Modern experts believe that globalization is essential to progress towards achieving economic, social, and cultural development on the international level. Nevertheless, these experts, including economists and technologists, fail to consider the massive social, environmental, economic, political, and cultural impacts of this phenomenon. Noteworthy, environmental pollution, social and moral degradation, political manipulation, and exploitation of the poor population by the wealthy nations are some of the most evident impacts of globalization in the modern world.
Globalization has led to massive investment by American and European firms in emerging markets such as China, India, and South Korea. Nevertheless, as these companies make huge profits, several negative impacts are worth mentioning. They are seeking cheap and reliable labor and large markets. Populations in countries like India, China, South Korea, and other nations are affected by low-income rates. Their populations, though learned, tend to provide cheap labor. The work-life balance is a major problem in these industries. Employers expect their employees to work like machines, show perfection in production, and ensure that the cost of production is relatively low.
These companies tend to provide their employees with poor pay for similar positions that seek a good salary in the western world. The allegations made against Apple Corporation and other American companies in China provide good examples of this phenomenon. These companies tend to pay low wages for employment positions that may fetch thousands of dollars a year in the US and Europe.
With increased communication technology, people in the developing world desire to move into the developed world, with the aim of finding employment. Nevertheless, these people are often victims of human trafficking.
Industrial globalization increases the level of carbon dioxide emissions. Coal and petroleum products are burned quickly to meet the demands of the global markets. For instance, between 1987 and 1997, the level of carbon dioxide in the environment was increasing by more than 1.0% per annum and 1.6% between 1997 and 2007.
Globalization is a major cause of increasing oil prices. Due to the emergence of globalized industries in Asia, Europe, and America, oil prices experienced two major spikes. Between 1973 and 1983, the US oil supply declined significantly, causing major price hikes that affected millions of people throughout the world. Between 2005 and 2010, oil prices failed to grow due to exploding demand caused by globalization. As such, poor nations with low capacity to obtain oil are faced with poverty because of a poor supply of goods and services.
Globalization makes it hard for developing nations to compete with world economic powers. Countries with low-cost structures such as low wages and benefits for employees are unable to compete with the developed world. As such, there is an increased rate of transfer of jobs from developing to developed nations.
Questions to the responding teams
With an unequal economic and social prowess between nations, does globalization operate in the interest of the poor nations? What is the role of LEDCs in the world market if not to provide the west with cheap labor and raw materials?
Globalization does not necessarily mean a platform for equalized competition. Low-income nations can capitalize on the production of raw materials to the developed nations. They are set to gain from this globalized trade, as do the developed nations.
Are there guarantees that the wealth created by inward investment will benefit the locals?
It is not necessarily that transnational companies will drive the local companies out of business due to their massive economies of scale. Rather, globalization will allow local companies to work with globalized corporations through joint ventures, mergers, and acquisitions. The local community will still benefit from new employment opportunities.
Are you aware that globalization is a real threat to the world’s cultural diversity? For instance, it is drowning local economies, languages, and traditions as the entrance of capitalists increases in areas such as Africa and Asia.
Globalization works for the best interest of all communities, regardless of their locations. Contrary to your question, the western world is also experiencing an influx of foreign cultures as globalization allows people from developing nations to move into their societies. For instance, African and Asian impact in the US, France, Spain, and the UK is evident. Thus, globalization allows the sharing of ideas and way of life rather than killing diversity.
Globalization is leading to the exploitation of the poor by the rich. For example, in its greed for raw materials, China is exploiting African nations. In fact, the globalized Chinese markets and industries are exploiting wildlife in Africa. Similarly, European nations are involved in ethnic and military conflicts in major mineral production areas, such as the role of BP in Nigeria and French companies in the Congo.
The problem facing the developing world such as Africa is not due to globalization, but lack of effective laws and international cooperation. In fact, it is caused by a lack of globalized legal systems. We are advocating for globalized judicial systems, which will deal with these problems. In addition, the Chinese, European and American influence in Africa is positive because the target nations have enjoyed booming economies, reduced social problems, and increased employment opportunities, infrastructure, and availability of drugs, social amenities, and education facilities. These are facts that are worth mentioning and are products of globalized cooperation.