What are some of the disadvantages of globalization?

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gsenviro's profile pic

gsenviro | College Teacher | (Level 1) Educator Emeritus

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Some of the disadvantages of globalization are:

  • It is skewed in favor of countries with know-how (generally industrialized countries): Globalization offers new markets to industrialized countries, such as the US, UK, etc. These countries are able to push their products to countries in Africa and Asia. This onslaught of western products leads to loss of local industry. This results in loss of employment among the people in those industries that cannot compete with cheap products from these countries.
  • Environmental damage: Another disadvantageous aspect of globalization is the option for a company to operate in a country with less stringent environmental laws, as compared to those in the home country. Think of a mining company from the US operating in Africa. The lax or non-existent environmental regulations allows the company to exploit the resources without thinking about the environment. 
  • Exploitation of resources in the underdeveloped world: A related point is the option for companies to operate in poor countries and exploit their natural resources simply because the resources are expensive in their own home countries.
  • Loss of native culture: Globalization adversely impacts the local culture and facilitates a transition to westernized culture, including food, music and lifestyle.
  • Spread of disease: This is also a product of globalization.
  • Dependency on a few countries: Since the business may be skewed in favor of a few countries, a recession there could trigger a global recession.

Hope this helps.

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dcaplan's profile pic

dcaplan | eNotes Newbie

Posted on

From an organization's perspective, the major disadvantage is the effort and expense of having to adapt not only to the social norms of a given country, but moreover striving to maintain a consistent set of norms and behaviors (organizational culture) throughout the globe. This is easier to do with manufacturing firms. But with knowledge workers it becomes much more trying.

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