GLOBALIZATION
Negative Impacts (RA)
Labour Exploitation
Major companies take advantage of people in third world countries. They pay workers bad wages and also make them work in really bad conditions if they refuse then it can cause termination to the workers.
An example of this would be In 2013, a factory by the name of “Rana Plaza” collapsed due to the poor infrastructure of the building. This killed more than 1200 people and many were injured. Not to mention, as this is against the human rights for the policies under “Prohibition of Forced Labour” and the “Freedom of Speech and Choice”. As individuals were forced to work in these horrendous conditions and were not able to express their opinions or make choices without getting beaten.
Economic Inequality between the Rich and Poor Countries.
The economic growth isn’t equal as the rich countries are taking advantage of the poor countries, as the rich are relatively increasing the imports of manufactured goods using mainly low-skilled labour workers from developing nations. This is why there is a huge difference in economic growth as low-skilled workers receive very low wage rates, leading to why the overall contribution and economic growth of the country is much less than the rich countries with high-skilled workers that receive high wage rates.
As Percy Bysshe Shelly said “The rich get richer and the poor get poorer” as the rich countries are able to make beneficial investments in education and other human capital that produce greater economic output. Whereas, poor countries tend to struggle to acquire investments and assets to low wage rates and high poverty measures. This is why it is a complete struggle for poor countries to sufficiently grow their economies at the same rate the rich countries do.
Reduces Jobs and Employment in Developed Countries
As globalization doesn’t quite increase jobs it moves/transfers productions from high-cost and developed countries to low-cost and developing countries. This means that the developed and high-cost countries often lose jobs due to the production going overseas.
For instance, when Joe Fresh moved its production overseas to Bangladesh for low labour costs. The production plant that was located in Canada or the US closed down and all the workers got laid since the production moved overseas to Bangladesh.
Harmful Effects on the Environment
As when MNC’s construct more factories for their products, they contribute to deforestation by destroying ecosystems, trees, plants, food chains, and causing ecological damage. Moreover, these factories for MNC’s and exportation generate a lot of carbon emissions as it adds to the pollution.
Research shows many MNCs like Apple, PepsiCo, Unilever, and many more tend to pollute way more overseas than they pollute in their home country. This is because their home country has strong and strict regulations on pollution, leading to plans for sustainability and green energy. On the other hand, developing countries have weaker regulations and less strict laws on pollution because they often lack the resources to fight pollution.
Increases the Chance of Large Dips in Economies Worldwide.
As when many countries’ economies become interdependent with other countries whether it through trade or MNC’s, and other businesses. If the foreign countries' economies take a large hit, that will affect the countries they worked/traded with.
For e.g, in eastern countries around the world, there is a high strike that banned all manufacturing and production of clothing and apparel. The Global Clothing Industry is valued at nearly $300 Billion, with such large MNCs like Nike, Adidas, Levis and much more. If the manufacturing and production of clothing and apparel stop, that can lead to such consequences in economies worldwide, as countries are importing tens and billions of dollars of value of just clothing every year.
Work Cited
1. Roser, Max. “Global Economic Inequality.” Our World in Data, 24 Nov. 2013, ourworldindata.org/global-economic-inequality.
2.“Forget Fair-Trade, Buy from Sweatshops.” The Christian Science Monitor, The Christian Science Monitor, 31 Jan. 2011, www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0131/Forget-fair-trade-buy-from-sweatshops.
3.(Forced Labour, Modern Slavery and Human Trafficking), www.ilo.org/global/topics/forced-labour/lang--en/index.htm.
4.Environment South Africa | Green Blog | Eco Bulletin, 18 Aug. 2018, www.environment.co.za/environmental-issues/globalization-and-its-impact-on-the-environment.html.
5. “What Is Globalization? Examples, Definition, Benefits and Effects.” Youmatter, 6 Oct. 2020, youmatter.world/en/definition/definitions-globalization-definition-benefits-effects-examples/. .
6. “Negative Impacts of Globalisation - Globalisation - GCSE Geography Revision - BBC Bitesize.” BBC News, BBC, www.bbc.co.uk/bitesize/guides/zxpn2p3/revision/5.
