GLOBALIZATION
Environmental Damage
Globalization has led to increased production for businesses in order to meet global demand. Increased production means more natural resources are used and this can be used up before they are regenerated leading to a negative impact on the environment
As U.S. cities struggle to rein in garbage while propping up pricey recycling efforts, more companies are profiting from America’s growing waste problem and leaving local communities to face the environmental consequences. Solid waste is being shipped out and burned in Pennsylvania. In Chester, Pennsylvania, residents live with the fallout of imported waste in the air they breathe.More than one-third of municipal solid waste accepted by the facility came from Delaware, New Jersey and New York, according to the Pennsylvania Department of Environmental Protection.
Fluctuation of Prices
Globalization has led to ncreased competition. Businesses are not only competing against their local market but also with competitors overseas. This means that businesses with the best prices win. Due to competition prices are always fluctuating
China’s production costs are lower than the US hence they can have ridiculously low prices. For the US companies reducing prices will have a negative effect on their profits which in turn may lead to actions like laying off workers.
Reduced Job Security
globalization takes jobs from one country and provides them to another. This can be negative or positive depending on what part of the world you are in.
For example, many companies are setting up in India and China because wages and manufacturing jobs are cheaper there which means fewer opportunities in developed worlds.
Positive impact's
Higher standards of Living
Globalization has played a great role when it comes to alleviating poverty. Over the past 20 years countries like India, China have experienced fast economic growth and a decline in poverty rates. The number of people living on less than 1 dollar a day has fallen by 200 million. Due to globalization there are more job opportunities as businesses are constantly looking to innovate and improve and many businesses outsource work to developing countries thereby increasing job opportunities.
Countries like Bangladesh have greatly benefited from globalization. The GDP has increased by more than 5% over the past 2 decades and their have been a multitude of new jobs thanks to companies like H and M, Ralph Lauren and The Gap deciding to outsource work to bangladesh.
Increased Competition
Globalization allows multiple producers to compete for hold of an economy. This is beneficial for consumers as competing firms will often increase the quality of their good or service and reduce the price in order to attract consumers to their business as opposed to their competitors. Moreover this
allows the consumers to have a wide variety of products to choose from and arent limited to products from their country or region.
Supermarket chains in the U.K like Asda and Tesco are always monitoring their competitors prices and the quality of the products they provide. They occupy the greatest market share and as consumers are always looking for the best value for their money this encourages these companies to provide the best quality and value for their respective products and services.
Technology and Innovation
Technological advancement is one of the driving forces behind globalisation. Technological advancements reduce the cost of transportation and communication and facilitates sourcing of raw materials. In addition information technology enables buyers and sellers to make transactions anywhere anytime across the globe. Moreover technology is not limited to rich countries like the U.S and is easily transferable to developing countries like Pakistan or Bangladesh.
Global powerhouses like Amazon solely operate online and are able to conduct business successfully thanks to technological advancements and innovation enabling Amazon to become the largest e commerce business in the world. Transactions are all conducted online with anyone across the globe.