5 Advantages and Disadvantages of Globalization

Globalization is a hot button issue that frequently comes up in political discourse. Representing both a solution and problem, there is no right or wrong when it comes to globalization. Instead, we are left with a number of advantages and disadvantages that depend on personal opinion.

The Pros of Globalization

1. Access To the Best Talent
Globalization provides access to the best talent in the world. For example, a century ago, a company in the United States was limited to what talent was available to them. This might extend to a talent pool the size of the United States, but did not usually extend beyond that. Now however with globalization, it is possible to seek talent from almost anywhere in the world. Now if you are looking for the best X, then you not only have the population of the US to sort through, but most of the population of the world.

2. Decreasing the Price of the Product
Globalization also leads to some of the cheapest prices on the market. With labor and materials being found abroad, things can be made so cheaply that even with the cost of shipping tacked on, the overall cost of production is low.

3. Increased Business Opportunity Abroad
With globalization come increased opportunities for businesses locally to reach out abroad. By expanding into other countries, these companies can provide incredible benefits to their local community while also growing the business. In addition, it is an excellent way for the cultures to spread and interact with one another.

The Cons of Globalization

1. Job Flight From Wealthier Countries
As experienced in the Unites States, globalization has led to a decrease in manufacturing jobs. Once forming the backbone of the country, individuals in other countries now perform these jobs. As a result, unskilled labor positions are hard to come by in the United States. Individuals now have to find jobs that they can do, creating a higher rate of unemployment.

2. A Lack of personal Pride in Locally Created Goods
There is a certain pride that comes from things made locally. American Steel is one such example of a product made in the United States that was a badge of pride among residents. With jobs and production going elsewhere, this pride is mostly gone and we are left with the saying, “America used to make things.”

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