Globalization is the interaction and spreading of ideas, goods, services, and cultures between various peoples around the planet. Globalization can have positive effects such as bringing economic prosperity to poor countries. It can also have negative effects, however. It’s possible that economic globalization has detrimental effects on the already wide gap between the rich and the poor, as well as severely hurting the environment. In the past in Iceland, globalization had an extremely negative effect on the nation economically; it continues to hurt the country environmentally. “While it's common to hear of companies going bankrupt, many were shocked when the entire country of Iceland almost fell into a state of bankruptcy in 2008…But with much of the banks' capital being loaned outside of the country, Iceland became overly dependent on other countries' economies staying afloat and those countries' residents and businesses paying off their debt. Iceland's problems really began when it became a victim of poor currency trading rates, called carry rates. When currencies dropped in other markets, the Icelandic krona's value fell catastrophically” (Gobel, 2008). Globalization in general has caused a lot of harm to the environment, which has caused the temperature of the Earth to rise. Because Iceland rests in the Arctic Circle, much of its land is frozen and glacial. The heat is causing the glaciers to melt. “Sea levels aren’t the only things rising due to climate change — swaths of land are too, including the nation of Iceland. That’s according to a new study published by a team of geologists from the University of Arizona. According to their research, the melting of Iceland’s glaciers has reduced pressure on the ground beneath them, causing the land to “rebound” from the Earth’s crust” (Kaplan, 2015). Although globalization has so far been bad for Iceland, it’s people aren’t too worried. Iceland’s traditional cultural values have persisted even during the process of globalization. One thing is certain, it’s important to understand globalization and the effects it causes—whether positive or negative—to people, cultures, and the planet.
References:
Gobel, R. (2008, October 27). Iceland's Near Collapse: What Can We Learn? Retrieved from http://www.investopedia.com/articles/economics/09/iceland-bankruptcy.asp
Kaplan, S. (2015, February 2). Climate change, melting glaciers make Iceland spring upward like a trampoline. Retrieved from https://www.washingtonpost.com/news/morning-mix/wp/2015/02/02/climate-change-melting-glaciers-make-iceland-spring-upward-like-a-trampoline/
Gobel, R. (2008, October 27). Iceland's Near Collapse: What Can We Learn? Retrieved from http://www.investopedia.com/articles/economics/09/iceland-bankruptcy.asp
Kaplan, S. (2015, February 2). Climate change, melting glaciers make Iceland spring upward like a trampoline. Retrieved from https://www.washingtonpost.com/news/morning-mix/wp/2015/02/02/climate-change-melting-glaciers-make-iceland-spring-upward-like-a-trampoline/