Positive And Negative Outcomes Of Globalisation

Globalisation is the process by which the planet is connected as you through trade and set-up communication. This connection is occurring quickly. According to Ervin and Smith (2008, p. 2), "Globalisation describes the ongoing global trend towards freer flow of trade and investment across borders and the resulting integration of the international economy. " The need to trade and conduct business with other countries Is what has led to Globalisation. Regional societies and cultures are trading with the other person leading to mutual co existence.


Globalisation has existed for a long time. This came into being due to agriculture and commercial revolution in the ancient times. Manufacturers and producers were required to trade with what they had. The construction of roads, invention of wheel carts, and the approaching of big cities such as Rome and Olympia contributed to trade between your regions. In modern times the invention of aero planes, trains, cell phones, internet and good network system has largely brought about the expansion of globalisation. This happened after World War 2 owing to the actual fact that peace needed to be conventional. This could only be attained through trade and communication.

The term globalisation is used in the media and by the planet leaders every now and then. Prime Minister Gordon Brown has said that it is a "fact and here to remain" (Gordon Browns speech to the CBI, Nov 2006). This statement means that globalisation has taken charge, and can continue to increase as the world becomes a worldwide village.

The growth of globalisation has occurred due to range of reasons. Tisdell & San (2004, p. 84), say that, "Globalisation has proceeded rapidly since 1960, mainly due to reduced man-made barriers to trade, such as reduced tariffs. "

Generally the lower cost of requirements for trade in the post war era has resulted in expansion of globalisation. The existence of technology such as computers and universal satellites has created a single market.

A lot of advertising that countries are doing for themselves is leading to verse responsiveness from other states. It is because countries are producing individual goods. Folks are traveling for themselves to acquire what they want since it is cheap and available.

Globalisation has caused competition among high-quality goods. Lewis & Richardson (2001, p. 39), declare that, "Global integration allows better performing firms, workers, and communities to grow faster than other firms, workers, and communities and so to increase their share of their industry, their lab our market, and/ or their region. " Further from that, trade that comes as a result of the enhances the shared relationship amid the countries.


As globalisation is growing and improve it brings some effect. This is because both the developed countries and developing countries are involved and the level of production is not the same. Some deal with raw material while others deal with manufactured goods. The global recession is also making some countries to suffer the challenge. According to Hedegaard & Lindstorm (2000, p. 50-51), there should be balance between the import and export conduced between developed and developing countries. There must be international equalization of factor prices. "Globalisation should lead to capital exports from professional to developing countries; exports of agricultural products and labour intensive manufacturers from developing to (initially) developing countries. " This will reduce the disparity between them.

The level of output has increased worldwide. It is because various countries are producing in anticipation of selling abroad. This increases the yield and production of further goods. This is advantageous because countries will never go in need. It'll ensure incessant way to obtain goods and services.

It in addition has led to development of ICT generally in most countries especially developing ones. It is because there is need for unremitting communication among the list of countries for trade purposes. Information is also necessary if business is likely to be conducted. It brings technical advancement especially to the developing countries. This is because they have to attain the standards of the core countries. It has been said that ICT is globalizing at a swift rate.

It has resulted in integration between diverse cultures and societies. This is because they indulge in trade. Due to these there is certainly exchange of culture and behavior. The planet becomes a village as a result. Integration also results in good co existence between different countries and diplomatic relations.


Globalisation has positive and negative effects. The constructive effect of globalisation is that it has generated opportunities for countries to market what they have. It is because they have got potential consumers for their goods. It has created a market place for goods, therefore this is positive as countries earn there revenues. Globalisation has also promoted the look of new technologies. This is because of the competition that exists between countries conducting the trade. Every country is wanting to supply the latest technology. This is good for people because their life is enhanced. Globalisation also results in growth and improvement of developing countries as they get new technology. It allows them to enhance the way of life of their people and this is also good as it enlightens people. In addition, it brings about good diplomatic relations amid countries. This due to relationship that exists such as economical ties. It generates peaceful coexistence and ensures that it is maintained. According to Molle (2003, p. 37), "It brings monetary benefits, highlighting the growth of some countries which may have opened their markets to international trade and investment. They point next towards the benefits in terms of peace and security. " They are a few of the positive outcomes of globalisation.

Globalisation has negative outcomes. An example may be the price create for the commodities in trade. These prices set at times cannot be achieved by the developing countries due to economical hardships such as global recession. It makes the problem to be unjust resulting in exploitation of the peripheral countries. Addititionally there is repatriation of profits back to the mother countries if the business was conducted far away. This is because individuals and companies who invest in other countries always take the gains back to their home countries e. g. Multinational companies. In addition, it leads to cases of monopolization by the earth economies. It is because they will be the forces that setup the market price for goods. They control the marketplace. This contributes to anguish of developing countries as poverty progresses.

According to Hewa and Stapleton (2005, p. 155), "The negative effects of globalisation can be varied and range from the impoverishment and depopulation of local communities as corporations or factories relocate to optimize competitiveness and unemployment rises. " They are a few of the negative reasons for globalisation.


Globalisation is consequently here to remain. It will continue steadily to grow as the entire world advances in to the future. It has integrated a lot of countries and enhanced peaceful co existence among them.

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