StudyKraken Economics
Print Сite this

Advantages and Disadvantages of Globalization


Events that have been taking place in the world recently attract more and more attention from the international community. Living in the modern world, a person can not stay outside the things that happen in other countries because nowadays all things and processes are interconnected. Events that take place, for example, in Asia, can be caused by some other events that have happened in Europe, and at the same time, can be reasons for some other kind of events in South or North America.

All this is happening this way because of the process of globalization that can be observed throughout the world. People express different points of view concerning the issue of globalization and a single point is not formed yet. Some people keep to the point that globalization is a negative phenomenon in the development of the world because it brings profit only to the highly-developed countries and the developing countries become even poorer as a result of globalization.

Other people stick to the point that globalization is, vice versa, a positive process that influences greatly the convergence of nations in the modern world and helps to develop cooperation between different nations in all aspects of international life. Taking into account both these points, in this essay we are going to examine the actual effect of globalization upon the life of the modern world and make an attempt to see if the developing countries benefit from globalization and if it really supports the convergence of different nations.

Main body

To begin with, let us consider the possible negative effects of globalization. First of all, they are connected with the sphere of trade. Globalization makes it much easier for the majority of countries to carry out trade abroad. The countries that take part in the International Monetary Fund and World Trade Organization get the opportunities to launch their markets and enterprises in different countries, and very often those countries can not resist the flow of production from abroad thus destroying their domestic economies.

In spite of the fact that each country has its own buying habits and traditions, huge firms from the United States of America, Great Britain, or other highly developed countries get adjusted to those habits and win the major part of the market in the poor countries. Thus, they not only destroy the national identities of the nations but also increase rates of inflation and unemployment in those countries.

As globalization opens foreign markets for foreign enterprises, it is not surprising that they try to use the cheaper labor force from these countries as preferable to the expensive labor force that they can find in their own countries. Thus, domestic workers from highly developed countries are left without a job because foreign workers are skilled at the same level but their wage demands are much lower. Various economic crises were caused by the process of globalization, like for example, the Asian financial crises during the middle of 1990s when Thailand, the Philippines, South Korea, Japan, and other Asian countries faced economic recessions, falling off their currency rates and great levels of unemployment.

Of course, in those countries where people do not have jobs due to the foreign labor force, there are lots of demonstrations and protests against globalization. In the developing countries, there are also anti-globalization protests, as globalization increases the gap between the rich and the poor in those countries, as well as the gap between whole countries.

On the other hand, globalization is often viewed as a positive process, firstly due to its role in the development of international trade and international corporations. They are said to contribute positively to the convergence of nations around the world. The same role is attributed to the virtual economy that makes the process of economic relations between countries easier due to the use of modern technology and telecommunications.

The great role of teenage culture and sports in the convergence of the nations of the world also can not b denied. These two phenomena, teenage culture, and sports are viewed as the results of globalization and are considered to be positive. Teenagers irrespective of the nation they belong to are interested in a culture based on different musical genres, like rock, hip-hop, pop music, and this fact helps them to overcome conflicts that could occur if they did not have common interests.

Sports are a great power in the modern world due to their unifying force. For example, when a sports competition takes place nations forget about their principles and try to win in the competition using only earnest sport rules and principles. The development and activity of such organizations as the European Union and World Trade Organization have a positive effect upon the convergence of nations.

We can say the same concerning the role of languages, especially English, in the process of globalization and, respectively, international convergence. People, who know English can get more paying jobs, receive higher status in society. Women who speak English can be less discriminated against to their usefulness as workers with the knowledge of the international situation. But recently, local languages have become more and more popular due to the role of advertising, business, and pop culture. This fact shows that globalization is not so negative, but it also can not be called absolutely positive.


In this essay, we tried to find out to what extent globalization brings convergence and divergence in the world. We learned that globalization has its positive and negative sides. On the one hand, it increases the gap between rich and poor people and causes inflation and unemployment. On the other, it provides help in convergence of nations through sport, culture, and trade.

Cite this paper
Select style


StudyKraken. (2021, November 9). Advantages and Disadvantages of Globalization. Retrieved from


StudyKraken. (2021, November 9). Advantages and Disadvantages of Globalization.

Work Cited

"Advantages and Disadvantages of Globalization." StudyKraken, 9 Nov. 2021,

1. StudyKraken. "Advantages and Disadvantages of Globalization." November 9, 2021.


StudyKraken. "Advantages and Disadvantages of Globalization." November 9, 2021.


StudyKraken. 2021. "Advantages and Disadvantages of Globalization." November 9, 2021.


StudyKraken. (2021) 'Advantages and Disadvantages of Globalization'. 9 November.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyKraken, request the removal.