The issue of how globalization has affected the world’s economy has been a subject of debate for a while. This essay will discuss some benefits and drawbacks associated with this trend.

To start with, making the world a global village has had a positive impact on its economy through a tremendous increase in foreign direct investments. Many countries have the opportunity to inject more funds into its economy by attracting investors from all over the world. Furthermore, technological innovation has increased through globalization as countries can share ideas and resources thereby resulting in the production of cutting-edge solutions to human problems.

However, globalization has some drawbacks too. One major flaw of this is the interdependence of countries on one another. Issues, wars, and conflicts erupt between nations causing various bans and trade-wars to be adopted, and while it could be resolved through diplomacy and negotiation, the economy gets negatively impacted during the crisis. Additionally, this phenomenon has placed sovereignty under threat meaning that no nation can hide its discoveries or innovation from the world anymore. It is now easier than ever to copy another country’s idea to produce something closely related to it. For example, China is known for its production of cheap and similar phones to the iPhone owned, produced, and designed in the United States.

To conclude, though globalization has benefited the world’s economy through an increase in foreign direct investments and technological innovation, it has also affected it through interdependence and threat to sovereignty.