# data[].attributes.body
globalization can be very controversial. its good for the economy and can lead to lower prices for consumers but it can also increase job displacement, bad working conditions and increase income inequality. there are positives and negatives to this topic you just have to weigh out which has More of an effect the good or the bad. we also have to think about how globalization effects climate change. a lot of the economy and just out world revolves around globalization so we kind of need it but it can be very bad for people I think that there is a better way of doing things that doesn't make people have bad working conditions or lose their jobs

# data[].attributes.body
Michael Johnson - Globalization can be thought of as a good or bad thing, it just depends on how it is done.

For Colombia, it is a good thing because it helped the country get more money once they got their freedom. This lead to Colombia to start urbanization and helped the citizens get more money. It is also bad for Colombia because mostly women work in the flower company, and most of them are single mothers. Human Rights workers have collected complaints of sexual harassment by the male higher ups.

For the United States of America, it is bad because the U.S. bought so much flowers from Colombia, that most of the flower farmers in the U.S. had to close their business.

# data[].attributes.body
Globalization has its positives and negatives some of its negatives being that it is harmful to the United States industry and it can lead to the loss of jobs for lots of people or bad working conditions. it can also cause increased inequality and cultural threats. but it also can cause lots of enviromental damage. some positives of globalization is economic growth and it can also lead to the creation of jobs and the spread of technology and it can also make it so things are more accesable and lead to lower pricing for things making lots of things more affordable.

# data[].attributes.attachment_link.readable_text
Image

Photograph by Bloomberg

Globalization is a term used to describe how trade and technology have made the world into a more connected and interdependent place. Globalization also captures in its scope the economic and social changes that have come about as a result. It may be pictured as the threads of an immense spider web formed over millennia, with the number and reach of these threads increasing over time. People, money, material goods, ideas, and even disease and devastation have traveled these silken strands, and have done so in greater numbers and with greater speed than ever in the present age.

When did globalization begin? The Silk Road, an ancient network of trade routes across China, Central Asia, and the Mediterranean used between 50 B.C.E. and 250 C.E., is perhaps the most well-known early example of exchanging ideas, products, and customs. As with future globalizing booms, new technologies played a key role in the Silk Road trade. Advances in metallurgy led to the creation of coins; advances in transportation led to the building of roads connecting the major empires of the day; and increased agricultural production meant more food could be trafficked between locales. Along with Chinese silk, Roman glass, and Arabian spices, ideas such as Buddhist beliefs and the secrets of paper-making also spread via these tendrils of trade.

Unquestionably, these types of exchanges were accelerated in the Age of Exploration, when European explorers seeking new sea routes to the spices and silks of Asia bumped into the Americas instead. Again, technology played an important role in the maritime trade routes that flourished between old and newly discovered continents. New ship designs and the creation of the magnetic compass were key to the explorers' successes. Trade and idea exchange now extended to a previously unconnected part of the world, where ships carrying plants, animals, and Spanish silver between the Old World and the New also carried Christian missionaries.

The web of globalization continued to spin out through the Age of Revolution, when ideas about liberty, equality, and fraternity spread like fire from America to France to Latin America and beyond. It rode the waves of industrialization, colonization, and war through the eighteenth, nineteenth, and twentieth centuries, powered by the invention of factories, railways, steamboats, cars, and planes.

With the Information Age, globalization went into overdrive. Advances in computer and communications technology launched a new global era and redefined what it meant to be "connected." Modern communications satellites meant the 1964 Summer Olympics in Tokyo could be watched in the United States for the first time. The World Wide Web and the Internet allowed someone in Germany to read about a breaking news story in Bolivia in real time. Someone wishing to travel from Boston, Massachusetts, to London, England, could do so in hours rather than the week or more it would have taken a hundred years ago. This digital revolution massively impacted economies across the world as well: they became more information-based and more interdependent. In the modern era, economic success or failure at one focal point of the global web can be felt in every major world economy.

