Challenges of Globalization Essay

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While there are many benefits to globalization, there is no question that globalization can present some real challenges for organizations, management, and workers.  In this article, the author explores some of the common challenges of globalization, including the strategies that people can use to deal with those challenges.  Because globalization is only likely to impact more and more businesses and continue to impact global economic situations, it is important to acknowledge those challenges and make plans for how to deal with them.  


Before discussing globalization it is important to understand exactly what globalization means.  There are actually multiple different definitions of globalization and the definition used is often heavily dependent upon context.   Generally, globalization refers to the fact that the world’s economies are becoming interdependent. However, the term does not normally stop with economies, because, as economic systems become interdependent, so do cultures and populations.  Globalization is driven by “cross-border trade in goods and services, technology, and flows of investment, people, and information” (Kolb, 2019).  Globalization is based on the concept of economic partnerships, not only between companies, but also between countries.  

There are some very distinct benefits of globalization.  There is no question that globalization has some economic benefits, not only for companies, but also for many different groups of people.  First, globalization has led to an increase in the standard of living for many people in developing countries.  This is due to the fact that globalization has allowed a shift that means that people in these developing nations can be laborers and create goods for countries that have a demand, and the disposable income, to purchase those goods.  This has led to an overall reduction in both the extreme poverty and overall poverty rates.  

Second, globalization has really helped spread technological advances around the globe.  Before globalization, there were dramatic differences in the types of technology available in developed and undeveloped nations, and even in developed nations inside and outside of the Western world.  Much of this depended on infrastructure, and undeveloped nations did not have the resources to develop the type of infrastructure necessary to create technological advances.  Newer technology does not rely on infrastructure in the same way and is also not as expensive to maintain.  This had really narrowed the technological gap that once existed between countries.  

Globalization has also led to an increase in innovation.  The fact that creators from different spaces can come together to collaborate in virtual environments removes many of the traditional barriers to collaboration and innovation.  In addition, globalization increases competition, and competition has always been a driver for creativity and innovation, as different companies struggle to obtain and maintain market share.  Increased competition also leads to lowered prices for goods and services.  This is due to multiple reasons including lowered costs for labor and overhead.  

An additional benefit of globalization is that it has led to an unprecedented exposure to other cultures and other people.
 This exposure to different cultures has meant global demand for local foods, pop culture, and art.  It has also led to a greater understanding of other religions.  This has increased tolerance and understanding, but is not only a benefit. 

While there are plenty of benefits for globalization, there are also some challenges that are very specific to globalization.  Globalization benefits society, at large, but that does not mean that it is beneficial to everyone impacted by it.  First, while globalization has meant income increases in some areas, it has come with a decline in standard of living for some groups.  This is often due to the outsourcing of jobs.  Another challenge of globalization is that it threatens local cultural identity.  While this may not seem like a serious problem, there have been some frightening repercussions from this threat to cultural identity.  These three challenges can make it difficult for businesses and individuals to deal with the impact of globalization.  Finally, because globalization has been driven by the economically dominant Western culture, Western culture dominates much of the worldwide conversation about globalization and industry.  


One of the most significant challenges of globalization is that it is not a universal positive.…

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…it can lead people to ignore the needs of other communities, even innovators that live in those communities.  While Western solutions may work in some situations, it is important to keep in mind that Western solutions and approaches are not universally applicable.  “What works in one country or region might not work in another.  This is particularly true when it comes to the differences between Western and Eastern societies, and developing and developed parts of the world” (Nee, 2012).  Not only do they have different histories, but there may also be differences in physical resources, capital, and human resources that mean that they cannot simply just adopt a Western approach.


There can be no doubts that globalization has led to significant benefits to many people around the globe.  It has helped bring technological parity to different parts of the world, whether the surrounding society is developed or undeveloped.  It has helped bring about an end to much of the poverty around the globe, including bringing people out of the severe or extreme poverty that plagues many people in developing nations.  .....

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Works Cited
Kolb, Melina.  “What is Globalization?”  Peterson Institute for International Economics.  4 
February 2019.  Accessed 22 July 2019.  
Nee, Eric.  “Unconventional Solutions.”  Stanford Social Innovation Review.  16 February 2012.  Accessed 22 July 2019.  
Taylor, Dorceta and Kerry Ard.  “Food Availability and the Food Desert Frame in Detroit: An 
Overview of the City’s Food System.”  Environmental Practice.  June 2015.'s_Food_System.  Accessed 22 July 2019.  

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