Introduction to Globalization:

Globalization is the process that allows goods produced in one country or workers from one country to enter any country in the world without any restrictions. In other words, globalization is essentially the integration of a national economy with the global market.

In today's era, the entire world has become one. All countries in the world are interconnected from economic, political, social, cultural, technological, etc., perspectives.

People from one country go to another country for employment, business, etc. Goods produced in one country are sold in another country without any restrictions.

The main factors contributing to the rapid globalization in today's era are technological advancements, economic liberalization, development in the transportation sector, progress in the communication sector, the World Bank, the World Trade Organization, the International Monetary Fund, regional economic organizations, etc.

Nepal entered globalization with the start of privatization and liberalization from the decade of 2050 BS (1990s). However, Nepal has not been able to take full advantage of it. Nepal needs to increase its competitive capacity to take full advantage of it.

Positive Aspects of Globalization:

Globalization has many positive aspects. The main positive aspects are as follows:

1. Market Expansion: Globalization has made international markets accessible, significantly expanding the market for goods and services. Goods produced in the country can be exported to international markets, earning large amounts of foreign currency. This can increase production, employment, and income in the country, raising the living standards of the people.
2. Foreign Employment and Remittance Income: Globalization has played a significant role in solving the problem of unemployment in underdeveloped countries like Nepal. As of now, more than four million youths from Nepal have found foreign employment. This has resulted in a large inflow of remittance income. Currently, the remittance income received by Nepal is about 28% of the total gross domestic product.
3. Poverty Reduction: Globalization has played a significant role in reducing poverty in many underdeveloped countries like Nepal. In Nepal, in the fiscal year 2051/52 BS (1994/1995 AD), 42% of the population was below the poverty line. By the fiscal year 2082/83 BS (2025/2026 AD), the population below the poverty line had decreased to 21.6%. The main reason for this is that after globalization, Nepal gained access to foreign employment opportunities, and the resulting remittance income was distributed in Nepal.
4. Acquisition of Technology: Underdeveloped countries like Nepal, which were far behind in terms of technological development, have acquired new and high-level technology due to globalization. For example, mobile phones, computers, transportation equipment, etc., are imported from other countries. If globalization had not occurred, it would not have been possible to use these goods.
5. Benefit to International Consumers: Globalization has increased competition among international producers. They are forced to produce high-quality goods at low cost. This has benefited consumers in the international market, who have access to quality goods at reasonable prices.

Negative Aspects of Globalization:

Globalization has not only positive aspects or benefits but also negative aspects or disadvantages. These are as follows:

1. Adverse Impact on Underdeveloped Countries: Underdeveloped countries like Nepal are behind in terms of technology, skills, knowledge, etc. The industries in these countries cannot compete with the industries in developed countries and other industrialized countries. Therefore, the industries in underdeveloped countries, unable to compete, face the possibility of closure. This can lead to the loss of domestic employment.
2. Brain Drain: Brain drain refers to the migration of educated, skilled, and trained citizens of a country to another country in search of better opportunities. Due to globalization, there is a rapid trend of educated, skilled, trained, and capable human resources from underdeveloped countries seeking better opportunities in developed countries like the United States of America, Canada, Australia, Britain, etc. This is a significant loss for the nation.
3. Environmental Degradation: Globalization has led to market expansion, significantly increasing the demand for goods. To meet this expanded demand, large-scale production of goods leads to emissions of smoke, dust, toxic substances, etc., causing environmental degradation.
4. Decrease in Savings and Investment: Due to globalization, cheap and luxurious goods have been imported into poor countries like Nepal. This has led to a decrease in national savings. When national savings decrease, national investment also decreases. The lack of investment can trap poor countries in poverty. Therefore, a situation has been created where poor countries remain poor.
5. Economic Dependence: Due to globalization, no country is forced to produce all goods themselves. Every country produces only those goods that are profitable or can be produced cheaper than others, while importing other goods. This has increased economic dependence among countries worldwide.