Globalization is a process in which geographical distance becomes a factor of diminishing importance in the establishment and maintenance of cross-border economic, political and socio-cultural relation. In simple language we can define globalisation as coming closer of different countries of the world in the social, cultural and technological fields, especially in the economic field.
The development of the internet has made possible the organisation of business on a global scale and as a result the idea of globalisation came into existences. It has its positive aspects as well as negative. It is considered an effective measure to control the prices. The more countries trade with each other, the more their standards of living improves. Globalisation makes it possible to establish and promote a shared set of core values in the areas of labour standards, human rights and environmental practices between UN and the business community.
The efficiency of public sector in the economy of the country has been increased due to globalisation. Poverty is a blot on the face of any nation. Globalisation reduces it to a great extent. There is evidence to show that among the poorest countries, those that trade with the other nations have achieved the highest rate of growth in Income per head and the greatest decline in poverty. Inequality of Income is also reduced by globalisation. Fiscal deficit is also checked. One can see the increase in competitiveness of industrial sector due to globalisation. Thus the economy of the country grows, which is veiy much in favour of all.
But globalisation has its minus points too. It is said that globalisation has affected the environment greatly. It has led to the depletion of natural resources, the production of harmful chemicals and the destruction of organic agriculture. Under globalisation countries depend more on foreign debt which is very harmful for a nation. Not only this, it is always a danger of loss of economic sovereignty. It is also said that globalisation leads to a lowering of wages and workplace standards because generally does not allow unions to defend their workers’ right.
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Agriculture is greatly affected due to globalisation, because it is given less importance. Hence, agriculture must be exempted from global trade rules so that poor countries may pursue their own food security and sustain their farming policy.
Whatever may be the disadvantages of globalisation, but it a truth that it has brought people close to each other, which is in favour of the growth of human personality. Now it has become easier to know and understand the way of life of the other countries. We have now become the members of one big family.