A naïve internationalism can have many negative unintended consequences.
Relocation of American plant and technology to China and China's consequent economic expansion have allowed a one-party authoritarian government to engage in a massive military build-up, threatening the security and autonomy of other regional powers.
The lack of environmental and labor standards in China has led to environmental destruction and high cancer rates among Chinese workers. Americans talk on iPhones partly made by desperate Chinese workers surrounded by suicide nets in a country where slave labor is widespread.
Economists promoting NAFTA forecast that it would strengthen the Mexican economy and cut illegal immigration as Mexicans would find more jobs in their own country. Instead, an avalanche of cheap agricultural exports from the United States wiped out Mexican peasant farming and increased the number of desperate migrants seeking work in the United States. This places additional burdens on schools, hospitals, and welfare systems already under tremendous stresses, and it places downward pressure on wages for America's most vulnerable.
Negative results of internationalism include hot money flows where speculative risk capital seeking high returns rush into emerging markets only to be rapidly withdrawn when the mood changes, resulting in chaos in global currency markets and industrial output.
Because internationalism favors large mobile international capital, it tends to weaken the bargaining power of national politicians and the people they represent. The gains of globalization have mostly flowed to the top, while the job losses and economic crises have most negatively affected the most economically vulnerable. Internationalism has increased the gap between rich and poor in the United States to levels not seen since the Gilded Age.
The savings glut in China and their recycling of capital into U.S. Treasury bonds allowed the Federal Reserve to stimulate the economy with artificially low interest rates leading to a massive misallocation of capital into non-productive, speculative assets, like domestic real estate, rather than productive assets.
When these asset bubbles burst, politicians bail out the banks that facilitated them at public expense (public losses, private gains) while small businesses (that didn't cause them go bankrupt) struggle. Economic mobility consequently has stagnated as small businesses have borne the brunt of economic dislocations caused by the globalists and their speculations.
Political instability has been the result in America and Europe as citizens increasingly view their politicians as captive servants of the globalist international financial elite.
A recent study by the National Bureau of Economic Research has shown that the negative effects on employment by the relocation of whole industries to foreign countries can have profound and lasting negative employment effects on whole regions from which the industries were uprooted.
New publications in international trade theory have shown that, although much of international trade results in positive-sum gains, sometimes these gains are highly asymmetric, and sometimes they can be negative-sum from the standpoint of a nation competing with other nations for the retention of key industries. Because of this, some international trade can be shown harmful to the long-run national interest....
This is particularly true in the case of technology transfers in key industries.