Negatives Of Globalization Essay

1435 Words 6 Pages
Globalization can be described as the process in which the world’s economy transitions into a single interdependent system. For example, over that last several decades, the globalized market has increasingly grown at an alarming rate. Large companies and businesses throughout the United States and throughout the world benefit from outsourcing its capabilities or resources. Societies across the globe have established progressively closer contacts over many centuries, but recently the pace has dramatically increased. Organizations within the transportation, communication, technology, and hotel industries have created greater capital flows resulting in different countries becoming interdependent of one another. Multinational corporations …show more content…
One the most important advantages of globalization are goods and products can be transported faster because of free trade between countries. On a positive note, business dealing has decreased the possibility of war between countries. Furthermore, the growth in the communication between the individuals and companies in the world helped to raise free trade between countries resulting in economic …show more content…
Companies may want to build factories in other countries because environmental laws are not as strict as they are when dealing with the Unites States. Globalization can lead to financial problems, as we are currently experiencing in the United States. For example, “In the 1970s and 80s countries like Mexico, Thailand, Indonesia or Brazil got a lot of money from investors who hoped they could build up new businesses there. These new companies often didn’t work, so they had to close down and investors pulled out their money” (CNN Fox News 29 April 2015). Some of the poorest countries around the world may continue to experience poverty due to disadvantages in technology they may not have or the means to get them, also their education also places them at a disadvantage. This is due to less labor that makes the product. In addition, cheaper prices allow for the standard of living for Americans to increase. Though globalization has resulted in reduced costs in the United States, the drawback is that many Americans have lost jobs to foreign workers who are willing to work for less and in worse conditions. Therefore, the American work force must compete with foreign workers in a global economy. Another negative effect is that the United States now has a major trade deficit.

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