Globalization: Benefits and Drawbacks in the Goods and Services Sector

Benefits of Globalization

• Increased Quality: Companies must provide better goods and services to attract consumers.
• Lower Prices: Producers must price competitively to remain in the market.
• Reduced Cultural Barriers: Movement between countries fosters tolerance and openness.

Drawbacks of Globalization

• Exploitation: Companies may relocate factories to countries with cheaper labor, leading to exploitation (e.g., Adidas factory in Cambodia).
• Job Insecurity: Globalization increases competition for jobs, leading to job insecurity and lower wages.
• Dominance of Rich Countries: Globalization primarily benefits developed countries at the expense of developing countries.

Conclusion

Globalization can be beneficial if human rights are respected and product quality is maintained. However, it is crucial to address the negative consequences, such as exploitation and job insecurity, to ensure a fair and equitable global economy.