Negatives Of Globalization

The Four Tigers of East Asia are Hong Kong, Singapore, Taiwan, and South Korea are prominent examples of countries that have managed to dramatically improve their living standards by deregulating their domestic economies and opening up to global markets. From typical Third World poverty in the 1950s, each of these countries has achieved a standard of living today parallel to that of industrialized nations, with per-capita incomes in Hong Kong and Singapore rivalling those of the wealthiest Western nations (www.worldbank.org).

While writing your essay, you could discuss the kind of impact globalization is having on national economies. For example; how it enables faster economic growth, reductions in poverty, and provides more fertile soil for democracy.

The beneficiaries of globalization are the long suffering consumers, those nations that had been “protected” from global competition before it was embraced. Globalization expands our range of choices, improves quality of products, and exerts downward pressure on prices. It delivers an immediate gain to workers by raising the real value of their wages and it transfers wealth from formerly protected producers to newly liberated consumers, with the gains to consumers exceeding the loss to producers because the deadweight losses to the economy are recaptured through efficiency gains. Consider how globalization had liberated consumers from poor service, overpriced and low-quality goods because of lack of real competition to spur domestic producers to meet the demands of their consumers. Example is the poor quality of cars sold by protected domestic producers in such places as India, where the standard Ambassador car is based on the Morris Oxford, a maker of car that went out of style i...

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... on the people across the world. Their activities are crucial to the economy of the many countries they represent. More jobs are created jobs and higher salaries are paid to its employees when compared to local industries. So vital are MNCs because they are the ones who have made the world a global village. They are responsible for the production and control of all the things that connect the world. Hence their influence cannot be underestimated.

MNCs have come under criticism for their practices. It is claimed that MNCs operations have not been to the best of standards. It is claimed that MNCs maximize profits while ruthlessly exploiting natural resources and leaving host countries in deplorable states. This can be said to be true in areas such as Africa and parts of Asia where living standards and human rights are at a low and environmental standards are not met.