Merits of Global Economy:
The economic globalisation has many good effects. At first, when the multi-national companies enter into a country they open factories for their production.
So, the local people get job. Thus, it helps in eradicating unemployment.
Secondly, by the investment of capital, the sick industries of a country become workable. Production increases and the market get many new products.
Thirdly, by globalising economy, new know-how enters into a country. That technique improves the existing system of a country and makes it self-sufficient in the economic field.
Fourthly, by the investment of foreign capital, a country improves in various fields. This is regarded as the sum total of the progress of a country. Global economy helps in every way for the progress of a country.
At last, when an individual becomes free from the clutches of a state or country, the responsibility of that state or country becomes nil.
On the other hand, the individual tries to get more and more success and he succeeds in his mission. The country also thinks many welfare projects for the people.
Demerits of Global Economy:
Global Economy has many bad effects. At first, it is responsible for ‘Brain Drain’. A man, trained in much technical know-how, is taken from a country to other because of attractive salary. This hampers the progress of the first country.
Secondly, through this the developed countries show their mastery over the developing countries. This brings danger to the sovereignty of that country.
Thirdly, by bringing loan from IMF or Word Bank, a country loses its importance before them. The country is forced to obey their order. This brings ‘Economic Slavery’ to a country.
Fourthly, this trend towards global economy is detrimental to the progress of a country. The country cannot take independent decision in economic field. Besides, other important aspects like education and health are regulated by those financial organisations of the world which may not suit the people of that country.
Fifthly, by this trend, the culture of a country enters into another. As a result, the culture of that country loses its identity. This brings cultural decadence.
Sixthly, the capitalistic attitude of the developed countries is reflected in other country which is a bad trend. The developed countries regulate the market of the developing countries which gives the feeling of colonialism in a new form. ‘
Finally, by investing capital in other developing countries, the developed countries exploit the labourers, workers and child-labourers of those countries. So, this trend towards global economy should be changed.
One may criticise the trend towards global economy. However, it has become the order of the day. It helps a lot in the progress of a country. If a country will be cautious, the global economy cannot do harm to it, rather, it will help in its total development.