In wake of the growing integration among the world countries, globalization has become a hit. Countries are getting intertwined as firms seek to find the cheapest locations to produce their merchandise. Moreover, the consumers are on the watch seeking for the cheapest deals in the market. They are looking for manufactures that can cater for their needs using the cheapest rates. Furthermore, firms from the developed countries are outsourcing their goods and services from industries in the developing countries. The moves pinpoint the gains that all parties are enjoying from the globalization. Firms in the developing countries have been able to increase their sale volumes by exporting goods and service to the developed nations. As a result, the profit margins have soared to new level high. However, various concerns have been raised by various players pertaining to the sustainability of globalization. The players have questioned the economic viability of globalization to the various countries. As a result, heated debates have been initiated on the modalities that require to be adopted in globalization. This paper will seek to understand various benefits arising from globalization as well as come up with necessary measures that that can be used to handle various challenges as a result of globalization.
To begin with, it is important to note that globalization has improved the overall economies of the developing countries. An ideal example is Bangladesh textile industry. The industry has continued to enjoy the luxurious British market for its products. Bangladesh textile industry is estimated to be worth $18 billion. Such figure pinpoints the magnitude of trade globalization has brought to the country. Globalization has led to the wealth creation among the industry owners as well as created employment for the workers in the industries (Economist, 2007). The workers are able to provide basic needs for their families. It is therefore evident that globalization results cannot be underestimated given that improvement in the economies of developing countries is achieved. Additionally, the respective countries governments are able to tax on the revenues hence increasing their funds meant for social amenities provision.
Furthermore, globalization has enabled citizens in developed nations to get goods and services at lower cost. The goods and services are provided from developing nations that have high population employed at a lower wage rate to provide them. These are the features that make it desirable for the citizens in the developed nations to continue getting supplies from those countries. The prices provided are competitive while the goods and services remain to be of high quality (Economist, 2007). An ideal example is the denim shorts, which are sold at seven pounds in London. Bikinis are also sold at six pounds or less. Such prices remain attractive to the rational consumers that are aiming to get optimal satisfaction from their available budget. The consumers line up at retail shops selling cheap goods of good quality in order to buy them. This is such a feature that underscores the fact that globalization is here to stay. The competitive prices offered make it difficult for the political class to pass legislations that are counterproductive to the gains made by globalization. The political class risks the consumer resistance and backlash in the name of protection of local industries.
However, despite various gains achieved through globalization, a number of issues require looking into to facilitate smooth integration of economies in the world. To begin with, consumers in the developed world are concerned on welfare of the workers employed in the developing nations to produce cheap and high quality goods. The consumers are concerned about poor working conditions provided to the workers in the developing nations. Poor working conditions include exposure to dangerous chemicals that threaten lives of workers. Health of the workers is put at risk of lowering their life expectancies while also increasing the risk of contracting dangerous diseases. The buildings in which the workers are housed fail to provide the minimum required security features, which would ensure that they are adequately protected in case of accidents. It is important to note that the workers are housed in the buildings that do not have enough exits in case of fire accidents or even earthquakes. Furthermore, the buildings lack the basic equipment meant to be used in case of tragedies. A case in point is absence of fire fighting equipment. The factory owners are required to ensure that they use part of their enormous profits to improve the workers’ welfare. It is disheartening to note that workers have continued to die under unclear circumstances in the poorly built and equipped buildings in the developing nations that in the developed nations are outsourced from. An ideal example is the factory building that collapsed in Bangladesh. It was used to produce goods for Primark store in Oxford. The building was housing numerous industries that supply the European and American markets with textile products. Collapse of the building resulted in many deaths due to absence of the requisite evacuating equipment. As a recommendation, the industries owners that are filthy should be advised to improve the workers’ welfare. Otherwise in the long run the consumers may stop consuming their products.
The other major issue arising from globalization is the issue touching on increase of unemployment and wage rates stagnating in the developing countries (Economist, 2007). Stagnation of wage rates due to globalization has hit headlines severely. Various economic thoughts have been expressed on disadvantages of globalization to the wages of the native country. Ideally in the developed nations people have claimed that outsourcing of cheaply manufactured goods and services has resulted to stagnation of the wage rates. The claims are further supported by other claims that local industries are being killed by cheap imported goods and services (Economist, 2007). However, it is such claims that inform consumers that the firms are competing ineffectively due to their high production costs. However, a remedy to the problem exists. The firms are required to cut on their costs to rival competitively on the international arena.