The benefits and disadvantages of globalization are the subject of ongoing debate. The downside to globalization can be seen in the increased risk for the transmission of diseases like ebola or severe acute respiratory syndrome (SARS), or in the kind of environmental harm that scientist Paul R. Furumo has studied in microcosm in palm oil plantations in the tropics. Globalization has of course led to great good, too. Richer nations now can-and do-come to the aid of poorer nations in crisis. Increasing diversity in many countries has meant more opportunity to learn about and celebrate other cultures. The sense that there is a global village, a worldwide "us," has emerged.

Media Credits

The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. The Rights Holder for media is the person or group credited.

Director

Tyson Brown, National Geographic Society

Author

National Geographic Society

Production Managers

Gina Borgia, National Geographic Society

Jeanna Sullivan, National Geographic Society

Program Specialists

Sarah Appleton, National Geographic Society, National Geographic Society

Margot Willis, National Geographic Society

Specialist, Content Production

Producer

André Gabrielli, National Geographic Society

other

For information on user permissions, please read our Terms of Service. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. They will best know the preferred format. When you reach out to them, you will need the page title, URL, and the date you accessed the resource.

Media

If a media asset is downloadable, a download button appears in the corner of the media viewer. If no button appears, you cannot download or save the media.

Text

Text on this page is printable and can be used according to our Terms of Service.

Interactives

Any interactives on this page can only be played while you are visiting our website. You cannot download interactives.

# data[].attributes.attachment_link.description
Globalization is a term used to describe the increasing connectedness and interdependence of world cultures and economies.

# data[].attributes.attachment_caption
Do the positives outweigh the negatives?

# data[].attributes.body
Globalization is a complex process where goods and services can be imported and exported in exchange for money. This process will boost the overall economy and will supply money to the producers, however, there are many notable negative impacts of globalization. These consist of : inhumane working conditions, exceedingly low wages, and even discrimination. A key effect that can be and should be noted is that the managers and other higher ups will get extraordinarily wealthy from globalization, but the thousands of working who produce the project will get paid poorly. Unfortunately, wealthy business owners are drawn to the idea of utilizing children in the work force as they provide a cheap alternative to adult workers.

To conclude, there are several significant impacts that globalization has. These impacts are viewed differently depending on the lens that they are observed from. From the standpoint of governments, globalization causes an increase in the economy which positively affects them. On the other hand, the low-wage workers and severely mistreated and would likely argue that globalization is overall a negative tactic.

https://www.britannica.com/money/globalization

# data[].attributes.body
Although Globalization can have its positives, it overall has a negative impact on individual workers and economies. The working conditions in these work environments are often inhumane and dangerous. The garment industry in Bangladesh has hired around 4 million people but the average worker earns less in a month than the average American makes in a day. Another example of this is when in 2013, a textile factory building collapsed, killing 1,100 workers. These people often have no choice but to work in awful conditions just to feed their family.

Critics have also stated that employment opportunities often extend to children, resulting in child labor and luring kids away from school. The pressure of globalization encourages this environment in countries that do not offer sufficient protections for the workers. Studies have also suggested that Globalization may contribute to income inequality between the more educated and the less educated.

# data[].attributes.attachment_link.description
Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone.

# data[].attributes.body
Globalization is good for people around the world, not just in the United States. Globalization gives people around the world a job and money in their pocket, it might not be great pay but it’s still money. As we saw with the flower business in Colombia most of the workers were single mothers. During the American Holidays like Valentines day and Mothers day the price of flowers will increase which will have more flowers imported, which means the pay could be increased. Globalization gives access to new cultures as well as spread of technology and innovation. Globalization has also increased the size of the U.S economy by 2.1 Trillion. Since WWII the  jobs in America  have gone up increasingly. Since the 1980’s globalization has raised income in many of the poorer nations.

# data[].attributes.attachment_link.authors[].name
Originally published October 29, 2018Last updated August 16, 2024

# data[].attributes.attachment_link.description
Check out this guide to the global economy and how it affects US businesses, workers, and consumers.

