Even though globalization affects the world’s economies in a positive way, its negative side should not be forgotten. Discuss.
The word “economic globalization” is more and more used in our days, and it refer to easing international trade by reducing or removing any barriers such as taxes of trade or import/export fees. This have brought the access to new markets for many countries, and in consequence a strong economic growth. Although, globalization have an important role in economic development, it seems like there is a strong downside of this matter, and this cannot be overlooked.
Firstly, everybody talk about the great advantages of exporting and importing products at a cheaper price, and how important is this in developing the standard of life. On a first look they are right, because now everybody has access to a wide range of merchandises (for example buying a car in a country with no car industries). However, this is only a half of the true, because in most of the cases, local weak markets are overcome by imported goods, and this can seriously damage or even destroy local economies.
Secondly, all economies of the participants to globalization are strongly linked between them. Certainly this have quite benefits, such as a strong currency, or the guarantee of a reliable place for investors. On the other hand, those advantages could rapidly turn against them, because one problem could affect the others in a “domino effects”. For example the problems of the economy of Greece, who is member of EU, is shaking all member’s economy by putting Euro currency in a great risk.
In the end I believe everybody is taking advantages of the globalization, therefore we should assume the responsibilities of using those advantages by assuming the negative side of it.
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