Globalization as a positive phenomenon


Globalization has been defined using different perspectives, but all the definitions revolve around the global interconnectedness of economic and political relationships and computer networks. Globalization primarily entails the manner in which industrial and commercial organizations relate with each other irrespective of their locations in the world; the interaction between these institutions has no geographical limitation. Other scholars view globalization as the integration of nation-states markets and technologies to a level which has never been seen before whereby the national and local administrations surrender control policy to global bodies especially the multinational corporations which also includes the nongovernmental global, or regional agencies such as the international monetary fund, the world bank among others. The paper in this stance seeks to evaluate the question of whether globalization is a positive phenomenon, and the reasons some factions protest against it. The paper in this stance will work with the view that globalization is a good thing.

Theories of globalization

The theory of Marxism

Marxism is primarily concerned with production modes and social exploitation of the labor force through social emancipation and unjust distribution through the employment of capitalist ideas. Marx expected that globalization would develop by holding that capital in its very nature expands beyond spatial barriers to conquer the earth in its entirety. Marx postulates that globalization takes place because global connectivity fosters business opportunities of making profits and accumulation of the accrued surplus (Vahlne & Jonsson, 2017).

The liberalism theory

Liberalism perceives globalization as a form of modernization which opens more markets. At elementary levels, globalization comes about because of people’s desires for political liberty and economic welfare. Thus, global connectivity through globalization from people’s hopes to maximize wealth and exercise their fundamental freedoms and rights. These forces finally link people from all over the world (Vahlne & Jonsson, 2017).

The positives of globalization

Globalization of markets

Many emerging economies in the developing world came as a result of privatization of state-owned enterprises, and these organizations are working hard to raise consumer demand by expanding and broadening their value chain to the global markets. The effect of the effect of globalization on business management is perceived through a rapid increase in the number of transactions across the national boundaries (Vahlne & Jonsson, 2017). Many enterprises are developing their wide footprint into the international scale because it reduces the cost of production and helps business to enjoy economies of scale which helps in maintaining their competitiveness (Vahlne & Jonsson, 2017).

The growth of globalization resulted in the emergence of multinational corporations (MNCs).

MNCs occupy a central position in globalization as seen through the expansion of foreign direct investments (FDIs) (Vahlne & Jonsson, 2017). MNCs have the highest concentration in the western world which limited their growth, and the advent of globalization offered an opportunity for them to venture into the developing countries where competition is minimal, and they enjoy economies of scale. The expansion of MNCs opens employment opportunities in the developing world thus improving the living standards of people who could have stayed jobless without FDIs by these global firms (Vahlne & Jonsson, 2017).

Cross-cultural management

Globalization offers an excellent opportunity for wealthy and the elite people to interact within the western culture. The western ways of life are often perceived as affluent and superior; the elites in the community embrace them through their products and behavior to impress other people. In the present setup, the western ways of life characterize global commerce (Steger, 2017).

The United States seems to have a tremendous impact on other countries.

Currently, the world has a strong cultural force. The popular consumer culture of the dominant economic West is massively influencing and transforming other regions, societies, and nations (Steger, 2017). Further, such standpoints mean that consumer-oriented promotions, mass media, and technological change work hand in hand to remodel whatever they come across. Even the ideas and attitudes about technology, religion, and society are influenced by cultural diffusion brought forth by globalization (Steger, 2017).

Foreign trade

It is through globalization that international business is expanding the world over. The products which only existed in the developed world can now be found in other parts, thanks to the advent of globalization. Globalization offers a chance for the developed world to sell their goods in the rest of the world (Steger, 2017). Different nations engage in international trade where they export and import goods all over the world. The countries which sell their products to others have a comparative advantage in the production of such commodities. Some organizations have been established to manage international commerce so that there is fair trade between countries (Steger, 2017). Global trade institutions emerged as powerful international bodies with the ability to influence individual national governments to follow rules of international trade, tariffs and taxes, regulations on subsidies, copyrights, and international business laws. Thus, no country can break such rules without facing the consequences (Steger, 2017).

Through globalization, the number of countries involved and dependent on trade, financial markets, and foreign capital increased tremendously (Steger, 2017).

The Ricardian trade theories projected that specialization of labor and capital intensive commodities would bridge the massive wage gaps between rich and emerging nations, that is the developed and developing world sparing the former from massive immigration of labor (Steger, 2017).

