Globalization and Technological Advancements

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What are the negative effects of globalization?

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Lynnette Wofford eNotes educator | Certified Educator

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While globalization can increase the profitability of certain businesses, it can have several negative effects.

First multinationals with globalized structures can avoid paying taxes, meaning that they essentially become free riders, taking advantage of infrastructure and social safety nets to which they do not contribute.

Next, globalized supply chains can shift production to low wage countries, having a global downward effect on wages. This can also lead to a race to the bottom, with globalized companies farming labor out to sweatshops in countries with minimal labor regulations. Child labor and other forms of abuse of workers can be major issues.

An other major problem is that companies may move operations to countries with little environmental regulation or oversight, leading to massive environmental degradation.

Because companies rely on globalization, they can lead governments to ignore human rights abuses in countries that offer cheap wages.

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Dayna Watsica eNotes educator | Certified Educator

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There are many ways in which to answer this question. So, I will list three negative effects of globalization.

First, globalization divides the world into various sectors. For instance, most of the manufacturing is done in Asia. This creates a divided world. In many ways it is far better to have all industries in each country, so that there will be self-sufficiency. What happens if there is a natural disaster or an international conflict?

Second, with globalization, there is the need for transportation. With cheap oil, this might not be a problem, but with the rise of the price of oil, this becomes problematic. When the barrel of oil reached 150 dollars, this caused great problems.

Third, globalization often makes the rich richer and the poor poorer. For instance, manufacturing jobs in Asia pay little, conditions are far from ideal, all the while those in charge make a killing.

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