Back 7

Though globalization contributes to economic growth and development, it also adversely impacts natural environment. With the increase in trade and transportation, there has been destruction of Ozone layer and many species on the earth.

Front 8

Loss of Jobs -

Back 8

In the short-run, globalization may bring in new job opportunities in developing countries, but in the long-run, only labour jobs will be left for such nations. All the white collar jobs may get shifted to developed nations. Also, technological advancement has reduced the manual work which also leads to increase in unemployment.

Front 9

Western culture

Back 9

Globalization is leading to spread of western culture in developing economies. The influence of western culture is increasing on the locals.

Front 10

Inequality

Back 10

Globalization has resulted in increasing inequality of wealth between nations. Some of the nations are becoming more developed with the advent of globalization. Also, there has been increasing gap between rich and poor in the same country.

Front 11

Inflation

Back 11

Globalization leads to increase in the demand of basic commodities across the global. This leads to step increase in the prices of commodities.

Front 12

Dominance of Power

Back 12

Globalization can also lead to shifting of economic power to select economies. The powerful developed nations of the world will influence the developing economies.