Effects of Globalization

Effects of
Globalization
JERICO T. TAN
The Benefits of Globalization
Globalization has benefits that

cover many different areas. It
reciprocally developed economies all
over the world and increased cultural
exchanges. It also allowed financial
exchanges between companies,
changing the paradigm of work.
Many people are nowadays citizens
The Engine of Globalization – An

Economic Example
◦ The most visible impacts of globalization are
definitely the ones affecting the economic
world. Globalization has led to a sharp
increase in trade and economic exchanges,
but also to a multiplication of financial
exchanges.
◦ In the 1970s world economies opened up and
the development of free trade policies
accelerated the globalization
The Engine of Globalization – An Economic Example
◦ This acceleration of economic exchanges has led to
strong global economic growth. It fostered as well a
rapid global industrial development that allowed the
rapid development of many of the technologies and
commodities we have available nowadays.
◦ Knowledge became easily shared and international
cooperation among the brightest minds speeded things
up. According to some analysts, globalization has also
contributed to improving global economic conditions,
creating much economic wealth (thas was, nevertheless,
unequally distributed – more information ahead).
Globalization Benefits – A Financial Example
◦ At the same time, finance also became
globalized. From the 1980s, driven by neo-liberal
policies, the world of finance gradually
opened. Many states, particularly the US under
Ronald Reagan and the UK under Margaret
Thatcher introduced the famous “3D Policy”:
Disintermediation, Decommissioning,
Deregulation.
◦ The idea was to simplify finance regulations,
eliminate mediators and break down the barriers
A Cultural Example
◦ Together with economic
and financial globalization,
there has obviously also
been cultural globalization.
Indeed, the multiplication of
economic and financial
These human exchanges have
exchanges has been
contributed to the development
followed by an increase in
of cultural exchanges. This
human exchanges such as
migration, expatriation or means that different customs
traveling. and habits shared among local
communities have been shared
among communities that
A Cultural Example
◦ Good examples of cultural globalization are, for instance,
the trading of commodities such as coffee or avocados.
Coffee is said to be originally from Ethiopia and cosumed
in the Arabid region. Nonetheless, due to commercial
trades after the 11th century, it is nowadays known as a
globally consumed commodity. Avocados, for instance,
grown mostly under the tropical temperatures of Mexico,
the Dominican Republic or Peru. They started by being
produced in small quantities to supply the local
populations but today guacamole or avocado toasts are
common in meals all over the world.
A Cultural Example
◦ At the same time, books, movies, and music are now
instantaneously available all around the world thanks to
the development of the digital world and the power of the
internet. These are perhaps the greatest contributors to the
speed at which cultural exchanges and globalization are
happening. There are also other examples of globalization
regarding traditions like Black Friday in the US, the
Brazilian Carnival or the Indian Holi Festival. They all
were originally created following their countries’ local
traditions and beliefs but as the world got to know them,
they are now common traditions in other countries too.
The Negative Effects of
Globalization
Globalization is a complex phenomenon. As

such, it has a considerable influence on
several areas of contemporary societies. Let’s
take a look at some of the main negative
effects globalization has had so far.
Globalization
Globalization on Cultural Loss

 Apartfrom all the benefits globalization has had on
allowing cultural exchanges it also homogenized
the world’s cultures. That’s why specific cultural
characteristics from some countries are
disappearing. From languages to traditions or even
specific industries. That’s why according to
UNESCO, the mix between the benefits of
globalization and the protection of local culture’s
uniqueness requires a careful approach.
Globalization
The Economic Negative Effects of Globalization
 Despite its benefits, the economic growth driven by
globalization has not been done without awakening

criticism. The consequences of globalization are far from
homogeneous: income inequalities, disproportional
wealth and trades that benefit parties differently. In the
end, one of the criticisms is that some actors (countries,
companies, individuals) benefit more from the
phenomena of globalization, while others are sometimes
perceived as the “losers” of globalization. As a matter of
fact, a recent report from Oxfam says that 82% of the
world’s generated wealth goes to 1% of the population.
Globalization
Globalization on the Environment

◦ Many critics have also
pointed out that globalization
has negative effects on the
environment. Thus, the
massive development of
transport that has been the
basis of globalization is also
responsible for serious
environmental problems such
as greenhouse gas
emissions, global warming or
air pollution.
Globalization
Globalization on the Environment

◦ At the same time, global economic growth and
industrial productivity are both the driving
force and the major consequences of
globalization. They also have big environmental
consequences as they contribute to the
depletion of natural resources, deforestation
and the destruction of ecosystems and loss of
biodiversity. The worldwide distribution of
goods is also creating a big garbage problem,
especially on what concerns plastic pollution.

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Effects of Globalization

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Effects of

Globalization has benefits that

The Engine of Globalization – An

Globalization is a complex phenomenon. As

Globalization on Cultural Loss

globalization has not been done without awakening

Globalization on the Environment

Globalization on the Environment

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