Even though globalization affects the world’s economies in a positive way, its negative side should not be forgotten. Discuss.

Globalization

is fundamental in order for human society to remain relevant in the future. While

globalization

has many positive

effects

on the economy, we cannot ignore the fact that it has many negative

effects

as well. The following essay will discuss

this

issue in depth. It is true that

globalization

offers many opportunities for developing

countries

to attract Foreign Direct Investment (FDI) to their economies.

Moreover

, it facilitates easier exchanges and trades internationally, while allowing for the development of trade.

Further

, by utilizing

this

process

, it is

also

possible that the

process

of socialization would be accelerated.

For example

, goods exported from a country that has signed the ASEAN Free Trade Agreement are eligible for tax concessions when exported to ASEAN

countries

.

Therefore

, it is imperative that we recognize the immense benefits that

globalization

can bring to our economies, and do our utmost to leverage them. It is important to note that these positive

effects

cannot negate the fact that

globalization

has a profound effect on the development of the gap between the rich and the poor. The gap between the rich and the poor is widening rapidly, especially in developing

countries

.

Furthermore

,

this

process

often results in conflicts of interest between

countries

, and if conflicts persist, a war may break out

as a result

. The

globalization

process

has led to the substitution of human resources for automatic machines, which has resulted in an increase in unemployment within China. According to an aggregated statistical source, the unemployment rate in China is approximately 13% (2006). There are still more negative

effects

that have yet to be identified. In general, every problem has two dimensions to it, and we cannot look at the positive aspects and ignore the negative elements. Rather, we ought to concentrate on the wrong side more often in order to make improvements.