Negative Aspects of Globalization
Globalization is a cultural and economic trend that seems inevitable and unstoppable, but it is not without problems. In general, economic expansion seeks the lowest costs of raw materials and cheapest labor cost, but it frequently overlooks the broader impact that dynamics of globalizing have on socioeconomic status of developing societies. The countries that adopt policies to facilitate globalization have to consider that integration into a global society is not always painless or smooth. The most common complaints against globalization are that it exacerbates the gap between poor and rich both within and among countries and undermines labor standards (Griswold, 2000). Apter (2002, p.13) stated: “The truth is that if one can’t live with globalization, one can’t live without it either. Its consequences are many and diverse. But the devil is in details”. An analysis of globalization’s impact on economies of developing countries points out that globalization is a negative trend that widens the gap between wealthy and poor, exploits resources, and makes developing countries more depressed and marginalized.
Harmful Impact of Globalization on Developing Countries
Negative Trends, Deception, and Role of Multinational Companies
Globalization facilitates integration of economies in terms not only of services and goods, but of technology, information, and ideas (Birdsall, 1999). Currently, the economies of developed industrialized countries are very much growth driven. In order to stay competitive and outperform competitors, they need new markets, more customers, and greater market share. For developed industries of the western world, saturated domestic markets provide relatively little opportunity for growth and expansion. Therefore, world capitalists look for new sources of raw materials, cheap labor cost, and markets where their products and services will be in higher demand. Outperforming competitors and winning at all costs becomes the task number one (Glyn, 2007). Big multinational enterprises (MNEs) are the ones who benefit the most from globalization since their resources allow them to spread their operation overseas with incredible speed and relative ease. Moreover, large corporations’ spread abroad and the expansion are vital to their growth and development. To earn the most while spending and investing the least is not always the most beneficial strategy for environment and society at large. Between winning at any cost and being pushed out of business by competitors, most of the large businesses will try to win at any cost (Glyn, 2007). In the case when global market is saturated with capitalist ventures that seek to increase profit, minimize expenses and win at any price the global trade seems to be driven by individuals with wrong motives.
In his book Global Business Today, Charles Hill (2013) claims that multinational companies dramatically reshaped the earth and he touches many aspects of...