Globalization: An Opportunity or a Threat?

Add Review

GREAT LAKES Chennai (Avg. Salary Rs. 18.10 LPA) Open   | Apply Now
JAGSoM Bangalore (Avg. Salary Rs. 13.3 LPA) Open   | Apply Now
BIMTECH Greater Noida (Avg. Salary Rs. 11.24 LPA) Open   | Apply Now
IFMR GSB Krea University (Avg. Salary Rs. 13.5 LPA) Open   | Apply Now
IMT Nagpur PGDM Admission 2024 Open   | Apply Now
Mahindra University MBA Admission 2024 Open   | Apply Now
Jaipuria Noida, Lucknow, Indore and Jaipur Open   | Apply Now
XIME Bangalore Admission 2024 Open   | Apply Now
SDA Bocconi Asia Center Admission Open   | Apply Now
NDIM New Delhi Admission 2024 Open   | Apply Now
Attend MOCK GD PI by MALAY RAY | Best B-schools for CAT/XAT 50-80%?
Attend Free Webinar on Sat, Feb 24, 5:00 PM | Limited Seats | Register Now

Register now for latest MBA Exam & Admissions Updates

What is Globalization?

According to International Monetary Fund, Globalization refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. In addition, there are also broader cultural, political and environmental dimensions of globalization. 

Alert! MBA Admissions 2024 Closing for Top CAT, XAT Colleges | Apply Now 
GREAT LAKES Chennai | Closing Soon | Apply Now BIMTECH Greater Noida | Closing Soon |Apply Now
BIM Trichy | Closing Soon | | Apply Now JAGSoM Bangalore Admission 2024 | Apply Now
SDA Bocconi Asia Center Admission | Apply Now IFMR GSB Krea University | Closing Soon | Apply Now
Woxsen University Admission 2024 | Apply Now       Jaipuria Institute of Management | Apply Now
IMT Nagpur | Closing Soon | Apply Now IMT Hyderabad |Closing Soon| Apply Now
SOIL Gurgaon | Closing Soon | Apply Now Mahindra University Hyderabad MBA Apply Now
IBA Bangalore Admission 2024 | Apply Now JIMS Rohini Delhi PGDM Admission 2024 | Apply Now

Got Interview Calls? Attend MOCK GD & PI by MALAY RAY Sir Missed Calls? Check Best B-schools To Apply with CAT/XAT 50-80%? Attend Free Webinar on Saturday, Feb 24, 5:00 PM | Register Now

The four basic aspects of globalization identified by the International Monetary Fund are

  • Trade and transactions,
  • Capital and investment movements,
  • Migration and movement of people and the
  • Dissemination of knowledge

Further, environmental challenges such as climate change, global warming, cross-boundary water, air pollution, and over-fishing of the ocean are also linked with globalization. 

Latest GD Topics: Read 200+ Group Discussion Topics 2024 for MBA Admissions  
India Vs Maldives: How Lakshadweep Can Become A Major Tourist Destination
One Nation One Poll’: Benefits are More for India
Viksit Bharat@2047: A Timely Program for India's Transformation
The Deepfake Dilemma: Unravelling the World of AI-Generated Content
Narayana Murthy's Call for a 70-Hour Workweek: A Debate on Pros and Cons 
Peer Pressure and Family Pressure - Can it make or break your future?
Aim for the Moon, if you miss, you may hit a Star
Foreign Universities in India: Will it raise academic standards and benefit Indian students, parents?
World War 3: Will Russia Ukraine Conflict result in Third World War?
Union Budget 2023-24: Expectations & Key Highlights
Digital Public Goods (DPG): India’s approach and opportunities for the World
Tech Layoffs: Top Tech Layoffs At Big Tech Companies In 2022
India as the world’s 5th largest economy: Set to Become 4th by 2022
Indian Digital Rupee: A landmark financial initiative?
Moonlighting in India - What, Why and Should of this HR nightmare
5G Telecom Services in India – Benefits and Impact
Buy Now Pay Later (BNPL): A convenience or a trap
National Logistics Policy: Will it Reduce Costs & Improve Competitiveness of India
Agnipath: Will it Prove a Military Transformation Scheme?
Union Budget 2022: Key Highlights; will it propel post pandemic Economic Growth?
Crypto Currency: A bright future or just a fad
Privatization of Public Sector in India: A right step or selling family silver?
Social Media: A boon or a bane for society and individuals
E-Learning: A substitute for Classroom Learning?
Farm Laws Repealed: PM MODI withdraws the three farm laws
Central Bank Digital Currency (CBDC): Impact on Indian Financial System & Cryptocurrency

