Integration of a nation's economy with the world economy benefits by way of enhancing the employment opportunities and providing a platform for the distribution of surplus production to others. However, it brings some negative consequences also in the form of widening the gaps among developed and developing economies.
One of the significant benefits of globalisation is the increase in employment levels in an economy. Globalisation has allowed a free trade among different economies. As a result, the industries gets a surety that the goods produced by them, will be sold completely, if not in their domestic market, then in the international markets. Hence, they do not hesitate to start new companies, as well as to raise their existing production capacity. Such efforts automatically lead to a higher demand of the manpower. In addition, the business houses in the developing countries can outsource the latest technical equipments from technically sound countries that helps in enhancing their efficiency. Finally, it promotes a healthy competition among different economies, which boosts them to make the best possible use of the resources available to them.
Globalisation has its own drawbacks too. Firstly, the developed countries, being in a position to use updated technical knowledge, can manufacture products at a low cost. Therefore, they are able to fill the International market with their production, leaving no scope for the developing countries. Such a situation widens the gap among developed and less developed economies, which eventually leads to a dominance of a few economies in the global market. China, for instance, is dominant in providing a variety of goods at cheaper rates in the world. This dominance is harmful in the long run.
To conclude, I consider that globalisation benefits the world’s economies by helping them in enhancing job avenues and enabling them to use modern technology. However, the negative aspects of it in the form of dominance of a few economies in the global market cannot be ignored.
Integration of a nation's
economy
with the world
economy
benefits by way of enhancing the employment opportunities and providing a platform for the distribution of surplus production to others.
However
, it brings
some
negative
consequences
also
in the form of widening the gaps among
developed
and developing economies.
One of the significant benefits of
globalisation
is the increase in employment levels in an
economy
.
Globalisation
has
allowed
a free trade among
different
economies
.
As a result
, the industries
gets
a surety that the
goods
produced by them, will
be sold
completely, if not in their domestic
market
, then in the international markets.
Hence
, they do not hesitate to
start
new
companies
,
as well
as to raise their existing production capacity. Such efforts
automatically
lead to a higher demand of the manpower.
In addition
, the business
houses
in the developing
countries
can outsource the latest technical equipments from
technically
sound
countries
that
helps
in enhancing their efficiency.
Finally
, it promotes a healthy competition among
different
economies
, which boosts them to
make
the best possible
use
of the resources available to them.
Globalisation
has its
own
drawbacks too.
Firstly
, the
developed
countries
, being in a position to
use
updated technical knowledge, can manufacture products at a low cost.
Therefore
, they are able to fill the International
market
with their production, leaving no scope for the developing
countries
. Such a situation widens the gap among
developed
and less
developed
economies
, which
eventually
leads to a dominance of a few
economies
in the global
market
. China,
for instance
, is dominant in providing a variety of
goods
at cheaper rates in the world. This dominance is harmful in the long run.
To conclude
, I consider that
globalisation
benefits the world’s
economies
by helping them in enhancing job avenues and enabling them to
use
modern technology.
However
, the
negative
aspects of it in the form of dominance of a few
economies
in the global
market
cannot be
ignored
.