Globalization is the affair of interchange
and incorporation among the people, governments or companies of divergent
states, a process aided by the ascending role of the internet. Globalization
has a number of positive repercussions like the creation of a global market and
the expansion of the foreign trade in the world. Despite these effects,
globalization has also negative outcomes, which will be the topic of discussion
of my essay. These consequences include the rise of job insecurity, fluctuation
in prices and many others.
Firstly, in developed countries, people are
afraid they can lose their jobs. Developed nations have outsourced construction
and office jobs. That means fewer jobs for their people. This is due to the
process of outsourcing their manufacturing work to countries that have a lower
wage. Most people like engineers and scientists have been laid off due to the
redistribution of jobs to low-cost countries like Chile and Pakistan. This is
very worrying as the country may lose valuable professional people who could
contribute to the development of the country. Also, the outsourcing to
developing countries may cause a dip in the demand for that job, which would
affect badly the economy of that country.
In addition, globalization has contributed to
price fluctuations. Because of increased competition, developed countries are
forced to lower their prices for their products, because other countries like
China produce goods at a lower cost that makes the goods cheaper than those
produced in the countries developed. So in order for developed countries to
preserve their customers, they are forced to lower their commodity prices. This
is a disadvantage for them because it reduces the ability to maintain social
welfare in their own countries.
Furthermore, globalization creates an
interconnected economy. The disintegration of the American economy opened the
opportunity for foreign companies to purchase interests in American companies.
Investing in foreign companies creates a global interdependency that can
stabilize the economy on a temporary basis. It also has the potential to create
a “global domino effect,” which could cause a depression throughout the world.
This is also true the other way around. As American companies become correlated
to foreign markets and workers’ economic decline in those marketplaces may
adversely impact the American business.
Finally, globalization has produced a very
contentious setting in the whole world. Every nation tries very hard to sell as
many goods and services, at the lowest price possible. The prices are integral
because the lower and more economical the prices are among competitors, the
bigger the demand because the people are always looking for the cheapest
products. This has stimulated the so-called currency race to the bottom. This
makes every country drop the value of its currency. And this isn’t the only
upshot of globalization when the value is concerned. Another way companies
abridge costs and sell at the lowest price is by paying lower wages to their
employees, using cheaper fuels that pollute the environment more, and
substantially let more pollution into the air promoting the global warming to
Globalization is an inescapable undertaking
that has existed for a long period of time and has continued to expand further
using all the resources possible to make trade more productive. With all of the
above mentioned adverse outcomes of globalization, it leads us to the
conclusion that if globalization had a negative effect on civilizations and
countries before, causing them to subside completely, this event is bound to
happen again in the future. The question is just when.