# data[].attributes.body
Globalization is bad for individuals and the United States, as it has led to the exploitation of workers and hurts the environment, outweighing any short-term economic benefits it may have.

While Colombia's flower industry has become a large contribution to the economy, employing over 130,000 individuals, the costs that come with it are extremely expensive (The Guardian). The majority of workers are women, many of them being single mothers. These workers often endure long hours, use harmful pesticides, and make low wages (The Guardian). According to OER Project, during seasons like Valentine's Day, workers may work up to 100 hours a week, while earning minimal pay. Additionally, there is lots of discrimination towards workers.

Environmental concerns are also growing due to big industries. The use of pesticides poses health risks to workers and nearby communities. The carbon footprint that comes with transporting flowers globally contributes to negative environmental effects.

In conclusion, while globalization has brought economic opportunities to Colombia's flower industry, it has also led to significant human and environmental costs. The negative impacts, including worker exploitation and environmental harm, suggest that globalization has had a detrimental effects on the industry.

https://www.theguardian.com/sustainable-business/2015/feb/12/the-women-suffering-for-your-valentines-day-flowers?utm

https://www.oerproject.com/OER-Materials/OER-Media/PDFs/1750/Unit9/The-Flower-Industry-in-Colombia-The-Good-the-Bad-and-the-Ugly-of-Globalization

# data[].attributes.attachment_link.title
The women suffering for your Valentine’s Day flowers

# data[].attributes.attachment_link.description
Behind the millions of imported flowers we buy every year is a mostly female workforce subjected to low pay and poor conditions

# data[].attributes.body
Globalization is BAD, in Bangladesh they employ as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day. On top of this fact many of these employees have unreasonable hours working everyday. "globalization can have a negative effect on local or emerging economies and individual workers." Stated by National Geographic, This information connects with the points in the article: The Good, the Bad and the Ugly of Globalization. 100,000 Colombian flower workers are women, and many of which are single mothers. They must go through long hour shifts with zero breaks. Globalization strips away peoples humanity by overworking the individual workers producing these goods. Not only is it wrong in a physical sense, it is also wrong morally. Many of these countries employ children before they are even 14. This increases the high risk of injury and death. Altogether globalization causes more harm then help for the world.

~Jaden Fazz

# data[].attributes.body
Globalization is truly a opinion based topic . I believe that globalization is for the good. Especially for the people and United States. This is good for the United States because it is good to access new markets ability to spread the knowledge and technology. Also this lowers consumer prices and offers a widespread of variety options for the people even for Columbia this is good for as well because it offers them a leverage and a place in the countries through trading and investments. This is good because they are creating jobs. this also was good because Columbia has a lot more farms now they benefit from the lower tariffs. A quote from the Motion Point article is 'Effective language communication strategies are key in global business. They help people understand each other and build relationships. This leads to successful cross-border efforts" this supports the claim that global business Is good because you get to make relationships with countries. A quote from the flower in Colombia: The Good , the Bad and the Ugly of globalization is Colombia flower industry a billions dollars in profits per year and employs 100,00 low skilled workers. This supports my claim because it shows that it creates opportunities and creates good systems for people.

in conclusion this shows that globalization is good in some ways for the American and Columbia people and governments.

# data[].attributes.attachment_link.readable_text
July 25, 2022

The term globalization has been in common use since the 1980s. Yet economic globalization traces its roots back to the Silk Road. Established in 130 B.C., the network of trade routes enabled China to open up trade with Europe and the Middle East. This movement of people, goods, capital, and knowledge would ultimately pave the way for the development of a global economy.

The first wave of modern globalization began in the early 1800s with the establishment of the gold standard. Centuries of European colonization led to technological advances and worldwide trade, but there was no global price convergence. When England fixed its currency to specific amounts of gold, it became the first international standard currency, and facilitated trading and investment.

