Negative Aspects of Globalization

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Negative Aspects of Globalization

Introduction

Globalization is a cultural and economic trend that seems inevitable and unstoppable, but it is not without problems. In general, economic expansion seeks the lowest costs of raw materials and cheapest labor cost, but it frequently overlooks the broader impact that dynamics of globalizing have on socioeconomic status of developing societies. The countries that adopt policies to facilitate globalization have to consider that integration into a global society is not always painless or smooth. The most common complaints against globalization are that it exacerbates the gap between poor and rich both within and among countries and undermines labor standards (Griswold, 2000). Apter (2002, p.13) stated: “The truth is that if one can’t live with globalization, one can’t live without it either. Its consequences are many and diverse. But the devil is in details”. An analysis of globalization’s impact on economies of developing countries points out that globalization is a negative trend that widens the gap between wealthy and poor, exploits resources, and makes developing countries more depressed and marginalized.

Harmful Impact of Globalization on Developing Countries

Negative Trends, Deception, and Role of Multinational Companies

Globalization facilitates integration of economies in terms not only of services and goods, but of technology, information, and ideas (Birdsall, 1999). Currently, the economies of developed industrialized countries are very much growth driven. In order to stay competitive and outperform competitors, they need new markets, more customers, and greater market share. For developed industries of the western world, saturated domestic markets provide relatively littl...

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Ghosh, B., Guven, H., O’Hara, P., Pasha, M., Nath, S.Summerfield, G. (2006). Globalization and the third world: A study of negative consequences. New York, NY: Palgrave Macmillan.

Glyn, A. (2007). Capitalism unleashed: Finance, globalization, and welfare. New York, NY: Oxford University Press.

Griswold, D. (2000). The blessings and challenges of globalization. International Journal of World Peace, 17(3), 3-22.

Hill, W. C. (2013). Global business today (8th ed.). New York, NY: McGraw-Hill/Irwin.

Majecodunmi, A., & Adejuwon, D. (2012). Globalization and African political economy: The Nigerian experience. International Journal of Academic Research in Business and Social Science, 2(8), 189-205.

Robinson, W. (2004). A theory of global capitalism: Production, class, and state in transnational world. Baltimore, MD: Johns Hopkins University Press.

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