Pros And Cons Of Globalisation

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Benefits & Problems of Globalisation Globalisation can be defines as the increasing economic and financial integration of economies around the world. It could refer to as the breaking down of barriers to trade, finance, investment, technology and labour around the world, as no nation is self-sufficient. Therefore, globalisation can be seen as a manipulation to economic growth, living standards, life expectancy, economic crisis, environmental outcomes, equality of nations, technology, communication, workplace standards and cultural identities in a positive or negative perspective. Firstly, economies that engage well with the international economy have consistently growth much fast than those countries that try to protect themselves. An excellent example of China, whereby the nation has broken traditional perspective of individualising and ignoring other countries, to now a globally active nation, hence, the fastest growing nation in the world. Statistically, open economies have grown at rates that are on average 2.5% points higher than the rates of growth in economies closed to the forces of globalisation. However, there are social and economic costs to globalisation. Trade liberalization rewards uncompetitive ones, it requires participating countries to undertake economic restructuring and reform. While this will bring benefits in the long term, there are dislocation costs to grapple with in the immediate term, and the social costs for those affected are high. In addition, countries which have had faster economic growth have then been able to improve living standards and reduce poverty. Indian has cut its poverty rate in half in the past two decades. China has also reduced the number of rural poor from 250 million in the 1978 to 34million in 1999. Cheaper imports due to the breakdown of barrier, caused by globalisation, also make a wider range of products

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