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Globalization - Impacts - Coggle Diagram
Globalization - Impacts
Economic
Positive
Job Opportunities: When companies make branches, they increase job opportunities for the locals in the area.
Access to larger market: It allows countries to trade with each other, allowing better quality/quantity of products and services.
Access to larger range of audience: Companies gain access to a larger audience when they spread out branches in different countries.
Negative
Unfair Competition: Companies with a better recognition are able to beat less economically developed companies (depends on areas).
Dependence: The dependence of countries on each other can give a significant impact as if the economy of a country experiences a shock or a decline, then other countries too will be affected.
Labour: Companies may choose to pay people from their own countries more than the people in the domestic country.
Social
Positive
Spread of Information: It allows information (the information can be about anything like pandemics or social issues) to be spread amongst the countries quick.
Better Health: Globalization helps to spread medical treatments and medications to health issues such as diseases or viruses. (COVID-19 can be a very suitable example)
Communication: It enhances communication between countries, making it easier for the countries to communicate.
Negative
Loss of Skilled Labour: People can leave their home country in a search for better job opportunities resulting in the loss of skilled labour.
Loneliness: The fast changes because of globalization sometimes make people feel like they're not connected to their communities or each other.
Exploitation of Labour: It can lead to exploitation of labour as companies from different countries can go to different countries in the search for cheaper labour.
Cultural
Positive
Access to Cultural Information: Due to the advancement in technology, people can research and learn about different cultures.
-
Mix of Cultural Ideas: Mixing of cultural ideas can lead to the development of new ideas, and can bring an increase towards the global trends as the new ideas can be beneficial towards the revolving world.
Negative
Loss of Cultural Identity: Due to the introduction of modern trends, cultural knowledge/identity has been loosing recognition.
Half-Information about a Culture: Many cultures can be misunderstood by people from different cultures, and can be practiced in a different and non-respectful way (in comparison to how they are supposed to be practiced).
Dominance: One culture can be heavily influenced by another culture, leading to more characteristics of one culture than the other cultures.
All of these factors are interconnected with one another as any change in one factor affects the other factors as well. Any change in the economy affects both the cultural and social factors, changes in the social factor are determined by both cultural and economical factors, and lastly, economic changes are influenced by changes in cultural globalization.