Impacts of Globalization

Impacts of Globalization

1. Causes

   • Advancements in technology have allowed for growth in transportation and communication

2. What is it?

   • It allows people and countries to share information and goods more efficiently.
   • The worldwide coming together of countries and nations

3. Positive Impacts

   • International Companies can sell their products in a different country, and often do so at a lower price.
     • This is made possible because the products may be produced under different conditions, and with different costs of labor.
     • This leads to the local countries actively reacting and making changes to their manufacturing to keep up with the competitors.
   • It allows for a larger market of goods, which means that more affordable products are available to more people
     • There is also an exchange of services, knowledge, cultural goods and even languages.

4. Negative Impacts

   • If companies move their production to less economically developed countries, those living in the industrialized countries lose their jobs.
     • This does lead to higher job oppurtunities in the economically weak countries, but this often leads to exploitation of labor, who are paid a low wage.
   • It leads to ecological impacts such as an increase in global warming.
     • The use of airplanes and ships for transportation of goods leads to an increase in pollution.
     • Global environmental standards are also often ignored by companies.