Affects of Globalization

Thanks to globalization. Now the world has become smaller and smaller. Globalization has tremendous impact on the world’s economy. Not all the impacts are positive some impacts are negative too.



Due to globalization, market is more expanded for businesses. So products can be easily marketed and distributed all over the world. Especially now due to low manufacturing cost, a lot of business man have opened factories in China. And manufactured products are than shipped all over the world. This policy has dramatically increased profit margin for businesses all over the world. Thus, improving economy of many counties. Also because of the affordable price of the products customers’ purchasing power is also increased significantly. Nevertheless, if the same product is manufactured in USA due to high labor cost, middle class customers simply could not afford a purchase.



On the other hand globalizations are to be blamed for unhealthy competition in world’s economy now. In order to sustain in market today many companies are making low cost products. They are using very cheap raw materials, unprofessional and untrained staffs. Many name brand companies are manufacturing very cheap products. Instead of keeping up the standard of the original products they have lowered the standard. Such as, once known as prestigious brands e.g. guess, coach, which is unaffordable to middle class has now became affordable and less durable too at the same time.



Thus globalization is has impacted our life is several ways it. It has impacted our social, cultural, and financial parts of our lives. But we should not lose our identity as an individual, as a community and as a country.