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 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 less 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.

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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 market
places 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 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 become more acute.

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.

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