Globalization ORGES SKURAGlobalization is the affair of interchangeand incorporation among the people, governments or companies of divergentstates, a process aided by the ascending role of the internet. Globalizationhas a number of positive repercussions like the creation of a global market andthe expansion of the foreign trade in the world. Despite these effects,globalization has also negative outcomes, which will be the topic of discussionof my essay. These consequences include the rise of job insecurity, fluctuationin prices and many others.Firstly, in developed countries, people areafraid they can lose their jobs.
Developed nations have outsourced constructionand office jobs. That means fewer jobs for their people. This is due to theprocess of outsourcing their manufacturing work to countries that have a lowerwage. Most people like engineers and scientists have been laid off due to theredistribution of jobs to low-cost countries like Chile and Pakistan.
This isvery worrying as the country may lose valuable professional people who couldcontribute to the development of the country. Also, the outsourcing todeveloping countries may cause a dip in the demand for that job, which wouldaffect badly the economy of that country.In addition, globalization has contributed toprice fluctuations. Because of increased competition, developed countries areforced to lower their prices for their products, because other countries likeChina produce goods at a lower cost that makes the goods cheaper than thoseproduced in the countries developed. So in order for developed countries topreserve their customers, they are forced to lower their commodity prices. Thisis a disadvantage for them because it reduces the ability to maintain socialwelfare in their own countries.Furthermore, globalization creates aninterconnected economy. The disintegration of the American economy opened theopportunity for foreign companies to purchase interests in American companies.
Investing in foreign companies creates a global interdependency that canstabilize the economy on a temporary basis. It also has the potential to createa “global domino effect,” which could cause a depression throughout the world.This is also true the other way around. As American companies become correlatedto foreign markets and workers’ economic decline in those marketplaces mayadversely impact the American business.
Finally, globalization has produced a verycontentious setting in the whole world. Every nation tries very hard to sell asmany goods and services, at the lowest price possible. The prices are integralbecause the lower and more economical the prices are among competitors, thebigger the demand because the people are always looking for the cheapestproducts. This has stimulated the so-called currency race to the bottom.
Thismakes every country drop the value of its currency. And this isn’t the onlyupshot of globalization when the value is concerned. Another way companiesabridge costs and sell at the lowest price is by paying lower wages to theiremployees, using cheaper fuels that pollute the environment more, andsubstantially let more pollution into the air promoting the global warming tobecome acuter.Globalization is an inescapable undertakingthat has existed for a long period of time and has continued to expand furtherusing all the resources possible to make trade more productive. With all of theabove mentioned adverse outcomes of globalization, it leads us to theconclusion that if globalization had a negative effect on civilizations andcountries before, causing them to subside completely, this event is bound tohappen again in the future. The question is just when.