Carrier is a company which makes air conditioning and heating units. It closed it New York plant. Almost 1200 people lost jobs. The same number of people was hired in Malaysia and Singapore as carrier could pay low over there. The company might have profited, but the people suffered. Similarly IBM announced that it will hire more people and it did. But these people came from India. Microsoft also contributed almost $2 billion to India’s economy. . As employments go outside the country, so does the capital. This has an overall effect on the trade and output also.
Hence globalization as a whole affects the employment, capital, output and trade in a negative way. This is for the developed countries, for the developing countries as the capital, employment is coming inside the country; therefore globalization is beneficial for them. Globalization has many other disadvantages also. It affects the local, federal and state taxes. As there are lesser people with jobs, therefore there are lesser people paying taxes. This affects many other things such as the education system.
Youths in the country are seeing that more people are getting hired from low waged countries rather than their own country. This is having a negative affect on the country’s ability to produce educated youths and skilled workers. One more disadvantage which has not been noticed yet is the materialistic lifestyle people are leading now days. They believe that their road to prosperity starts from the point they start spending more money. The society as a whole now believes that having a big account and the ability to buy expensive branded products means having a better lifestyle.
The family values have begun to diminish and the global culture has penetrated in the societies. The following list summarizes the disadvantages associated with globalization. - Globalization increases the flow of skilled and unskilled labour / employees from the developing nations or the low waged nations to the developed countries. This reduces the employment rate in the developed countries. - Due to the effect of globalization, if one nation’s economy or political situation gets disrupted it will affect the whole world.
For example; when America attacked Iraq and burned their oil wells, the petrol prices all over the world went up. - Due to globalization the corporate nation stats have more influence. However, previously it was civil society organization which had more influence. - Globalization will make few very influential corporations to control the world media. This will effect cultural expression of different nations. - Violence can increase, as people might want to preserve their cultural heritage. - More transportation of diseases from nation to nation.
For example; earlier when travelling was not that common AIDS was confined to Africa only, but with globalization and with better transportations, it has spread all over the world. Similarly, dengue virus has also spread all over the world. - Fossil fuels and energy resources are being used up. In near future this problem will become the cause of many civil wars. - Big corporation and multinational organization will keep on polluting the environment, as they will have a lot of influence and might not follow the rules and regulations.