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Globalization, or a series of changes leading to a greater interdependence and
integration of the world socially, economically, politically, and culturally, is an
ongoing process that commenced centuries before with communication and trade
between ancient civilizations, it was only in recent years that globalization became a
revolutionary process fundamentally changing the way people live and interact with
the rest of the world. The invention of the Internet by Tim Berners-Lee, coupled with
cutting-edge transportation technology, paved the way for a greater degree of
integration of the world than ever before.
Globalization: Trends, Risks, and Risk Prevention, globalization refers to the
increasing interdependence of the world economy as a result of the growing scale of
cross-border trade of commodities and services, flow of international capital and
wide and rapid spread of technologies. It is well known that economic globalization is
not equally fair among different countries due to differences in power and resources.
As for the developed countries, globalization brings them more advantages and
profits; the developing and undeveloped countries, instead, are often at risk as the
developed countries control the rules of an increasingly globalized economy. Thus,
economic globalization is often regarded as a double-edged sword.
There is no question that globalization greatly benefits developed countries. For
example, developed countries are able to expand their businesses to other countries
more easily. That is, globalization offers them a larger market, which contributes to
higher profits and higher economic development.
Furthermore, it is more convenient for developed countries to take advantage of cheap
resources in less developed countries, such as lands, labour, and natural resources, to
enhance the developed countries’ economy. At the same time, large corporations are
moving their factories to less developed countries, outsourcing pollution. In theory,
developing countries can make full use of foreign capital, high technology, successful
experience, and excellent talents to contribute to the rapid development of their own
economy. Economic globalization seemingly helps transfer and optimizes national
economic structures, as people in developing countries can learn from developed
countries directly.
With regard to the risks globalization brings, developed countries assume less than
other countries, because developed countries are making and controlling the rules of
the game of economic globalization. Even though developed countries are accused of
sending jobs overseas and ultimately hurting their own countries as their
unemployment rates increase, harming the stability of their society, if we pay attention
to developing and undeveloped countries, we see that developing countries suffer
many more risks, especially if they are not granted freedom of speech. The expansion
of foreign companies harms the development of local business and brands, as foreign
companies who have the ability to open up international locations are more powerful
than local competitors. Lands, labour, and natural resources from developing countries
are exploited by developed countries in unfair ways, often leading to wasted resources
and unsustainable practices that hurt the local economy. Ultimately, economic
globalization sharpens the economic imbalance between developed and developing
countries.
Broadly speaking, globalization is a double-edged sword for all countries, but
developed countries obviously master the advantageous position to gain more benefits

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as they exploit developing countries. Unfortunately, studies show that economic
globalization is an inevitable tendency. This leaves us with the question, how can
developing and undeveloped countries meet the challenges presented by increasing
globalization?
Advantages of Globalization:
I. It opens the borders between the nations and increases the awareness about the
differences between us (racial, religious, traditions) and how they can be
managed in our favour.
II. According to a Forbes article: It also provides poor countries, through infusions
of foreign capital and technology, with the chance to develop economically and
by spreading prosperity, creates the conditions in which democracy and respect
for human rights may flourish. This is an ethereal goal which hasn’t been
achieved in most countries.
III. It can offer a global market in which all the people can consume the same
series of goods based on their preference. For example, any person in the world
can buy an iPhone, drink a Cola and eat a Mac hamburger. (Actually, I don’t
know if it should be in the pro list, especially when I think about McDonald's).
IV. Free movement. This is a big advantage - people can travel and the labour force
can move. Yet, we can see immigration, culture clashes, and other negative
sides of this.
Disadvantages of globalization:
I. Free trade simply kills competition by letting the developed countries surpass
the poor ones. It is namely the globalization which leads to an even wider
discrepancy in wealth distribution. This is why almost half of millionaires live
in the US and not in China (even if its population exceed the US by 5.5 times)
Pakistan (even if it has almost the same population), Indonesia, Nigeria,
Brazilian, or some other country:
II. Globalization made possible the US to rule the world with the help of the USD
as a world reserve currency. This wouldn't be possible in an isolated world.
III. Globalization killed traditions of hundreds of nations and tribes. This is why
most of you don’t know African movies and music, Chinese movies and music,
Russian movies, etc. but everyone knows Hollywood movies and the trash
music promoted on YouTube. In short, all the crazy and shameful qualities of
the Western world are propagated in the world to make our brains kind of
uniform.
IV. Globalization made corporations flourish and killed small companies and
middle class. They make the rules. They decide what’s good and what’s bad.
Monsters like Google, Pfizer, Monsanto, McDonald’s, Exxon, Chevron, etc.
will decide what’s good and what’s bad for you and no-one will have the power
to oppose. Smaller business can simply follow the trends - they can’t create
new trends. The monopoly is huge. A Forbes article notes well that you can
find multinational corporations that are accused of social injustice, unfair
working conditions (including slave labour wages, living and working

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conditions), as well as lack of concern for environment, mismanagement of
natural resources, and ecological damage.
V. The poor, illiterate, unskilled and asset less people lost out due to globalisation.
Indigenous people are the most vulnerable sections of society. Integration into
the global economy occurred without their consent. Their rights, livelihood and
culture were not adequately protected. Massive dislocation and disruption of
their livelihood took place due to investments in extractive industries and mega
hydro electric dams. Increased capital mobility and loss of employment
opportunities weakened the bargaining power of workers. Moreover there was
constant pressure to relax labour protection laws.
VI. Globalization can also have a significant negative impact on taxation. Since
many companies are able to trade with one country while being based in
another, large corporations often exploit tax havens such as Luxembourg,
Switzerland, and Hong Kong to avoid paying taxes in the countries where they
generate their profits. Workers in developed countries like the US face pay-cut
demands from employers who threaten to export jobs. This has created a
culture of fear for many middle class workers who have little leverage in this
global game.
However, in my opinion, the biggest threat of globalization is the creation of world
elite that will eventually rule the world. Gradually there is a world power that is being
created instead of compartmentalized power sectors. Politics is merging and decisions
that are being taken are actually beneficial for people all over the world. This is
simply a romanticized view of what is actually happening.