In contemporary era, nations have been gripped by numerous issues, including the financial imbalance between well-developed and emerging countries. Some people claim that a growing globalization dramatically intensifies economical inequality between rich and poor nations, while others opine that globalization should close this gap in the long run. This essay will shed light on both sides of the view and provide subjective evidence to prove the arguments.
To start with, the great numbers of rationales are being discussed in favour of the nature of globalization and boons versus drawbacks of this phenomenon. Personally, I assume that the driving force behind globalization must be laying in corporate business level. Obviously, DNA of any business is to decrease the costs and increase the sales. It goes without saying that huge international corporations, having a full range of resources, have been running their business in the same way. For instance, they establish the manufactures in the emerging countries, where the labor force costs them less, and sell their goods and services trying to reach every customer worldwide.
The major reason why many people are blaming globalization for financial inequality is that local businesses in emerging markets are almost unable to compete with international giant companies such as Coca-Cola, Apple, Procter&Gamble. For example, these corporations are able to dump the prices on the local markets just to eliminate any competitors and many of them have been using this approach to grab the whole market and dictate the rules after. Additionally, the powerful countries use a various economic policies and trade agreements to get benefits for their international businesses and limit the access to their population for foreign companies. Evidently, this approach extremely contradicts the unfettered competition and dramatically creates unfair advantages for the companies, based in a few but highly powerful countries.
On the other hand, there are tangible advantages, which has been created by globalization. The growing globalization has been accelerating the technological progress. For example, a computer’s technology leap would not have been possible without international development and manufacturing of chips for the computers, because in that period it made financial sense to invest in its development only in case it would be used for all computers in the world. Furthermore, the placement of production in the developing countries creates the additional work vacancies and attracts investments in these countries. It might be a great incentive to the local economy. China, Turkey and various other Asian countries are prime examples of positive influence in the reducing the gap between reach and poor nations.
To conclude, the truth is always somewhere in between. As I have mentioned above, I strongly believe that globalization has crucial influence on the gap between developed and developing countries in positive and negative ways. However, the global society must find the solution to save the progress and avoid unfair competition, trial and error.