Resource imperative

The developed world needs human and natural resources from the developing world, while the developing countries need brainpower, technology, and capital from their developed counterparts. The economies of the developed countries are hugely dependent on the human and natural resources of the developing world (Rosenmann, Reese & Cameron, 2016).


Globalization has improved the quality of products manufactured by firms because there is massive global competition. Thus, firms are compelled to produce the best products to maintain their markets. The "customer is the king" view, and customer service approach to production have resulted in the betterment of the quality of products manufactured and the services accorded to people (Rosenmann, Reese & Cameron, 2016). The domestic companies are forced to fight the stiff competition from foreign firms; they are forced to raise their standards and levels of customer satisfaction to remain in the market. Further, when an international brand enters the market of a new country, it comes with the good of its name which it strives to maintain by offering superior products and services. This creates competition, and thus the local competitors are forced to react in a 'survival for the fittest situation' (Rosenmann, Reese & Cameron, 2016).


Many benefits of globalization culture are many. Not all good cultural practices were born in one place. The contemporary world is a combination of many cultures coming together. People from one culture tend to learn from certain best practices from other cultures and pick them up (McGinnis, 2015). The communities have become large as they have welcomed people from other cultures and created a new set of beliefs and attitudes. Different languages, customs, and cooking styles have spread the world over because of globalization. The same case applies to musical styles, movies and other types of art (McGinnis, 2015).

The legal effects

The broad media coverage of human rights violations draws global attention. The result of it becomes respect and improvement of human rights. Further, gone are the days when criminals could commit crimes and flee to seek asylum in other countries. In the contemporary setup, there are international criminal courts where criminals running away from their countries are charged according to the crimes they have committed (Martell, 2016). Further, because of globalization, there is an understanding between the security agencies and police of different countries who join hands to curb global crimes such as terrorism. Therefore, it is now possible to catch criminals irrespective of their citizenship or where they choose to hide; undoubtedly, this is one of the most significant benefits of globalization (Martell, 2016).

Why some factions protest against globalization

Job insecurity

In the developed world, the citizens are no longer sure of the security of their jobs. They are losing employment. Companies in the developed world are outsourcing manufacturing duties and are offering white-collar jobs from the developing world which means that the job opportunities in these countries are reducing fast (Crane & Matten, 2016). The jobs are outsourced to countries where the cost of production is low because of low wages and lower prices of inputs. The jobs are outsourced to countries such as China and India. On the other hand, companies in developing countries are losing business because they cannot compete with MNCs who have to employ superior technologies and have a large production capacity which makes them produce efficiently and enjoy economies which local companies do not have. Exploitation of the labor force is another adverse effect of globalization. MNCs are ignoring labor regulations to produce cheap goods (Crane & Matten, 2016).

Price fluctuations

The prices of goods are no longer stable; they are changing every now and again. The reason is that of heavy competition in the market where some countries can produce at a much lower cost to make their goods much cheaper than the ones coming from the countries where production costs are high (Beck, 2018). Thus, for some companies mainly from the developed countries to maintain their customers, they are compelled to cut down the selling price of their commodities. This is an adverse effect to them because it reduces the capacity to maintain social welfare in their countries (Beck, 2018).


The paper in this stance sought to establish the positive effects of globalization and the reasons it has fierce opposition from some quotas. Globalization has been able to open more markets, promoted the economies of the developing world and weakening those of the developed economies because manufacturers prefer outsourcing production functions to the developing nations where the production costs are minimal. Further, the fierce competition in the market brought about by globalization has proven beneficial to the consumers because local manufacturers are forced to produce high-quality products which they sell at lower costs compared to the past; this is because of competition brought forth by foreign companies.


Beck, U. (2018). What is globalization?. John Wiley " Sons.

Crane, A., " Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Martell, L. (2016). The sociology of globalization. John Wiley " Sons.

McGinnis, J. L. (2015). Bahira Sherif Trask. Women, Work, and Globalization: Challenges and Opportunities. New York, NY: Routledge, 2014, 298 pages, $49.95 paperback. Personnel Psychology, 68(2), 456-458.

Rosenmann, A., Reese, G., " Cameron, J. E. (2016). Social identities in a globalized world: Challenges and opportunities for collective action. Perspectives on Psychological Science, 11(2), 202-221.

Steger, M. B. (2017). Globalization: A very short introduction(Vol. 86). Oxford University Press.

Vahlne, J. E., " Jonsson, A. (2017). Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA. International Business Review, 26(1), 57-70.

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