" Globalization - Advantages & Disadvantages "
The Era of Globalization" is fast becoming the preferred term for describing the current times. Just as the Depression, the Cold War Era, the Space Age, and the Roaring 20's are used to describe particular periods of history; globalization describes the political, economic, and cultural atmosphere of today.
People around the globe are more connected to each other than ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is commonplace. This phenomenon has been titled "globalization." These are major advantages of globalization
While some people think of globalization as primarily a synonym for global business, it is much more than that. The same forces that allow businesses to operate as if national borders did not exist also allow social activists, labor organizers, journalists, academics, and many others to work on a global stage.
There is a fundamental problem with globalization, which will cause international tension and trade disputes without arresting the process.
The problem is the irrational nature of the global market, coupled with the extreme vulnerability of the poorest and most marginalized in emerging economies to sudden changes in exchange, interest rates, or big investment decisions. Globalization therefore can sometimes be destabilizing.
Everyone sells when the price is already rock-bottom You can have a bizarre situation where everyone privately thinks that the currency is already too low, but continues to sell hard only because they are certain that everyone else thinks the currency still has further to fall. Rates fall through the floor in a mass wave of panic selling, as dealers dump currency in the near certain knowledge that they can buy it back at a profit in a few minutes, hours or days.
Well it has got tremendous benefits as well as its own pitfalls