However, World War II would greatly disrupt global relations. In the mid-1940s, the United States attempted to rejuvenate international trade by establishing new ground rules. This kicked off a second wave of globalization that is ongoing today.

As you can see, the process of globalization has played a major role in the development of the modern world. But what is it exactly? And what are the advantages and disadvantages of conducting global business this way?

Watch 5 min Webinar on the Total Cost of Web Translation with MotionPoint's CEO, Evan Kramer.

What Is Globalization?

Globalization is defined as the interdependence of world economies and the cross-border trade of goods and services, technology, investment, and information. In business, globalization provides access to capital, labor, and resources. An auto manufacturer, for example, may design a car in Japan, produce parts in the United States, and have it assembled in Mexico.

Yet cultural, political, and linguistic differences can make it difficult to enter new markets. To increase the odds of success, companies adapt products to meet the needs and preferences of local buyers through a process known as localization. Think of localization as one piece of a wider globalization strategy. (For more information, read our blog on globalization vs. localization.)

The Pros and Cons of Globalization

Today, globalization-and the localization it sparks-is growing faster than ever. As we enter a third wave that involves a digital economy, advanced technology, and cybercrimes, it's vital to understand the impact worldwide.

Pros of Globalization
1. Access to New Markets
Globalization gives businesses the opportunity to expand into new markets, reach international buyers, and increase revenue.

Over time, companies can experience saturation for demand of their products or services domestically. By expanding globally, they can continue growing by meeting foreign demand. In many cases, you may just need to translate your website in order to achieve this.
2. Spread of Knowledge and Technology
In order to cooperate globally, companies must share similar technology and a technological structure. E-commerce, for example, allows companies to sell products worldwide through Amazon.com.

Similarly, a centralized base of knowledge allows companies to quickly transfer information and develop innovative solutions. For example, in the healthcare sector that means new medications and medical devices can go to market faster in different countries.
3. Enhanced Global Cooperation and Tolerance
Globalization enhances cooperation by enabling countries to specialize. This allows them to leverage their economic strengths and trade those products for other resources. For example, a country in South America that specializes in sugar cane can export it to a developed country in exchange for manufactured goods.

On an interpersonal level, studies have shown that globalization promotes tolerance, as people are exposed to new cultures and network with others across the globe.
4. Promotes Economic Growth
Studies have found that globalization enhances economic growth by distributing resources more efficiently because countries can specialize in activities with comparative advantages. It also promotes growth indirectly through complementary reforms in terms of capital and financial development.

China, the country with the biggest positive change in globalization, saw a growth rate in 2000 that is 2.33 percentage points higher than in 1975 due to increased integration.

Get our limited-time BOGO offer and take your business to new global markets

Cons of Globalization
1. Increased Competition
Although free trade can increase a nation's wealth, it also increases competition. Local businesses must compete with multinational corporations that produce cheaper goods at lower costs, which puts them at a disadvantage.

At the same time, the increase in choices impacts buying behaviors, as customers expect high quality products at low prices. That means companies must continuously adapt to meet demands.
2. Exploitation of Labor and Resources
Wealthy, industrialized nations sometimes enter trade agreements with developing countries in order to exploit weak labor and environmental laws. For example, the United States has been known to use foreign sweatshop labor to produce cheaper goods.

Lack of environmental regulations in some developing countries also allows developed countries to import resources such as precious metals at lower prices. This results in both lasting environmental damage and human rights abuses.
3. Imbalanced Trade
A trade imbalance, also known as a trade deficit, occurs when a country spends more on imports than it makes on exports. This creates a shortfall in capital that the country must make up for either by borrowing money from foreign lenders or permitting foreign investments in its assets.

While lending and investment help promote economic growth, these strategies can be risky-especially for a developing country. Throughout the 1990s, Thailand, Indonesia, and Malaysia ran large trade deficits and relied on foreign capital to make up for it. Yet when the Asian financial crisis hit in 1997, foreign investors backed out, leaving these countries in a precarious financial position.
4. Domestic Job Loss
When industrialized countries outsource labor, it causes a shortage of jobs domestically. Laborers whose skills are no longer in demand experience higher unemployment, and struggle to adapt to the changing labor market.

