Benefits and Problems Associated with Globalization Globalization brings both benefits and problems to different groups of both the developing and developed world. One benefit of globalization is the evidence of consumer prices being reduced worldwide. This has a positive effect on the finance of people especially in developing countries, as more people are able to afford to buy both essential and non-essential products without denting their income.
However for companies supplying these products they are making less profit, therefore they are more likely to move their factories aboard to countries where people are willing to ark for less and have poor human rights policies. Moreover, globalization brings political benefits to a country. For example trade barriers like tariffs and quotas have been removed in some countries, therefore it is easier for trade to proceed between different countries building political relationships and adding wealth from exportation.
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The EX. Is an example of this where trading is very common between countries. Although this can be very beneficial to a country, in the long term it could become a problem. Many may become reliant on others to supply products to them and as population increases so will demand. Manufactures may not be able to make these items in time; this could cause political stress between countries and businesses. Also the fact of loss of identify, many businesses will be forced to close as their product may be cheaper to import elsewhere and this will have a bad effect on the country economy.
Furthermore, globalization brings opportunities for the people not only in the area it is taking place in but far beyond. An example of this is the Disney industry; the French paid $2 billion for the construction of Disneyland Paris ensuring 30,000 Jobs, and Disney employs a total 166,000 people worldwide. However this can cause many problems one of which is migration. People may migrate to a different country in search of Jobs when a new business decides to set up a factory or a hotel there.
London has become the world’s most multicultural city, with people coming in daily. The countries resources may not be able to support its demand so quickly as population grows rapidly, therefore having a negative effect on the economy as loans may have to be taken out to support infrastructure and expand amenities. Continuing, globalization has an obvious good impact on tourism, people have been influenced to travel further overseas. Disney has made full use of this via their hotels; Disneyland Paris in 2007 had a huge 14. 5 million visitors in one year alone.
Tourists bring money into countries and this is especially useful for developing countries such as Kenya where globalization has made prominent of their booming safari industry with hundreds of thousands making holiday there. However, the tourist industry is only seasonal, so mass amounts of people will enter in the summer months or holiday months, therefore when these periods are over hotels are left empty. Also the area, for example fisherman may find it harder to do their Jobs when Jet ski companies are running at the beach also.
It is also known that prices of items in these areas rise as tourists are able to pay this amount but locals may struggle. Concluding I believe that the benefits globalization brings like Jobs, tourism, political and economic strength outweighs many of its cons. For developing countries globalization is needed to bring them forward into the 21st century and while many countries are Just starting to branch their factories elsewhere, it creates many Jobs and in time the human rights system will improve.