1) access to a larger market - advantage
2) loss of jobs in developed countries - disadvantage
3) depletion of natural resources - disadvantage
4) increase in production of goods
The globalization is a process that became dominant in the world. It managed to connect the countries and the people from all over the globe, and that has had a huge impact on the global economy. This economic globalization has its advantages and disadvantages, thus its supporters and critics. The employment rates in the developing and less developed countries are constantly on the rise because they have cheap labor force. On the other side, the employment rates in the developed countries have started to decline because of the same reason. The access to the market has been made much easier, and it actually became a global market, which is excellent. The spreading out of the corporation around the world though managed to have very negative effect on the natural resources of the poorer nations by depleting them, as well as destroying the environment.
Benefits:Access to a larger marketIncrease in production of goods
Costs:Loss of jobs in developed countriesDepletion of natural resources.
On the one hand, a global market means that a company or firm can potentially reach a larger market to sell its products and services. And in turn, make more profit. On the other hand, it also means that the competition is global and that a firm has to compete in this larger market with hundreds of firms. This often means that to be competitive, companies have to lower their costs. One easy way of doing that is by outsourcing or moving parts of their production process to countries with lower salaries. This leads to the loss of jobs in the home countries.
The increased competition and the larger market also mean that more goods are produced at a better price for the customer. However, this production can easily get out of hand and deplete natural resources.