Benefits of Hyper Globalization:
- Increased liquidity of capital allowing investors in developed
nations to invest in developing nations.
- Corporates have greater flexibility as well as influence to
operate across borders.
- Global mass media agencies ties the world together.
- Smooth flow of communication allows complex information to be
shared between individuals and organizations across the globe.
- Great network of logistics and supply chain management across
the nations.
- Reduction in cultural barriers increasing the global village
effect.
- Spread of democratic ideals across nations.
- Reduction of likelihood of war between nations.
Costs of Hyper Globalization:
- Consumoption of finite resources more quickly.
- High increase in world carbon dioxide emissions due to
aggressive production.
- Makes it virtually impossible for regulators in one country to
foresee the worldwide implications of their actions.
- Acts to make world oil prices volatile.
- Transfers jobs from developed countries to less developed
countries due to lower costs.
- Transfers investment spending from developed countries to less
developed countries dueto lower manufacturing costs.
- Tends to set up a currency “race to the bottom,” with each
nation trying to get an export advantage by dropping the value of
its currency.
- Highly encourages dependence on other nations for essential
goods and services.
- Ties nations together, so that if one nation economy collapses,
the collapse is likely to ripple through the system, pulling many
other nations with it.