positive and negative impacts of globalisation in agriculture: An economist explains the pros and cons of globalization World Economic Forum

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On the one hand, the negative impacts of EG are often experienced by developing countries in agricultural sectors, such as increases in inequality and landlessness . But on the other hand, based on our study, EG is proven to have a positive impact and accelerate the achievement of sustainable development goals. Therefore, we recommend that further research be carried out more comprehensively by involving more countries’ samples, a more extended data period, and many trade economists. For instance, the DR’s economic situation improved due to many FDI inflows in the electronics and tourism industries . FDI has also substantially impacted output growth in many Asian countries, such as Bangladesh, China, India, Indonesia, Malaysia, Pakistan, the Philippines, and Thailand . Meanwhile, for Viet Nam, EG is helping to accelerate its economic development .

Indian farmers may not get the international buyers as the quality of our crops is not as per the international standard. Indian farmers can also use modern technology and machinery which are now used only in foreign countries. To make agriculture successful and profitable, proper and considerable amount of thrust should be given to the improvement of the condition of marginal and small farmers. Globalisation is usually demonstrated to indicate the integration of the economy of the nation with the world economy, which is a multifaceted aspect. Globalisation is the final product of the collection of multiple strategies that are directed at transforming the world towards greater interdependence and integration.


This is also justified by Becvarova , globalization is transforming the whole system of food production, processing, and distribution in such a way that it also affects AVA. Geographical indexing have improved demand for such commodities in international markets and this have positive effect on farmers income. Globalization empowered more prominent admittance to mechanical progressions in horticulture, including high return assortments, hereditarily altered crops , and miniature water system strategies. Unfamiliar interest in horticulture in agreement cultivating, cold capacity and food handling have helped ranchers. Admittance to unfamiliar business sectors has extraordinarily supported Indian rural products. Then again, in nations where expenses of creation are decreased by further developed framework and examination, agribusiness can become half higher than previously.

This has led to the displacement of small-scale farmers, who are often unable to compete with these large-scale operations. Another positive impact of globalization on agriculture has been the exchange of agricultural technologies and knowledge. The movement of people, ideas, and technologies across national borders has helped to spread innovative agricultural practices and technologies to countries around the world. This has led to the adoption of new crop varieties, irrigation systems, and other technologies that have helped to increase productivity and efficiency in agriculture.

Globalization caused change in nourishment propensities with expanded utilization of proteins, sugars and fats causing increment in way of life ailments. These protests include people from all walks of life and age cohorts. Businesses are essentially constantly creating global demand for their tangible products. In this scenario, you have experienced one of the effects of globalisation. A lot of land is preserved for agricultural purposes only, and that restricts the area we can use to accommodate the living quarters of the constantly increasing human population. The effects of globalisation relate to the footprint that the manifestation of the process has had on countries.


Not a year ends without incidences of terrorism in my community, something that has affected its welfare and unity that existed before globalization. According to recent studies, there were nine thousand terroristic attacks performed worldwide in 2017. Under globalisation, majorly after 1990, the farmers in India have been exposed to new challenges and task. The prohibition of importing products that are made with child labour is done in the _____. The global protests over the killing of Mahsa Amini is an example of the effect of globalisation on _____.

  • So, developing countries must have the right strategies in implementing EG.
  • This can be done by banning the importation and/or exportation of products that violate human rights.
  • The EU, for example, prohibits the import of products manufactured using child labour.
  • As a result, we’ve drawn attention to the good things about globalization in both developed countries and developing countries as well as some bad things about globalization in these states.
  • Because of globalization, Indian ranchers will attempt to develop more money harvests and there will be a deficiency of food in our country.

In a globalised world, decisions that are taken are done so to the benefit of the wider global population. In addition, the availability of information makes political-type decisions more transparent. Globalisation also ensures that smaller developing countries can unite and work together for their better good. Moreover, the rise of technology and the internet has given the oppressed a voice so that people around the globe know what’s happening and can lobby for changes. In the labor market, EG often contributes to the exploitation of labor in developing countries. This is because the system keeps labor costs as low as possible but must have high productivity.

Effects of Globalisation: Positive & Negative

The word population is constantly increasing, and it is important to find place for them to live in. This is leading to cramped conditions in already overcrowded urban settlements. This is a vicious cycle, since farmland allotment is mandatory in a world in which a huge population needs to be fed. As such, it is important to maintain a balance between land allotment. Let us start by looking at the positive effects agriculture has on the world.


