Economic theory suggests that even while one nation may produce everything better than another nation, or have an absolute advantage over another nation, both nations will be better off exploiting comparative advantages if they specialize in producing a certain product. Globalization brings about the promotion of specialization. By removing barriers of trade, nations around the world will come to depend on each other to produce certain products, which will benefit them all. However, nations that specialize in creating products that cause pollution or environmental damage can prove detrimental to the state of that nation.
Globalization is anticipated to cause a drastic increase in illegal activities such as human trafficking. According to Washington University in St. Louis, it is estimated that tens of millions of children are sold into labor and sex slavery and forced to fight in militaries. However, globalization does promote the propagation of democratic beliefs and values. According to a case study analyzed by Washington University in St. Louis, a higher level of freedom leads to an improved economy.
Globalization provides the option of outsourcing jobs to other countries. This means the cost of labor will decrease, benefiting business, as jobs are sent to other countries where lower wages are acceptable. However, this also promotes the proliferation of technology from more powerful nations to other developing nations, thus contributing to a more efficient use and allocation of resources. Outsourcing also affects job security, as those who work in a certain nation may lose their jobs to another employee overseas or find themselves forced to emigrate to stay with their jobs.
Globalization strongly promotes tourism. Nations that rely on revenue from tourism will receive a substantial boost in financial stability. However, the constant travelling can affect the health of tourists, as their immune systems become pummelled with a variety of different pathogens. Furthermore, tourists can bring diseases to different nations, such as HIV/AIDS, increasing the chances of causing a pandemic.