Some Advantages:
Economics and Labor:
- Further development and economic growth worldwide.
- New local jobs are created.
- Opportunities for development and greater economic
growth and employment, if each country uses its comparative advantages.
- Workers and companies have opportunities to settle
in other countries. - Ability to make investments in other economies.
- Further information on economic exchanges.
- Awesome World Supply of goods and services,
which contributes to improving the quality of life of citizens.
Technology: - spectacular technological development.
Social and Cultural Rights: - Opportunities to
diversify and enrich the customs.
- Development of education and its methods, which has
created distance education.
Policies: - Actions by the IDB, WB, and multilateral
agencies to fund social projects.
- Emergence of new actors: NGOs.
Some Disadvantages:
Greater economic inequality between developed and
developing countries due to concentration of capital in developed countries
(external capital accumulation).
Economic inequality within nations as globalization
benefits big and powerful companies.
In developed countries will increase unemployment and
poverty because large companies migrate to other places in search of cheap
labor and raw materials.
Greater economic interference by developed countries
to underdeveloped countries or developing.
Degradation of the environment for the exploitation of
resources.
Less chance of competing with large multinational
companies.
Major capital flight because when multinationals
choose, move to other countries that offer better advantages in production.
1. Increase in administrative expenses: Globalization
can cause substantial administrative expenses increased coordination and the
need to inform, and even staff augmentation. Globalization can also reduce the
effectiveness of management in each country if excessive centralization
undermines local motivation and lowers morale. In addition, each of the drivers
of the overall strategy has particular disadvantages.
They are due to increased coordination and the need to
inform and even increased personnel, and it can reduce the efficiency or
effectiveness of management in each country if excessive centralization
undermines local motivation and lowers morale.
2. Less sensitivity to customer needs: The
standardization of products can result in a product that does not leave fully
satisfied customers anywhere.
3. Sacrifice of some national requirements: In
particular, the globalization of the strategy often requires one or more
countries leaving the strategies, products, etc. accredited long.
A uniform marketing can reduce the adoption behavior
of local consumers and the environment thereof.
4. Increased risk of creating competitiveness:
Integrate competitive measures may mean sacrifice of income, earnings or
competitive position in some countries.
5. Increased risk of currency fluctuation.