There has been growth in competition across the world because of globalization. A few of the major advantages which are associated with globalization is that it results in specialization and improved division of the labor because of the risking market space and competition. There are some salutary effects in costs and prices associated with scope and the economies of scale, which in a way acts as a major reason for the economy’s growth. There are trade gains to a wider array of actors like trading blocs, individuals, nations, firms and the whole region. Hence, with a possibility of higher level of wages, production and increased output, there is a relative gain for all the parties which in a way results in the improvement of the human welfare. It has been seen that there are advantages associated with the process of globalization (Bardhan 2006). However, if one takes into consideration the questions like equity and distribution and the beneficiaries from the process of globalization, it could be seen that the burden of exclusion and marginalization and also exclusion when the benefits are shared has to be felt by the poor people from the developing countries.
At various levels the costs associated with the process of globalization could result in conflicts; this is true especially in the case of when most of the nations which are getting benefitted from globalization are the richer nations of the OECD. The overall impact of globalization is not what was expected; instead of resulting in convergence it has resulted in divergence in income across the world in economies which are growing rapidly but at the same time the some of the nations are left behind in this process.