Globalization is one of the most significant trends of the modern world. It affects all countries and preconditions the radical change in the international discourse. States acquire new options to interact at all levels, such as cultural, technological, and economic ones. However, the scope of the process and its significant effects trigger vigorous discussion whether globalization promotes only positive consequences and should be cultivated in the future. Regardless of the existence of multiple opinions on the given problem, using the examples of India and the USA, it is possible to prove that the positive impacts of globalization prove its critical importance for the international society today.
Globalization has a strong positive influence on the industrial sector of the state. For instance, India’s government opened the state for foreign investors in the 1990s (“Globalization & Its Impact on Indian Economy”). It increased the speed of the economy’s growth because of the emergence of multiple investors and the fast growths of various sectors, such as steel, textile, pharmaceutical, retail, tourism (“Globalization & Its Impact on Indian Economy”). The successful transformation of these central spheres created the basis for the stable economic development of India and its becoming one of the strongest developing nations with the opportunities to transform into a world’s leader (Ritzer and Dean 91). In such a way, globalization served as the stimulus for the countries’ evolution.
However, the rise of these industries under the impact of foreign investment is often criticized. First of all, it results in the emergence of jobs concentrated in the service sector or demanding low education and qualification levels (B2B). It means that the economy’s rise is not supported by the corresponding development of the country’s infrastructure and local institutions (B2B). Moreover, India is often viewed as a strategically important area because of the outsourcing opportunities it offers. The lower wages and social packages attract foreign investors (Ritzer and Dean 91). These facts show that globalization might transform India into a raw-material base with unqualified individuals working in worse conditions than in other states.
Nevertheless, most of such fears can be refuted by using facts peculiar to India at the moment. Regardless of substantial foreign investment and the fast rise of the service sphere, the country also focuses on developing its own infrastructure and institutions vital for its further evolution. It invests money generated due to the globalization trends in national projects. For instance, the pharmaceutical sphere of India demonstrates serious progress using local specialists (B2B). Moreover, it supports technologies and invests in innovating its economy using creative approaches (B2B). In such a way, globalization helps nations interact and evolve by using new opportunities and markets.
The USA and the dominance of its corporations are other examples proving the positive impact of globalization on the economy. First of all, in the 1970s, the state became one of the most active international actors and gained about 11%-19% of its annual GPD (Kose et al. 4). Currently, the USA remains one of the global leaders with international corporations, such as Apple, operating in numerous countries across the globe (Kose et al. 4). They cooperate with other countries placing their facilities there and hiring local workforce and specialists. Moreover, they invest in the development of local infrastructures following sustainability models and principles (Kose et al. 4). In such a way, the example of the USA proves the beneficial nature of globalization.
Thus, another opinion state that the dominance of global corporations and their activity in other states might precondition the reduced competitiveness in the market and the emergence of multiple adverse results. For instance, one of the negative effects is the disproportional distribution of funds and wealth. Globalization has led to the accumulation of almost 95% of all funds in the hands of 1% of individuals or corporations (Steger 99). It can also be seen in the growing gap between middle and privileged classes (Steger 99). For this reason, the further cultivation of globalization might precondition the aggravation of the situation and its becoming more serious.
However, the relevance of this argument can be doubted. On the one hand, the dominance of giant international corporations is one of the trends of modern society, and the distribution of funds remains one of the relevant concerns. However, it cannot be linked to the progress of globalization and its dominance, as it is a component of the market economy (Kose et al. 4). At the same time, paying taxes and launching new projects, firms create the basis for further improvement and the better health of the nation (Steger 78). Jobs and career opportunities are vital elements of communities’ work, meaning that the contribution of such brands should not be doubted.
Altogether, globalization is one of the most important trends of the modern world. It shapes the evolution of states and their relations with other nations. Regardless of multiple claims that there are numerous negative effects that should be taken into account and discussed, the USA and India’s examples show that the improved access to global markets and the opportunity to cooperate with other partners from different parts of the globe provides multiple benefits and should not be disregarded.
B2B. “Impact of Globalisation on India.” Civilsdaily, 2017, Web.
“Globalization & Its Impact on Indian Economy: Developments and Challenges.” Legal Service India, Web.
Kose, Ayhan et al. “The Global Role of the U.S. Economy: Linkages, Policies and Spillovers.” ECONSTOR, 2017, Web.
Ritzer, George and Paul Dean. Globalization: The Essentials. 2nd ed., Wiley-Blackwell, 2019.
Steger, Manfred. Globalization: A Very Short Introduction. 4th ed., Oxford University Press, 2017.