What are the pros and cons of globalization

Down below in explanation

Explanation:

What Are the Pros of Globalization?

1. It encourages free trade.

Without borders in place, consumers can purchase items from anywhere in the world at a reduced cost. There would be fewer barriers in place, like tariffs, sales taxes, or subsidies because there wouldn't be nations in place that could add restrictions. From 2008-2015, the Washington Post reported that the G20 nations placed more than 1,200 different restrictions on imports and exports. That goes away with true globalization, which means free trade will be encouraged.

2. More trade means the potential for more jobs.

When there are fewer barriers in place to purchase items, then consumers will generally purchase more things. This creates the foundation that businesses need to create more jobs. Globalization with free trade increases competition as well, which means innovation must be part of the equation. Consumers benefit from that innovation with lower pricing, which means more products can be purchased, and that can stimulate further growth.

3. It eliminates currency manipulation.

Many countries today manipulate their currencies to benefit their local economy. Even the three "primary" currencies of the world do this: the pound, the euro, and the dollar. Donald Trump announced in 2017 that the dollar was becoming "too strong," which is a statement that was meant to potentially weaken the dollar. With globalization, countries no longer have a need to manipulate their currencies to obtain price advantages, so it is the consumer who can benefit from the outcome.

4. Open borders mean more opportunities to develop poor areas of the world.

There are many nations in the world today that are in a state of entry-level industrialization. Poverty is a feature in many of these developing countries. Through the process of globalization, the removal of borders allows the people in these areas to experience greater prosperity because each area gains the ability to access what they need. There are fewer opportunities to suppress people at the expense of others so only a few can benefit from success.

1. It generally makes the rich become rich and the poor to become mired in poverty.

Globalization is supposed to be about free trade, but the reality of the situation is that only true globalization which removes national borders can do this. Under our current planetary structure, there are value-added taxes that can exceed 20% for some countries, which limits the access that people have to imported products. This means the rich can access what they want or need to become richer, but the poor get trapped in poverty because they don't have the means to access success.

2. Jobs get transferred to lower-cost areas.

Jobs can be created through globalism, but they tend to be created in the areas where labor costs are the cheapest. Even in a world that is completely without borders, the cost of doing business is going to be cheaper in some areas than in others. Businesses will transfer or create jobs in these low-cost areas so they can remain competitive. Instead of it becoming a race to the top, many people in a borderless world could experience a race to the bottom instead.

3. Globalism creates a culture of fear.

Even in jobs aren't exported to cheaper areas of the planet, business owners can hold the threat of doing so over the heads of their current workers to gain salary concessions. It creates an environment where workers, especially those who would be in the current Middle Class around the world, would be unable to have any leverage when it came to their take-home pay or working conditions. People would be forced to either freelance their skills, create their own business, or accept the race to the bottom of the pay scale to keep their employment.

4. It creates a political system where the biggest and the richest have influence.

In many developed countries today, there are large companies, lobbyists, and wealthy individuals who are highly involved in politics so that they can have a favorable set of regulations and laws. If national borders were to disappear, this issue would become a global problem. The largest businesses and wealthiest people could hoard global resources for themselves through whatever government was put into place, enhancing the social inequalities that are already being seen on smaller scales.