Driving Factors

  • The creation of the World Trade Organization, World Bank and other major trade organizations their rules and regulations in part, facilitated broad 'global' changes, lowering trade barriers and deregulation of economies.
  • In the aftermath of financial instability, the Government of many developing and poor countries liberalized economies internationally to boost development and attract investment.
  • It is considered that open economies are all better off from trading, as they make use of their resources in most optimal way and offers variety of products at competitive prices.
  • After I970s, Business Corporations and banks based in the most highly industrialized countries were driven by their intrinsic and incessant pursuit of wider markets, further and more profitable investment fields and access to essential resources elsewhere in the world. All these aims of these Organizations, supported by their governments in 'the national interest' pushed for Globalization.
  • Industrial and Financial corporations sought internationalization of their respective products, and investment operations to evade economic, social and political 'impediments' at home as well as to take advantage of more favorable opportunities abroad.
  • The main forces that have driven global integration are technological innovations, broader political changes and economic policies.

Group Discussion Topics & Tips: Learn the Facts

  • Group Discussion (GD) is widely used for Admissions to top MBA colleges, Job interviews, and other selection process.
  • GD Tips: Learn how to start a group discussion, take the lead, make positive impact, and score high.
  • Top 100 GD Topics: GD topics can be based on Current Affairs, Business & Economy, Social Issues, or Abstract.
  • Prepare GD with Read 100+ GD Topics with Answers, Solutions. New topics added every week.

Globalization as an Opportunity

  • Greater Opportunity: Global markets offer greater opportunity for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets.
  • Cross-cultural Integration: Liberalized nations offer multiple avenues for higher education, tourism and jobs to the immigrants of different countries resulting in cross culture Integration.
  • Prosperity: Globalization has helped lift hundreds of millions to escape poverty over the past decades. Populous countries like China and India have enjoyed phenomenal growth, improved standards of living, life expectancy, literacy and employment rates.
  • Outward-oriented policies brought dynamism and greater prosperity to much of East Asia, transforming it from one of the poorest areas of the world 40 years ago. 
  • According to International Monetary Fund, 20th century saw unparalleled economic growth, with global per capita GDP increasing almost five-fold.
  • Competition: One of the most visible positive effects of globalization is the improved quality of products at competitive price. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. 
  • Foreign investment: Multinational corporations are a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows. 
  • Technological Innovation. Increased competition from globalization helps stimulate new technology development, particularly with the growth in FDI, which helps improve economic output by making processes more efficient.
  • Global Challenges: Globalization helped attenuate the major environmental challenges we are experiencing today. Some national and international agreements such as UN Framework Convention on Climate Change, The Kyoto Protocol etc. aim to attenuate the negative effects of globalization on the environment. 
    BBA Admissions 2024 Open | Apply Now
    Sri Balaji University Pune BBA Admission | Apply Now NSB Bangalore BBA Admission | Apply Now 
    IFMR GSB KREA University BBA+MBA | Apply Now IFMR GSB KREA University BBA+MBA | Apply Now

Threats that globalization offers:

  • Unemployment: Due to globalization immigration of labor from developing countries to developed countries has become much prominent and easier. This has resulted in unemployment for the native citizens.
  •  The historic withdrawal of United Kingdom from the integrated market of European Union fearing job loss due to immigration and protectionism towards national sovereignty is a case in point.
  • Inequality: The story of the 20th century was of remarkable average income growth, but it is also worth noting that the progress was not evenly dispersed. The gaps between rich and poor countries, and rich and poor people within countries, have grown.
  •  According to the World Inequality Report by the World Inequality Lab, because of high and rising inequality within countries, the top 1% richest individuals in the world captured twice as much growth as the bottom 50% individuals since 1980.
  • Trade wars: The US is running large trade deficits with the EU as well as China. In addition to significant trade deficits in goods with Mexico, Japan, and Canada, Mr. Trump believes the trade deficit of US is proof that all its trading partners are unfair to America. As a protectionist measure, Donald Trump, pushed through a metal tariff plan that puts 25% tariff on imports of steel and 10% tariff on import of aluminium.
  • The international atmosphere is full of threats of retaliation and it appears likely that major trading partners with the US like the EU and China will hit back by setting their own import barriers against US. 
  • Tax heavens: With different taxation norms in different countries citizens park their illicit or unaccounted money in tax heavens and avoid taxation from their home countries. The revelations made by Panama offshore leaks and Swiss bank case are case in point.

Tips to improve participation in GD round

The above discussed topic is one of the latest topics that has appeared in GD rounds at various top B-schools and as WAT topic also in slightly different form. One needs to understand about the topic before speaking because it is no more a Globalization in its conventional form but is to be taken up in current global scenario. The topic has been carefully chosen and solved with the sole aim to help you succeed in GD round. If you follow the few key tips, you can improve your chances to get through the GD round.