7. “The Challenges of Regulating the Labor Market in Developing Countries.” World Bank Blogs, blogs.worldbank.org/jobs/challenges-regulating-labor-market-developing-countries.
Main topic
Positive Impacts (Krish P)
Different countries can help contribute and provide foreign aid and different resources such as multilateral, bilateral, military, and humanitarian aid. These are all types of aid that can be provided by different allies and countries to help the countries, whether they are affected by demographic traps or fragile states. (7)
Foreign aid can be used to help, support, and fund poor or developing countries that are facing crises and critical issues like disease or a virus. (3) For example, Canada has offered up to $620 million in bilateral loans to enhance Ukraine's economic resilience in the midst of Russian aggression. (2)
It Creates a Global Economic Expansion of MNC’S
Many companies and corporations like Coca-Cola, Toyota, Nike, Adidas, and many more expand their corporations overseas in foreign countries (MNCs), to have higher profit margins due to low labour costs and to even boost the economy in developing nations too, as it opens more job opportunities. (1)
Increases Trade of Goods/Products/Services Between Countries
As international trade has increased efficiency in global trade and reduced time and cost. In other words, it allows countries to turn their “unneeded” resources into money or in exchange for “needed” resources. It also reduces global poverty through economic growth, such as creating jobs, reducing prices, increasing the variety of goods for consumers, and helping countries acquire new technologies. Also, exporting and producing such goods and services, does lead to more employment and stable jobs. (7)
Increases Immigration Globally as More People can Contribute towards the Economy
Immigration and migration, as it grows the number of people that move within countries and across borders, are looking for better employment opportunities and access to a better lifestyle, education, health care, and other services that are provided by the country. The people that immigrate, they are able to utilize their education and knowledge to cater to the workforce and economy. (9)
Boosts Culture and Diversity
Cultural wise as it promotes different traditional religions and belief systems around the world, as it gives access to cultural products like art, entertainment, traditions, and education. This also adds more foreign values and attitudes to countries. (6)
Food is an important aspect of culture and tradition. As the cultural globalization of food has been recognized through fast-food franchises and brands like McDonald’s, Coca-Cola, Starbucks, and Domino’s Pizza, and many more. These fast-food giants serve all kinds of food from different cultures all over the world, as it helps build foreign and cultural value. (5)
Work Cited
Positive Impacts Resources
1. Britannica, The Editors of Encyclopaedia. "multinational corporation". Encyclopedia Britannica, 30 Aug. 2022, https://www.britannica.com/topic/multinational-corporation. Accessed 13 September 2022.
2. Canada, Global Affairs. “Government of Canada.” GAC, Government of Canada, 22 July 2022, https://www.international.gc.ca/world-monde/issues_development-enjeux_developpement/response_conflict-reponse_conflits/crisis-crises/ukraine-dev.aspx?lang=eng.
3. CFI. “Foreign Aid - Overview, Purpose, Types and Examples.” Corporate Finance Institute, corporatefinanceinstitute.com/resources/knowledge/economics/foreign-aid/.
4. Hall, Roger D. , Morton, William Lewis , Krueger, Ralph R. , Bercuson, David J. and Nicholson, Norman L.. "Canada - Trade". Encyclopedia Britannica, 13 Sep. 2022, https://www.britannica.com/place/Canada. Accessed 13 September 2022.
5. Mincyte, Diana. “FOOD CULTURE, GLOBALIZATION, AND NATIONALISM.” University of Illinois, The National Council for Eurasian and East European Research, https://www.ucis.pitt.edu/nceeer/2008_823-15n_Mincyte.pdf.
6. National Geographic Society, “Cultural Identity.” National Geographic Society, https://education.nationalgeographic.org/resource/resource-library-cultural-identity.
7.. National Geographic Society. “Effects of Economic Globalization.” National Geographic Society, 23 Dec. 2019, www.nationalgeographic.org/article/effects-economic-globalization/9th-grade/.
8. National Geographic Society “Globalization.” National Geographic Society, https://education.nationalgeographic.org/resource/globalization.
9. United Nations. “Globalization of Migration: What the Modern World Can Learn from Nomadic Cultures.” United Nations, https://www.un.org/en/chronicle/article/globalization-migration-what-modern-world-can-learn-nomadic-cultures.