The benefits of globalization are unevenly distributed, and it causes hardship for poorer countries. The gap is widening between developed and developing countries. About two-thirds of the developing countries remain on the margins of the globalization process and are considered "nonglobalizers." Globalization can result in unemployment as businesses relocate operations to lower-cost areas. Many of these outsourced jobs don't pay decent enough wages to lift workers out of poverty.
Individuals are losing jobs and the government have to spend more money of benefits. They collected back less from taxes and VAT. Businesses are cutting back on productions but for some customers is good if they have money because the prices are falling as well as inflation. At the boom stage the GDP (Gross Domestic Product) are the values of
The long-term provision of large quantities of food may force down domestic prices and make matters worse for domestic farmers. It could be considered better for farmers to have a reduction in the subsidies given to farmers in the developed countries. 6. Continued dependency on aid means there is little incentive to be innovative and people develop a welfare mentality. 7.
Countries that have been considered poor and have struggled globally now have the opportunity to sell their low cost labor to the world market. This brings jobs to this struggling countries, even though they are lower paying jobs than the same position
Economic recession has some impact on the drop in sales. With less disposable money, the consumers not only tend to spend less money in purchasing goods, but also become more economical in using cleaning products, replenishing those products at a slower rate than they did before the recession. Besides the economic downturn, the competitive environment provides another impact on the sales. Since more and more private-label products are penetrating the cleaning market with a lower price, the branded products are losing their market share. What’s more, even among the branded products, CleanSpitze has a relatively high price, which makes situation worse.
As a consequence many LDC nations rely on foreign health and economic aid putting them in a situation of unrepayable debt, so even less money can be spent on infrastructure and supporting the economy. As a consequence due to low levels of development FDI is more likely to look elsewhere where the economy and governments and stronger and more stable and where there are educated people. South Korea is not extremely religiously orientated, with half of all adults professing no religion. This could be seen as a reason for preventing development in other nations, as religion and tribalism segregate the nation and can lead to conflicts which damage the
Non-governmental aid does not need to be repaid, unlike with multilateral aid. Multilateral aid leads to the country developing slower, as money they could be spent on further development is spent on repaying debts. Also due to the fact that multilateral aid is based on money, the development gap may narrow slower due to basic needs not being met. However there are also problems with non-governmental aid, these being that due to corruption in some countries aid may not reach the people it is intending to help. Another strategy that could be used to narrow the development gap is trade.
A firm’s performance is negatively impacted because it hires fewer employees, which decreases output and profit. Consumers and taxpayers end up paying for such costs through higher prices. The ability of the United States to stay globally competitive is diminished, thus efforts to cut costs push many companies to send jobs abroad. In the long-term, members of a union also become affected due to changes in the market environment—e.g. new entrants, including foreign competition within the domestic boundaries, so they may have to adapt to such changes by accepting lower wage rates.
o Another argument is that firms in developing countries keep costs down by paying their workers depressed wages and by subjecting them to inhumane work environments. Hence limiting the imports of such goods discourages such exploitation. Employment protection o Engagement in international trade often results in structural unemployment as workers in the contracting sectors may lack the skills to transit to the expanding sectors o Temporary protectionist measures allow such
But I think that if the situation becomes like that, the value of most of the people (or service workers, as he mentioned) to the global companies will be lower, and eventually they will have no job. Unfortunately, those people are the biggest part of the market’s buying power. At some point, when a lot of service workers do not have a job, that means they will not have any income and the buying power in the market will fall rapidly, and when a lot of people cannot afford the products, especially from these big global companies, the income of these companies will be drained to the ground. And if nobody can prevent it from happening, there will be a good chance that another of “The Great Depression” will be happening in our ages. On the other hand, this may be a good opportunity for the third