Efficient Markets: Companies can adjust their prices to what buyers (consumers) are willing to pay for. This relates to globalization because, businesses will then get their supplies from other countries that sell them at a lower price or that offer discounts so they can afford to adjust the prices for consumers. Which further expands their businesses internationally since they are buying materials from many different countries.
Increased Competition: Since many more businesses from different countries are all selling products/goods, they would reduce prices to obtain more consumers. This will make the products sell faster and the demand for the product will go up.
Outsourcing: Allows for businesses to use cheaper raw materials and allow for more job opportunities.By having more job opportunities, the minimum wage will rise due to the increase of demand for jobs. More job opportunities will decrease world poverty and unemployment rates significantly.
Productivity: Globalization allows for an increase of productivity meaning, countries will produce large quantities of the products they can make domestically. For example, Canada makes a lot of Maple Syrup, by making large quantities of this product will allow them to export the produce to countries that can not make Maple Syrup domestically. Also, since Canada cannot geographically grow certain produce so they must buy them from places that are able to produce them. Therefore, this allows for more businesses to expand internationally rather than only domestically.
Free Trade: Globalization increases free trading opportunities between companies, this allows for developed countries to invest in developing countries.Free trade also reduces the amount of tariffs or any form for barriers from imports and exports which allows for more trade to occur with any international businesses.
NEGATIVE
CULTURAL IMPACT: - The idea of western ideals might be detrimental to relationships around the world - What one nation might find normal or express through their values, another country might see this as a threat - Donald Trump seems to be a childish menace because of the way he acts and how the leader of the free world goes about publicly expressing himself - A nation who does not understand what western values are in place that lead to voting in such absurd leader can impact their traditions or values - With so many diverse opinions, religion and traditions, it is impossible to have complete understanding of every other country who can be affected in globalization or any global relations - Sometimes a nation can off-put themselves to another just by their traditions, what the US might find okay may not be suitable or in the best interest of a country such as Germany - Germany’s ideals does not comply to that of Donald Trump, and publicly state that they do not agree / dislike the leader
ECONOMIC IMPACTS: - Countries naturally work in the favour of the most richest and act on that by having relations that can compete in light of each others economy - This is negative as their is a “profile” that a country must fit in order to benefit them in the end - An example: if Canada was a third world country but had quality exports in things like; maple syrup, soft wood house materials and other things similar to that - Would a nation such as the US decide to involve themselves with an economical unstable / economically poor country such as Canada? - If Germany was the opposite of Canada and had the same exports of Canada but of lesser quality - Would the US feel more compelled to involve themselves with Canada or Germany? Obviously Germany - This then proves to be a negative impact as nations with the ability to provide quality trades in benefit to their economy would be affected and almost “left out” of any form of globalization - Countries with a higher economy will trade with nations alike or atleast nations that can show a economically stable form
POLITICAL IMPACT: - Political and state sovereignty are compromised in globalization as being open to other nations results in being exposed - Patriotism also plays a part in this as opening a nation up to collaboration in many different aspects begins to see a loss of independency - Any nation more or less prides themselves on some sort of part in society and leaving themselves vulnerable / being dependant through globalization can be demeaning - In the sense of taking care of oneself a nation through its pride and ego experiences that loss and can sometimes appear weaker than the next - An example: if a nation becomes totally dependant on another, here could be Canada and China, it goes to show the lengths one must go to achieve something - Canada refuses to comment on any actions the Chinese take as they fear their chances of gaining more exports with China will diminish those opportunities - Another example could be a nation like Hong Kong, they pride themselves on the democratic socialist ideology incorporated into their society - Exposing themselves allows other nations to critique an ideology built over a significant period of time and can further develop into conflict
ENVIRONMENTAL IMPACT: - The coal consumption of nations can be frowned upon but also needed as globalization requires nations to put out more exports for globalization to function - An example: China joined ‘The World Trade Organization’ in 2001 and ever since then, their coal consumption has reached alarming levels - In 2016 China had reached levels exceeding 3.0 billion metric tons of oil and has thus affected the environment of China and nations surrounding - This then means the carbon footprint that globalization has on these nations is negatively affect the environment - Having a large carbon footprint leads to global warming and begins to affect climate - With carbon emissions arrives a larger concern that just the nation raising their Co2 emissions - Over a collective period of time, with other nations providing their fair share of emissions, more aspects the environment will be affected negatively at the cost of globalization