For example, the U.S. trade deficit with China eliminated 3.7 million jobs between 2001 and 2018, and more than 75% of those losses were in manufacturing.

Overcoming Language Barriers in Global Business

Multilingual communication plays a pivotal role in breaking down barriers and facilitating seamless interactions between colleagues, clients, and partners from diverse linguistic backgrounds. The ability to communicate in the native language of counterparts enhances relationships, fosters trust, and cultivates positive impressions.

A key challenge in international business is not only understanding different cultures but also bridging linguistic gaps that can impede collaboration and hinder successful transactions.

In the realm of online engagement, website localization emerges as a critical component. Businesses must tailor their digital content to resonate with local audiences, considering linguistic nuances and cultural sensitivities. A localized website enables companies to connect with potential customers in their preferred language, providing a sense of familiarity and accessibility.

Overall, effective language communication strategies stand as an essential bridge in global business, facilitating understanding, building relationships, and ultimately contributing to prosperous cross-border endeavors.

Take Full Advantage of Globalization

Despite the challenges, expanding into foreign markets remains one of the most popular ways to grow a business. However, before you can "go global" you need a strategy that addresses the language, cultural, and legal barriers in different nations. Fortunately, MotionPoint is here to help you navigate the intricacies of globalization and develop a localization strategy that ensures business success.

Ready to launch in a new market? For a limited time, take advantage of our amazing Contact MotionPoint today. BOGO offer! If you want to test out a new, foreign market like Mexican Spanish, why not try out Spanish for South American markets? If you sign up to get one language, we'll give you the second for free! Drop us a line today.

# data[].attributes.attachment_link.title
The Key Advantages and Disadvantages of Globalization

# data[].attributes.attachment_link.description
Knowing the advantages and disadvantages of globalization is crucial to expanding into new markets successfully. Learn more about the pros and cons here.

# data[].attributes.body
Globalization can be Harmful because it often leads to job loss and poverty in developing countries. Most of the time Globalization causes huge gaps between the rich and poor. As wealth becomes important when handling with multinational business's allowing the rich to get more rich and making an unbalanced economy. Globalization puts a lot of pressure on the environment. With all the factories running all day polluting the earth and causing a major climate change.

# data[].attributes.attachment_link.readable_text
drivers and impacts

Poverty, climate change, the breakdown of democracy, an epidemic of depression - the world is facing a convergence of crises. The root cause...? Economic globalization.

But what is globalization exactly and why is it causing such destruction? On this page we will dive deeper into the origins of our global economy, key elements of globalization and the numerous costs for people and planet.

Today, the process of economic globalization is driven by the deregulation of trade and finance, which gives corporations and banks the freedom to operate globally. This process started 500 years ago, when conquest and colonialism laid the foundation of our modern global economy. European powers spread an extractive economic system - one reliant on slavery, the destruction of local cultures and economies, and the imposition of monocultural ideas and practices - all across the world.

Since the mid-20th century, national governments and international institutions have been nearly unanimous in supporting globalization, often through policies that prop up large transnational corporations to the detriment of small and local businesses. With the help of these policies, a single corporate-dominated world market has emerged.

For a brief overview of how slavery, debt, and corporate control have shaped the global economy. Watch this excerpt from our film 'The Economics of Happiness':

Since the mid-20th century, national governments and international institutions have been nearly unanimous in supporting globalization, often through policies that prop up large transnational corporations to the detriment of small and local businesses. With the help of these policies, a single corporate-dominated world market has emerged.

For a brief overview of how slavery, debt, and corporate control have shaped the global economy. Watch this excerpt from our film 'The Economics of Happiness':

Corporate-funded think tanks and media outlets would have you believe that this global market is characterized by the free flow of ideas and technology, international collaboration, interdependence, and a worldwide sense of community - in other words, that the global market has created a 'global village'.

