The negative side of globalization is also about hardpoint , and declining money gaining across countries and international borders,as creditors tight up credit to bothpositive and negative users , depressing aggregate demand which is setting the world economy into a various cycle of income and employment destruction anddownward spiral of the world economy. The ugly side of globalization is whennations and local communities try to escape the vicious cycle of revenue and job declining through similar currency devaluations and by raising more trade barriers that in essential to put an end to globalization and a beginning totrade wars, as was the case in the 1930s in the early period .
In the lastquarter of the century and for the most part of the first decade of thiscentury, the world has seen the good side of globalization. In recent years we are in , the world has seen the badside of globalization . We do hope for the best that the world would not see theugly side of it. Globalization is often criticized fortaking away jobs from domestic companies and workers. After all, the UnitedStates of America cement industry will go out of business if imports from adeveloping country drive down prices of them, even if consumption increases.Small United states cement companies would find it hard to engage in competition and go out ofbusiness, leaving workers unemployed, while the larger United states of America. Cement industry would likely experience a significant protracted decline .Anothercriticism is the high cost of a comparative or absolute advantage to a country’sown well-being if misuse.
For example, China has become a giant worldwideemitter of carbon dioxide thanks to its comparative benefit in manufacturing awide range of products. Other countries may have a comparative benefit inmining certain natural resources – such as crude oil – and mishandle the revenue generated fromthose activities. A final disadvantage of globalization is the increase in wagefor workers, which can hurt the profitability of some companies.
For example,if a developed country has a high competitive advantage in developing software,they may drive up the price of software engineers around the world, which makes itdifficult for foreign companies to compete in the market. Globalization has atremendous impact on international investors, and then when it comes to tradeissues that may impact a country’s exposure to globalization. President DonaldTrump, for example, has taken a protectionist stance when it comes to freetrade under agreements like NAFTA. The elimination of these trade agreements could have anadverse impact on economic growth over the long-term since it eliminatescomparative advantages. Changes to trade policies can also have an impact onindividual sectors.
For example, the United States solar industry has long hada different relationship with China’s solar industry. The U.S. has accusedChina of ‘dumping’ photovoltaic solar panels at unfair prices into the Unitedstated which could lead the U.S. to take action and introduce import tariffsthat could affect the entire solar industry. International investors should becognizant of these globalization-related factors and political risks when making investment decisions. Because globalization is totally inconvertible, we must tell ourselves that the benefits overcome by the the disadvantages.
It depends where we come from, but let us first take a look at whatthese disadvantages are before we form an opinion. we would not reveal the truth in that, but what about theborderline monopoly that the largest companies in the world have created forthemselves? Apple, Exxon, Google, Sony, Samsung etc. Whereas they were once whointroduced products to the world, they are now so big that politics andstrategy are more important than innovation of those products .
The result ofthis is that smaller companies with innovative ideas have an incredibly difficultcompeting. And how can they? If they’re lucky, they’ll be bought out and walkaway with a pay check; if not, they’ll just be crushed, often purposefully, bya competitor that is literally a billion times bigger than themSo now China is the Apple center of the World. They producethe cheapest apple products, which will be producing for more than 50% of theapple products in the world.
A lot ofpeople up and down the East side of the world lost their jobs, but here is the counter argument : China is not allowedto export apples to the U.S. This may be different so soon but for thetime being, China is able to put a lot of people on the East Coast out of businesswithout even selling the product in the same country The lesson of the story isthat another country can do what you do better and dropped you out of your corporationwithout even looking you in the eye.
That is the globalization. But to be fair,the damage we have done to China and the benefits we took advantage of (cheaplabor) are largely more important. Why can we be fair in this matter ? we hardly need to spell this out, but we willadd a thought or two. Globalization has created a global-sized request for fueland industry, and this need has been criticized and ignored to the extent thatthe future of life as we know it has been brought into problem. You may or maynot accept in global warming, but you cannot deny the truth of theconversation. Does the fact that this conversation is happening not saysomething in itself? Have we put our planet intotrouble? Now obviously, yes. The counter argument against this fact is that wecould not possibly have caused so much destruction to our precious planet.
The informationsay in the other way . we have to agree that we have come into over half of the world’s tropicalforests. It is not an easy task to change the current situationof the atmosphere. The atmosphere ends closely60 miles above the surface of the Earth. It is just not that voluminous. It isnot limitless.
It has a limited. Where it ended. It is actually not big and when we work together internationally, eventhe bad side effects of all the amazing things we accomplish are, in a word,internationalized.So it is our duty to make sure that we understand thishuge problem and work together to protect the world and also to raise up asnations to protect our own traditions and culturers.