The world is becoming a smaller place they say and it is because of the ease at which goods especially can be distributed throughout the world. It may or may not be a positive thing and in this essay, I will outline my opinion and the reasons for it.
There are several advantages to globalization, and the first one I would like to mention is the availability of imports. Importing products provides local residents with a wide range of products they would not otherwise have access to. Having access to exotic fruits, vegetables, and other foodstuffs that are not typically available has a positive impact on the quality of life for citizens.
Furthermore, imported commodities often come with competitive prices, benefiting customers. Goods produced by intensive farming will be cheaper to acquire from countries where labour costs are low. For example, the price of carrots which are grown in Thailand is significantly lower than the ones that are grown in Taiwan.
Nevertheless, some politicians warn that building financial dependence on other countries can be dangerous. Maintaining factories requires profitable business models. When an industry fails to be competitive it can be transferred abroad. However, if a country does this and becomes dependent on overseas production, geopolitical issues such as war or dramatic natural events can have a detrimental effect on the supply chain. The consequence will be that the goods produced will not be available. One example is the crop and fuel crisis caused by the war between Ukraine and Russia. Whereas, I believe this has been a lesson learned for many managers or executives. Business owners can balance the risks by building backup plants in multiple areas. For instance, Microsoft builds various virtual machine stations to keep its supply of network services.
In conclusion, globalization does not only improve the life of local residents but also benefits customers with relatively lower prices of products. Globalization is susceptible to the potential danger of crashes in supply chains, I believe the risk can be avoided by distributing plants geographically.