But the reality is far different from this rosy picture.

Our global economic system has become so large and complex - with producers and consumers, CEOs and workers, and cause and effect all far removed from each other - that ethical choices are almost impossible to make, and environmental and human rights disasters have become commonplace.

It can be challenging to understand the workings of a system that is so vast, out-of-control, and deeply ingrained into the fabric of our daily lives. But by breaking the global economy down into five key structural elements, and understanding how it came to exist in the first place, we can begin to comprehend it - and, ultimately, RESIST IT. Use the tabs below to explore these five elements:

A fish served in a California restaurant may have been caught illegally on a Thai fishing vessel manned by slaves. A t-shirt bought in Germany may have been sewn in a Bangladeshi sweatshop, where workers labor in unsafe conditions for starvation wages.
The way trade works in the global economy can be insane - it wastes resources, worsens climate change, and undermines the livelihoods of millions of small-scale producers worldwide.Watch this 3-minute tongue-in-cheek video 'Insane Trade':

In the long term, the globalized economy has no winners. Small farmers, the poor, and the disenfranchised have been the first to suffer its most devastating consequences. But as the economic, social and environmental costs of globalization mount, not even the wealthy will escape its impacts. These include:

Environmental breakdown - Erosion of democracy - Loss of livelihoods - Unhealthy urbanization - Lack of resilience -
Growing wealth gap - Loss of food security - Declining health - Psychological breakdown - Violence and conflict

If you're feeling overwhelmed by the enormity of the global economic system, you're not alone! But the global economy is man-made, and therefore can be changed. Choose one of the topics below to find out:

Find out about the benefits of localization and how we can make the shift from the global towards the local.

Find out what Big Picture Activism entails, and how to take the steps to make a change.

Join the global movement to build resilient local economies. Take action with the tools in this guide.

Globalization and Terror - for people in the modern world, there may be nothing more difficult to comprehend than the group calling itself the Islamic State, or ISIS. For people... Read now →

Globalization and the American Dream - implicit in all the rhetoric promoting globalization is the premise that the rest of the world can and should be brought up to the standard of living of the West... Read now →

Globalization's Deadly Footprint - that pollution is bad for our health will come as a surprise to no one. That pollution kills at least 9 million people every year might... Read now →

# data[].attributes.attachment_link.title
Globalization - why is it so destructive?

# data[].attributes.attachment_link.description
What is globalization exactly and why is it causing such destruction? On this page we will dive deeper into the origins of our global economy, key elements of globalization and the numerous costs for people and planet.

# data[].attributes.body
Anthony Fredericksen- Globalization is bad for individuals in 3rd world countries. Two reasons I have found on the website Effects of Economic Globalization from National Geographic are the working conditions for these people in 3rd world countries are in terrible shape and in many countries Globalization results in child labor. In 3rd world countries the working conditions are in a terrible state. "In 2013, a textile factory building collapsed, killing more than 1,100 workers." This is one example of something terrible happening to a lot of people just because of bad working conditions. Studies have also shown that workers in Bangladesh employs an estimated four million people but the average worker earns less in a month than a U.S worker would earn in a day.

Globalization also results in child labor, the article states, "employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school." It is shown that critics try and blame the pressures of globalization for this. But children should not have to be taken from their families to work in the days as an effect of this.

# data[].attributes.attachment_link.description
Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone.

# data[].attributes.body
Globalization is a very complex issue for many individuals, and affects different people and different places differently. For hardworking Colombian laborers, Globalization is an economic blessing like no other. "Day sales made up 20 percent of the Colombian floral industry's annual revenue"(Article). These new inflated profits show clear evidence that Globalization boosted Colombia's economy greatly in many areas. Many businesses like floral sales, shot up to 20% of their entire years profits suddenly made in a single day. This most likely ended up feeding many families and paying many bills for these workers.

