The argument over the overall effect of internalization revolves around whether economic justifications pale in comparison to the associated risks. In my opinion, though globalization promises financial prosperity in the short term, its long-term repercussions are more severe for both economies and cultures.
Admittedly, globalization can be a boon to worldwide economies. That is, many businesses operating across borders not only create employment opportunities for local people but also pay significant taxes, benefiting local economies. Many Southern nations, say, China, can be an infallible testimony to the benefits of allowing for foreign enterprise, as the country has so far enjoyed a hike in GDP and better living standards for its citizens. Furthermore, this trend is bound to trigger competition in local markets, enabling people to enjoy better quality products at a reasonable cost. In the case of car manufacturing in my country, the intrusion of foreign brands into the local market has driven General Motors, a monopolist producer, to enhance its models and reduce prices to compete with other manufacturers.
However profitable globalization may appear, its economic upsides alone warrant closer scrutiny. Despite bringing cash flow to a nation, it may also trigger the bankruptcy of local businesses. By way of example, restaurant chains, say, McDonald’s and KFC, have taken over fast-food markets in developing parts of the world, building brand loyalty among customers. This allegedly leaves local restaurants with no alternative but to close down and declare bankruptcy due to losing the market to high-street names. On top of this, globalization threatens local cultures, introducing elements of alien traditions, clothing styles, and manners. For instance, the more a person is exposed to Hollywood films, the more they are likely to imitate and copy Western culture, as exemplified by the disappearance of the Indian sari in favor of suits in traditional ceremonies.
To conclude, I admit that customers and local economies stand to gain from globalization. That said, the trend poses economic ramifications for local businesses and cultures in the long run; hence, the drawbacks weigh more in importance.