Globalization is unstoppable.
We can see international brands such as Burger King, KFC, McDonald’s and Nike everywhere.
This is the impact of globalization. While there are many advantages and disadvantages of globalization, we shall focus on the negative aspects.
Let us look at the disadvantages of globalization, since the recent financial crisis shows the many disadvantages of globalization.
When the economic crisis started in the United States, many people thought that since United States started the crisis, it should stop the recession.
However, the United States showed that it is powerless to stop the crisis from spreading to other parts of the world.
The near bankruptcy of Greece and Dubai highlighted to us the far reaching effect of the crisis which started in the United States.
That is one of the disadvantages of globalization. Due to globalization, the problems in one country spread throughout the world.
As a result, many people from different parts of the world lost their jobs.
Globalization has reduced the power of the governments to cope with the economic situation. The government of China and United States cannot stop the recession. They do not have much power over the economy.
Even though the various governments tried hard to prevent their people from losing their jobs, they were not very successful.
Globalization empowered the multinational companies. These companies are getting bigger and bigger. Some companies have such huge assets all over the world that they are worth more than many small countries.
If you compare the GDP of many countries, you can see that the GDP is even less than the earnings of those big companies.
The governments do not have the power to stop the multinational companies from closing a factory here, and setting up another factory in other parts of the world.
They do not have the power to stop the big companies from retrenching workers. As a result, the governments have to deal with the jobless people, while the big companies are still making money.
That is why the disadvantages of globalization are so frightening. The big companies will continue to get bigger and more powerful, while the governments of the world grow less powerful.
The problem from one country easily enters the international realm, and affects the lives of so many people.
The most annoying fact is that nobody has the powerful to do anything. Nobody can stop globalization despite its many disadvantages. Nobody can even contain the disadvantages, and enjoy the advantages of globalization.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Personal Finance is about money, from making money to investing money. Retirement in Asia contains resources on retirement planning.
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