By contrast, many of our own floral businesses in the United States went down in revenue, "which has led U.S. flower producers withdraw largely from the floral market"(Article). Colombia's domination of the floral market may help us in supplying all these flowers to our stores, but has some major downsides when it comes to the effects on our economy. If Colombia is mass producing flowers, than the U.S. markets are left with nothing to grow, because they are being grossly out-competed by a bigger market of that product.

In conclusion, there are some very important pros and cons to this system involving economy and product production, but "despite the challenges, expanding into foreign markets remains one of the most popular ways to grow a business."(Online Article)

https://www.motionpoint.com/blog/advantages-and-disadvantages-of-globalization-preparing-for-expansion/

# data[].attributes.attachment_link.readable_text
July 25, 2022

The term globalization has been in common use since the 1980s. Yet economic globalization traces its roots back to the Silk Road. Established in 130 B.C., the network of trade routes enabled China to open up trade with Europe and the Middle East. This movement of people, goods, capital, and knowledge would ultimately pave the way for the development of a global economy.

The first wave of modern globalization began in the early 1800s with the establishment of the gold standard. Centuries of European colonization led to technological advances and worldwide trade, but there was no global price convergence. When England fixed its currency to specific amounts of gold, it became the first international standard currency, and facilitated trading and investment.

However, World War II would greatly disrupt global relations. In the mid-1940s, the United States attempted to rejuvenate international trade by establishing new ground rules. This kicked off a second wave of globalization that is ongoing today.

As you can see, the process of globalization has played a major role in the development of the modern world. But what is it exactly? And what are the advantages and disadvantages of conducting global business this way?

Watch 5 min Webinar on the Total Cost of Web Translation with MotionPoint's CEO, Evan Kramer.

What Is Globalization?

Globalization is defined as the interdependence of world economies and the cross-border trade of goods and services, technology, investment, and information. In business, globalization provides access to capital, labor, and resources. An auto manufacturer, for example, may design a car in Japan, produce parts in the United States, and have it assembled in Mexico.

Yet cultural, political, and linguistic differences can make it difficult to enter new markets. To increase the odds of success, companies adapt products to meet the needs and preferences of local buyers through a process known as localization. Think of localization as one piece of a wider globalization strategy. (For more information, read our blog on globalization vs. localization.)

The Pros and Cons of Globalization

Today, globalization-and the localization it sparks-is growing faster than ever. As we enter a third wave that involves a digital economy, advanced technology, and cybercrimes, it's vital to understand the impact worldwide.

Pros of Globalization
1. Access to New Markets
Globalization gives businesses the opportunity to expand into new markets, reach international buyers, and increase revenue.

Over time, companies can experience saturation for demand of their products or services domestically. By expanding globally, they can continue growing by meeting foreign demand. In many cases, you may just need to translate your website in order to achieve this.
2. Spread of Knowledge and Technology
In order to cooperate globally, companies must share similar technology and a technological structure. E-commerce, for example, allows companies to sell products worldwide through Amazon.com.

Similarly, a centralized base of knowledge allows companies to quickly transfer information and develop innovative solutions. For example, in the healthcare sector that means new medications and medical devices can go to market faster in different countries.
3. Enhanced Global Cooperation and Tolerance
Globalization enhances cooperation by enabling countries to specialize. This allows them to leverage their economic strengths and trade those products for other resources. For example, a country in South America that specializes in sugar cane can export it to a developed country in exchange for manufactured goods.

On an interpersonal level, studies have shown that globalization promotes tolerance, as people are exposed to new cultures and network with others across the globe.
4. Promotes Economic Growth
Studies have found that globalization enhances economic growth by distributing resources more efficiently because countries can specialize in activities with comparative advantages. It also promotes growth indirectly through complementary reforms in terms of capital and financial development.

China, the country with the biggest positive change in globalization, saw a growth rate in 2000 that is 2.33 percentage points higher than in 1975 due to increased integration.

