The world has become a far “smaller” place than it was only 50 years ago.
It’s now easier and faster than ever to communicate with others that are located on the other side of the world. To actually see them face to face.
All the same, even though we live in a “smaller” world, we are, arguably so, more divided than ever.
More than 200 countries have enforced borders. It’s not possible to venture across these borders unless a valid form of identification is shown – normally a passport.
And, for those that forgo the rules, they risk deportation or worse yet.
In this article, when we question “globalization,” we are asking: If every border were to go away, what would the world look like?
Here are the advantages and disadvantages of globalization.
Advantages of Globalization
1 Globalization permits open communication
If borders were to be removed globally, communication becomes far easier.
Arguably, rather than those that come from a different country being regarded as aliens, they would be seen (and treated) as humans instead.
Globalization could make our world a more tolerant and open place.
2 No more exploitation of labor
Many of the cheap goods we purchase are created through exploitation of labor.
Now, to you and me, we do, indeed, want access to cheap goods.
However, at what cost?
Free labor in the form of prisoners being forced to work on creating cheap goods. Free or very cheap labor in the form of children. Very cheap labor in the form of third-world-country exploitation of the local peoples. Free or very cheap labor because of human trafficking.
What’s more is that “workers” are further exploited, given that they are forced to work in working conditions that are unsafe.
They may have entered a country illegally, in which case, they are unable to report wrongdoings of their employers.
They may be exploited within their own country simply through a desperation to be able to afford to feed their families. The unscrupulous among us – and there are plenty of them – are very quick to take full advantage.
Through globalization, doing business could prove to be far cheaper than now.
In which case, there would be far less demand for cheap goods and services by way of exploitation.
3 The encouragement of free trade
With no borders, the consumer is able to purchase items from around the globe at a lesser cost than today.
Less barriers = less sales taxes, less subsidies, less tariffs.
There would be no individual nations, so there would be no restrictions.
Free trade would be available to all.
4 Limitations on abuse
There are many countries that have a track record of abusing their own peoples and abusing foreign nationals.
Through globalization, it would be far easier to implement accountability.
Human rights issues would greatly reduce.
5 Additional trade = more job availability
With fewer worldwide barriers comes cheaper goods and services.
With cheaper goods and services comes more consumer investment.
With more investment in goods and services comes a need for more labor.
6 No more tax havens
It’s commonplace that wealthy organizations and wealthy individuals place their funds inside banking institutions in countries that offer generous tax laws.
In essence, such countries and banking institutions are tax havens.
A tax haven is a place or an establishment which permits investors to pay far less tax than otherwise they would.
This awards the wealthy.
What’s more, the existence of tax havens means that governments have less funds available to invest in healthcare, education, infrastructure, etc.
Through globalization there would be no more tax havens, given that borders between countries would no longer exist.
7 Global poverty would be reduced
In many developing countries poverty features very high on the list of, erm… “problems.”
Poverty in such countries often exists, at least in part, due to a high level of corruption.
Globalization would greatly reduce corruption at all levels from governmental down.
8 Elimination of currency manipulation
Many governments manipulate their own currencies as a way of benefiting their own economy.
Even the big three currencies, the dollar, the euro, and the UK pound sterling, are manipulated.
Globalization would dictate that there would be no requirement to manipulate currencies, particularly so if there was only a singular currency.
Thus, the consumer is the one to benefit.
9 Healthier distribution of resources
According to Oxfam, currently the world produces 17 percent more food than is required – an excess of 17 percent.
Annually, around the world, there are many thousands of people that die because of hunger.
There are plenty enough resources, so why are there so many people starving?
Corruption is a leading factor.
Eliminating borders would likely reduce corruption, particularly so in third-world countries.
Disadvantages of Globalization
1 Worker exploitation on the rise?
If globalization were implemented, there may be a race to reduce wages in many job sectors.
In this scenario, many households would earn less, which means there would be an increased demand for lower prices.
In order to meet this demand, there could be a rise in prison-based labor, and a reduction overall in safety standards in the work place.
2 Job transfer to areas that have lower costs
While there likely would be a reduction in unemployment, through globalization, most jobs would be created in areas where the cost of labor is the cheapest.
Today, many businesses employ foreign labor in foreign countries. Take, for example, the call centers in countries such as India and Philippines.
However, in a world with no borders, far more organizations would take advantage of the new opportunity.
This would lead to high unemployment in some countries, and zero unemployment in others.
3 “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men…“
A phrase coined by Lord Acton, the 19th century politician.
The meaning of the phrase?
When a single person possess all the power over a single institution, that power has a tendency to corrupt them.
Globalization would potentially lead to this scenario.
4 Wealthier areas always will consume more resources
The wealthiest corporations and the wealthiest individuals would likely benefit most from globalization.
Furthermore, the wealthiest areas would also likely benefit the most from globalization.
The argument in favor of this would be that because a particular area produces more, it needs more.
Even today, the G20 nations – the 20 most advanced countries – consume no less than 86 percent of global resources (reference: United Nations Development Program).
This scenario, in the event of globalization, would likely be exacerbated.
5 A culture of fear
Owners of businesses globally, in the event of globalization, could control their employees through a culture of fear.
There would be a constant threat that jobs would be lost because a business owner wished to employ a workforce in a cheaper area.
That same threat exists today, but the threat would be magnified if globalization were to occur.
With such a threat hanging over the heads of employees, they would be far easier to manipulate.
6 Losing borders equates to lost identity?
Nationality, our ethnicity, in addition to our family background all come into how we have a tendency to identify ourselves.
But how about in a borderless world? Would our nationalities merge into our ethnicity?
To some degree, larger countries already experience this issue.
A loss of culture would mean a loss for society in general.
7 Globalization would lead to more disease
Communicable diseases are less of a problem when people remain within their own areas.
With a borderless world comes far more travel.
With far more travel, as we are already familiar, comes an increased threat of new diseases being spread around the world. And in a very short space of time.
8 Political system whereby it’s the largest and the wealthiest that posses all the power
It could be argued that this is the scenario we already face – more so in developing countries.
However, this scenario would be magnified in a world without borders. Thereby augmenting social inequality, which is already a problem but on a smaller scale.
9 Elimination of nations
Currently, the largest and most powerful countries have most of the power on a global scale.
With globalization, there’s risk that some of the smaller, less powerful nations would be completely eliminated.
10 The poor need help
Developed countries offer the very poorest in society some kind of safety net so they can survive.
That’s inclusive of housing provision, government welfare money, free healthcare, and various alternative benefits.
In a world without borders, there’s a risk it could all vanish.
And that’s because there’s so much poverty in the world.
How could it be possible to have a quality safety net in place when there are so many people to cater to?
11 Environmental impact
Two scenarios:
a) More jobs created through globalization. Meaning better economic circumstances for most. Meaning greater amount of pollution.
b) Worse economic circumstances for most because of reduced wages. Meaning greater amount of pollution because the services we can rely on now (for example, waste disposal) would no longer exist in many areas.
With more pollution comes more disease (causing huge impact on the economy) and global warming.
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