“Nowadays globalization is still causing a strong impact in the world and many different aspects, including economy”
Globalization is the connection between different parts of the world, and in the economic aspect, globalization is the process in which companies or businesses expand internationally. This global phenomenon is not new, and in recent years it has notably grown.
In my opinion, the main causes are communication, technology, and transportation. The advances in technology make communication unchallenging, permitting rapid financial transactions and the growth of multinational companies. The improved transportation allows people to travel and buy online, for example, on Amazon.
Nevertheless, globalization has its own positive and negative effects. Starting with the positive ones, we can point out the fact that companies can buy raw materials where it is inexpensive and take advantage of low labor costs in developing countries. In addition, the different parts of a product can be manufactured in different parts of the world, each part in the country where it is less expensive. For example, a telephone. Another advantage is the rise of job opportunities and in the living standard in developing countries due to the relocations of service companies. The USA relocated an automobile company to Mexico because of the low labor costs, and this gave hundreds of jobs to people that needed them.
But not only companies are benefited, but customers are as well. Owing to the low manufacturing costs, goods are cheaper and more accessible.
The negative effects that can be mentioned are the lower-cost markets for jobs, where workers have to defend themselves against the threat of companies that want less expensive labor markets “lower pay or losing the job.” In developing countries, there are no jobs which causes poverty, unemployment, and child labor. Not to mention the fact that less-developed countries like Ethiopia, are exploited by the developed countries.
To sum up, globalization is here to stay. Even though it has negative and positive effects, globalization can contribute to the economic stability of many developing countries but this economic globalization has to be improved to benefit each country equally.
By Manuela Orozco, Step 10
