Economic globalization, the rising of interconnectedness and interdependence of economies across the globe has indeed brought about various effects on communities, countries, and the world as a whole. Although it has contributed to improvement in standards of living for many, it also has generated drawbacks. This essay will discuss both positive and negative influences of globalization and provide a logical conclusion.
On the one hand, the two main positive influences of the problems include increasing economic growth and job creation. Firstly, globalization has facilitated greater trade and investment, leading to increasing economic growth in several countries. As an example, Vietnam is a country that has gained rapid economic growth through the process of globalization. Vietnam has actively participated in the agreement, signed free trade agreements, and attracted foreign investment. This helped Vietnam’s economy grow remarkably, GDP growth, and significantly reduce poverty. Therefore, through opening the global market and strengthening international economic relations, many countries have achieved positive growth and improved the living standards of their communities. Secondly, one of the positive effects is that increased trade and investment foreign can lead to the creation of new jobs, especially in industries that benefit from the global market expansion such as manufacturing and export industry, tourism and service industry, and so on. To illustrate, in 2018, a corporation in China won a bid and was licensed to build a bridge in Croatia. This was an extremely important project for Croatia at that time. Thanks to this project, jobs have been created for thousands of people in China and Croatia. Thus, strengthening the global interconnectedness through the process of globalization can result in generating levels of jobs and different industries.
On the other hand, besides the positive effects, economic globalization also has negative consequences. First of all, globalization raises income inequality within countries, the differences in income between individuals, families, and countries. For instance, there are differences in income level between countries, developed countries have higher per capita income than developing countries. This is shown through indicators like GDP per capita. Nextly, while the global market expansion has generated new jobs, it also leads to job displacement. The status of certain workers who are eliminated and reduced due to fluctuation in the economy, industry, and changes in technology. Lastly, another negative impact is that increased trade and production can result in environmental degradation, as industries prioritize profits over sustainability. For example, burning fossil fuel produces greenhouse gas emissions and contributes to climate changes. Beside, the process of fossil fuel exploitation and production can also have effects on the environment.
To sum up, despite economic globalization has contributed to increased living standards, job creation and economic growth, it has also created negative consequences such as income inequality, job displacement, and environmental impacts. The impact of globalization differences across countries, communities, and addressing downsides requires thoughtful policies and international cooperation.