Theoretically, access to new markets is mutually beneficial — as trade is voluntary, when people buy products, both seller and consumer are better of once the deal is conducted. Due to globalisation, Indian farmers have faced increased difficulties, notably since 1990. While the development of the crisis and its scope cannot be totally attributed to globalisation, the global scale of the crisis was as a result of globalisation. Conducive environment Government regulations relating to the construction industry is being favorable, and unfair practices in all sections are being checked. What are the positive impact of globalisation on agriculture in India?

Policies to reduce negative effects of globalisation

For example, labor exploitation in the DR increased dramatically in various firms after EG . Meanwhile, large, middle and even small industrial enterprises in developing countries are attended by foreign workers . This has resulted in a regional imbalance between Sabah and Sarawak’s developed and urbanized regions . Globalization has led to increased production for businesses in order to meet global demand. Increased production means more natural resources are used and this can be used up before they are regenerated leading to a negative impact on the environment. Increased globalization of the food supply means people worldwide are more exposed to different hazards, according to a United Nations agency.

Most industries employ only skilled workers due to complicated systems of operation. Instead of staying without an income, most people don’t mind the displacement as long as they are going to earn for a living. This term became popular in the 1990s when ordinary people got access to the global net.

This needs land and https://1investing.in/antly increase in displacement of farmers. Sharpen your knowledge of the international business world with our four-week Global Business course, and explore our other online courses regarding business in society. If you aren’t sure which course is the right fit, download our free course flowchart. According to the course Global Business, globalization has led to an increase in cross-border investment. At the macroeconomic level, this international investment has been shown to enhance welfare on both sides of the equation.

Price instability is a significant effect of globalization on business. Some people establish industries overseas where they get cheap raw materials and labor. They can cut production costs and sell their goods at a low price. Due to competition, some high-quality products differ in prices. No matter how the World Trade Organization has tried to control price fluctuation, their efforts are not successful. These companies reach out to consumers using modern technology.

Positive Effects on Developing Countries

The first impact is to drive up aggregate agricultural output and value-added. This occurs when there is a tariff reduction for intermediate inputs. It provides greater and cheaper access to international inputs and supplies raw materials for industry . However, this would have the opposite effect if import tariffs are reduced on finished agricultural products. The growth in total imports will be higher than the increase in exports and AVA, which will cause the real balance of trade to deteriorate . However, many countries are presently imposing several restrictions on the free flow of international trade.

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Globalization brought in the need for people from developed states to invest in some developing countries. Foreign investment is one of the results of globalization that culminates in many developments in these countries. For instance, some investors want raw materials and goods to be transferred faster to the industry and the market respectively. The only way to do this is to help each government in the building of efficient infrastructure. The local people get jobs from these industries and companies established in their country. Investors boost the country’s economy by paying taxes to the government.

What are Some Advantages of Globalization?

The country that receives the inflow of capital benefits because that capital contributes to investment and, therefore, to productivity. Foreign investment also often comes with, or in the form of, technology, know-how, or access to distribution channels that can help the recipient nation. In case of intensive line stock farming, an opportunity to capture methane emissions which would otherwise contribute to global warming. Once captured, these emissions can be used to generate heat and electrical energy, thereby reducing local demand for fossil and fuels.

Globalization is a causality of cultural erosion in communities from both developed and developing countries. What is more, this article highlights both negative and positive globalization effects which take place in developed countries as well as those which are just developing. Student exchanges are of great value for both of these groups. It is possible to study online and achieve a degree without having to relocate to a foreign state. Most business people use this available means of interaction to get in touch with directors as well as CEO’s of successful traders to invest their money and discuss possible profits and dividends.

Evaluate the Positive and Negative Effects of Globalization in China

There has been the creation of long-term winners and losers generally, with the positive and negative impacts of globalisation in agriculture world being the winners and the developing world the losers. Economic globalization increases the interdependence of world economies due to the growing scale of cross-border trade in goods or services and international capital flows [1–3]. However, many countries are still cautious or reluctant in implementing EG. The KOF Swiss Economic Institute statistics show that the EG index for high-income countries was 74.74 in 2018. In the same period, the upper-middle-income, lower-middle-income, and lower-income countries’ EG index was 57.11, 50.70, and 41.26 respectively . Globalization has sped up the development of agrarian creation at a quicker rate than at any other time.