Get our limited-time BOGO offer and take your business to new global markets

Cons of Globalization
1. Increased Competition
Although free trade can increase a nation's wealth, it also increases competition. Local businesses must compete with multinational corporations that produce cheaper goods at lower costs, which puts them at a disadvantage.

At the same time, the increase in choices impacts buying behaviors, as customers expect high quality products at low prices. That means companies must continuously adapt to meet demands.
2. Exploitation of Labor and Resources
Wealthy, industrialized nations sometimes enter trade agreements with developing countries in order to exploit weak labor and environmental laws. For example, the United States has been known to use foreign sweatshop labor to produce cheaper goods.

Lack of environmental regulations in some developing countries also allows developed countries to import resources such as precious metals at lower prices. This results in both lasting environmental damage and human rights abuses.
3. Imbalanced Trade
A trade imbalance, also known as a trade deficit, occurs when a country spends more on imports than it makes on exports. This creates a shortfall in capital that the country must make up for either by borrowing money from foreign lenders or permitting foreign investments in its assets.

While lending and investment help promote economic growth, these strategies can be risky-especially for a developing country. Throughout the 1990s, Thailand, Indonesia, and Malaysia ran large trade deficits and relied on foreign capital to make up for it. Yet when the Asian financial crisis hit in 1997, foreign investors backed out, leaving these countries in a precarious financial position.
4. Domestic Job Loss
When industrialized countries outsource labor, it causes a shortage of jobs domestically. Laborers whose skills are no longer in demand experience higher unemployment, and struggle to adapt to the changing labor market.

For example, the U.S. trade deficit with China eliminated 3.7 million jobs between 2001 and 2018, and more than 75% of those losses were in manufacturing.

Overcoming Language Barriers in Global Business

Multilingual communication plays a pivotal role in breaking down barriers and facilitating seamless interactions between colleagues, clients, and partners from diverse linguistic backgrounds. The ability to communicate in the native language of counterparts enhances relationships, fosters trust, and cultivates positive impressions.

A key challenge in international business is not only understanding different cultures but also bridging linguistic gaps that can impede collaboration and hinder successful transactions.

In the realm of online engagement, website localization emerges as a critical component. Businesses must tailor their digital content to resonate with local audiences, considering linguistic nuances and cultural sensitivities. A localized website enables companies to connect with potential customers in their preferred language, providing a sense of familiarity and accessibility.

Overall, effective language communication strategies stand as an essential bridge in global business, facilitating understanding, building relationships, and ultimately contributing to prosperous cross-border endeavors.

Take Full Advantage of Globalization

Despite the challenges, expanding into foreign markets remains one of the most popular ways to grow a business. However, before you can "go global" you need a strategy that addresses the language, cultural, and legal barriers in different nations. Fortunately, MotionPoint is here to help you navigate the intricacies of globalization and develop a localization strategy that ensures business success.

Ready to launch in a new market? For a limited time, take advantage of our amazing Contact MotionPoint today. BOGO offer! If you want to test out a new, foreign market like Mexican Spanish, why not try out Spanish for South American markets? If you sign up to get one language, we'll give you the second for free! Drop us a line today.

# data[].attributes.attachment_link.title
The Key Advantages and Disadvantages of Globalization

# data[].attributes.attachment_link.description
Knowing the advantages and disadvantages of globalization is crucial to expanding into new markets successfully. Learn more about the pros and cons here.

# data[].attributes.body
Mr. White - Globalization is _________ for individuals and the United States. The two reasons from the article, The Flower Industry in Colombia: The Good, the Bad and the Ugly of Globalization and my source from Harvard's business school are ____ ____. You should answer in well written paragraphs. This is a 40 point assignment that we'll look at Thursday as a class. It is due tonight. Use the class time wisely.

# data[].attributes.attachment_link.title
6 Pros and Cons of Globalization in Business to Consider

# data[].attributes.attachment_link.description
Globalization lies at the heart of what makes modern life and business possible. Here, we discuss the pros and cons of globalization in business.