Advantages And Disadvantages Of Economic Globalization

Modern world is ever evolving, and so is its economy. Economic globalization is the system in which productions and markets in diverse countries are increasingly becoming interdependent because of the dynamic trade of goods and services and the flow of capital and technology (European Commission, 1997). Economic globalization causes many consequences throughout the world. Some may earn substantial benefits, while some may suffer from negative effects. Nonetheless, many evidences suggest that economic globalization benefits the majority of global citizen. Thus, this essay will outline advantages from economic globalization which are economic growth, per capita incomes increasing and higher living standard. First of all, economic

It may cause inequality. In both developed and developing countries, there are gaps between the rich and the poor. The existing gaps are from discrepancies in individuals. People who are more capable have access to better job opportunities which lead to high individual income, whereas others, who are perceivably less capable, do not have this luxury. This trend could continue resulting in the rich become richer and vice versa. According to urban sociologist Saskia Sassen (1998), a portion of world population may enjoy its prosperity while others may still be severely affected by poverty, an unfortunate result of inequality. However, the globalization is not the only factor that causes inequality between the rich and the poor in one nation. Other factors that translate into inequality can be ineffective management of the government or corruption. Ackerman (1999) also claimed that corruption increases poverty because the poor cannot get access to real available social services. In a nutshell, economic globalization has both positive and negative aspects. Nevertheless, it is involved with how we adapt to economic globalization. From a personal stance, economic globalization provides people with better living standard. It not only makes the world more united, but it strengthens the quality of the world citizen as well. Globalization has undoubtedly bring countless benefits to people throughout the world. As the economy grows, people have more opportunities to invest and earn more