Introduction
Globalization can be referred to as a process through which economies, societies, and cultures have integrated by means of trade, transport, and communication. Globalization has its positive impacts as well as negative impacts. Globalization began to have a significant effect on global business view in the late 18th century. Modernity and globalization are postulated to have begun after the World War II. During this period, nations felt the necessity to break trade barriers and promote free trade activities across the world. This study will focus on the effects of globalization in Saudi Arabia.
Advantages
- Globalization as an important aspect in developing countries since it has ensured free trading activities in Saudi Arabia. As a result, access of goods and commodities from other countries has been eased since there are no restrictions imposed on traders.
- Globalization has ensured workforce mobility in Saudi Arabia. Increased cases of unemployment rates in the country have been solved through globalization. Some economies have excess human capital while others do not have an adequate workforce in workplaces. As a result, unemployed individuals have diversified their job search internationally across other countries.
- Globalization has led to fast and the wider spread of new technology and scientific research in Saudi Arabia. As a result of globalization, there has been the development of new technologies used to facilitate production of goods and services thus increase production and performance.
- Globalization has resulted into increased internalization and establishment of business organizations in foreign countries. Saudi Arabia’s multinational companies have diversified their business activities in developing countries in an aim to expand their market.
- Globalization has helped Saudi Arabia to maintain peaceful relations between other countries across the world. Most countries have resorted into trade relations and other strategic measures in order to promote peaceful coexistence.
- Globalization has also led to massive technological improvement and fast communication between individuals across the world.
- As a result of globalization, different nations’ politics are merging together and coming up with a common decision regarding certain issues. Globalization has been the core reason for cultural bridging and solving conflicts related to diverse cultures.
- Through globalization, Saudi Arabia has been able to expand its oil sales to other foreign countries such as China. Saudi Arabia has established a cordial relationship with China leading to increased oil sales across the world.
- Through free trading activities between various nations, consumers’ price for goods and services will decline. This, in turn, will ensure improved production and trading activities.
- Globalization is considered as a way of acknowledging and appreciating various and diverse cultures. It is important, thus, for the country to learn about the new culture with the aim of embracing civilization.
Disadvantages
- Saudi Arabia has been protecting its cultural norms and beliefs from westernization, and Americanization by foreign countries. Saudi Arabia has been protective on its culture and beliefs. It is, therefore, evident that globalization will lead to erosion of Saudi Arabia culture.
- Globalization has resulted into exploitation by the rich countries. Globalization will allow foreign countries to take advantage of cheap labor in Saudi Arabia. As a result, they will increase their production capacity and profit margin.
- Establishment of multinational corporations in foreign countries tends to have an adverse effect on the workers. These companies are associated with injustice, unfair treatment of workers through poor remunerations.
- Globalization will have a significant influence on the political and economic decisions within the country. Multinational companies in Saudi Arabia will gain enough power to influence some major government decisions.
- Globalization has also been associated with transmission of communicable diseases. Travelers and tourists from developed countries have transfer chronic diseases like the HIV/AIDS in their destination countries.
- It is stipulated that the cultural invasion caused by globalization will lead to disintegration of cultural spirit and identity among the Saudi Arabian citizens.
- Multinational corporations are associated with the mismanagement of natural resources and ecological destruction since they are not concerned about the environment and ecological damage.
- The administration of new and advanced information networks in order to reshape cultural aspect of Saudi Arabia has been criticized by various Arab groups. These advanced practices and interactions are not worthy in the determination of civilization guidelines.
- Globalization has resulted in unethical business practices such as the issue of tax avoidance in order to maximize profits and reduce cost of production.
- Globalization has also led to increased cases of human trafficking, child labor, and labor exploitation. This will have a significant effect on social life in Saudi Arabia.
Conclusion
In the recent years, globalization has improved the living standards of individuals in Saudi Arabia. Apart from the adverse effects, globalization has much more to offer to the general public through improving living standards. The establishment of multinational companies, fast communication of individuals through the internet, and reduced unemployment rates are some of the merits that are attributed with globalization. It is, therefore, evident that globalization merits in Saudi Arabia would outweigh demerits.
Works Cited
Korany, Bahgat and Ali Hillal Dessouki. The Foreign Policies of Arab States: The Challenge of Globalization. New York: American Univ in Cairo Press, 2008.
Rogers, James R. "The Benefits, and Costs, of Globalization." On the square (2013): 1.
