Globalisation Essay

Hello readers!

I wrote this essay earlier this year in Humanities. It includes a range of benefits and disadvantages of globalisation. I hope this helps you in some way.

Word count: 898

The advantages and disadvantages of globalisation

Globalisation occurs all around the world. Globalisation is the interaction between countries of the world in terms of trade. Globalisation is often referred to as a driving force for economic growth, meaning a country’s economic status may improve when engaging in trade and receiving its benefits. However, some people argue that globalisation is affecting humanity negatively, while others believe it benefits humanity greatly. Globalisation has many advantages as well as disadvantages.

To understand how globalisation affects the economy, there are some things a person would need to know beforehand, such as the stakeholders in globalisation. Stakeholders may be a person or group who have relation or connection with an issue. In this case, consumers, shareholders, the government, companies; such as Transnational Corporations, and its employees are stakeholders of globalisation. Consumers are the people who purchase the goods and services produced by companies, and they are in relation to globalisation because companies vie to persuade consumers to purchase their products. The act of purchasing goods and services is called consumption. The more consumption means the company receives more income, allowing companies to employ more workers to produce more of their products and expand their business overseas. Companies that run their business in more than one country are called Transnational Corporations or Multinational Corporations. Sometimes, people may invest in a company and in return own part of the company and its profits. These people are called shareholders and their connection to globalisation is the investment towards a company. The government relates to globalisation because they decide what to import and export in and outside of the country, in other words, the government are in charge of the trade within their country.

One very problematic situation of globalisation is competition between businesses. Globalisation allows companies to expand their businesses to other countries. This creates competition between businesses. Competition can be beneficial to consumer and problematic for smaller businesses. Competition is beneficial to consumers because it challenges businesses to win over consumers by lowering their product prices. However, smaller companies may be forced to close down when competing against bigger Transnational Corporations because Transnational Corporations have the ability to deduct their product prices lower than smaller businesses, winning over consumers and cause bankruptcy to smaller businesses. This means jobs will be lost, less competition and less variety for consumers. Without much competition, Transnational Corporations can increase their product prices. Another advantage of globalisation is that it allows national businesses to compete globally and allows them a chance to become renowned for their products. Competition is generally a good thing in globalisation; however, disadvantages may take place in countries because of it.

One of the benefits of globalisation is that it allows a country to progress economically. This type of progression is called economic growth and it measures a country’s economic status using GDP. A country gets an economic growth when producing more goods and services within the country. This is where globalisation comes into play. Companies can only expand and operate their businesses because of globalisation. If a company expands their businesses to other countries they will receive more demand for their products than franchises, because there are more people available to purchase them, whereas a franchise will only have a country’s worth of demand. The more demand there is, the more goods and services produced by these companies, and this contributes to the growth of GDP, therefore contributes to an economic growth. Globalisation can also have advantages and disadvantages to the standard of living within a country. When a company broadens their business to other countries, it creates more jobs within the country the branch operates. This is called investing in a particular country. Companies investing countries are beneficial because it not only creates jobs; it allows greater variety for consumers within that country, usually at cheaper prices, and larger income for both the company and workers. That is what measures the standard of living within a country. When the standard of living is high within a country, it means people receive greater income. This means companies are paying more money for the manufacturing of their products and may choose to manufacture their products in poor countries where labour is cheap paying. This will not only cause workers in the home country to become jobless but promote sweat shops in poor countries, and lower the standard of living in a country.

Globalisation benefits Australia greatly, as well as any other countries. Without engaging in globalisation, Australia will not be what it is today. For instance, most goods and services selling in Australia is not Australian owned. They are imported from different countries. If Australia was isolated from trading with other countries, most Australians would not have cars, electronics; such as phones and computers, foods; oranges imported from California and kiwi fruits imported from Italy, taxi service, and many other products us Australians use  every day. Not only will there be limited products and little variety of goods and services, Australia will not be as economically developed as it is today; Australia would not be as rich as it is if not for globalisation.

Globalisation can enrich a country or perish it; it can bring advantages or disadvantages to a country. What really matters is how a government engages and balances their trades with other countries, and brings solutions to ongoing problems caused by Transnational Corporations, excessive sweat shops, unemployment and whatnot.