Globalisation is beneficial in some ways and harmful in others. The following are some of the beneficial aspects of globalisation.
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1. Globalisation enables nations to work together to fight deadly diseases, protect the environment, utilise resources properly, draw up trade agreements which are fair to all, and develop backward regions.
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2. Globalisation removes import restrictions. This allows foreign goods to enter a country more easily. To compete with foreign manufacturers, the country’s industries have to produce goods of .better quality and relatively lower price. Consumers are benefited by the availability of better goods and by the fall in prices.
3. As a result of globalisation, many large business houses have set up units in several countries. These business houses, called multinational corporations (MNCs), have generated employment in many countries.
Some of the disadvantages of globalisation are as follows:
1. Globalisation allows advanced and rich countries to take advantage of the cheap labour, abundant natural resources and large markets of poorer and less advanced countries.
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This widens the gap between rich and poor nations. Besides, the environment suffers due to large-scale resource depletion and the setting up of polluting industries all over the world.
2. Globalisation allows rich nations to control the international monetary organisations, and hence, the economies of poorer countries.
3. Globalisation enables manufacturers to transfer production units from advanced countries to less advanced countries, where labour is cheap. While this reduces costs and increases profits for the manufacturers, it results in the loss of jobs in advanced countries.
4. Globalisation enables a skilled worker to earn a high salary and avail of more job opportunities, both in his own country and abroad. However, it reduces the total number of jobs available, as efficiency demands the replacement of human labour by machines.
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5. Globalisation makes survival difficult for small manufacturers and industries, which can thrive only in the absence of foreign competition.
6. The terms of globalised trade often force a country to import certain items even if it is self-sufficient in those items.
As a member of the UN and various other international organisations, India has felt the effects of globalisation. The country participates actively in international trade and cultural exchange.
Globalisation has greatly helped in improving communication, health care and the production of consumer goods in India by making the import of technology and equipment easier.
MNCs have set up units in India and generated employment, at least for skilled workers. However, globalisation has hardly benefited agriculture, which still supports more than 70 per cent of India’s population.