Globalization means the worldwide movement toward economic, financial, trade, communications and ideas in one global marketplace. It refers to economic globalization. Under globalization, people around the world are more connected to each other than before and information and money flow more quickly than former. Globalization does not only affect the international trade, but also affect the cultural exchange.
Nowadays, international business and globalization seem to be a trend. The advantages and disadvantages of globalization have been heavily debated in recent years .Some may claim that the globalization causes the job loses, low wages and exploited workers. On the other hand, others may argue that the people’s living standards overseas will increase. The benefits seem dominate over the drawbacks. So, we support globalization.
Song Corporation is the one of the successful example of globalization. They have very high cost of manufacturing television in Japan as the labour cost and materiel cost are costly. However, the cost is very low in China. Then they determine to move their production lines to China. Sony can earn more profit and creat more job in China.
Problems caused by globalization
There are quite a lot of disadvantages we can find. The followings show the most serious ones and those bring huge affections.
Initially, as corporations seek for cheap labors, they may employ both skilled and unskilled labors from undeveloped or developing countries to developed countries. This may lead to an unbalanced distribution of skilful labor and experts over the world. Shortage of professionals may then happen in the developing countries like Brazil since foreign companies are willing to pay higher than the domestic firms and pull the high-skilled labor from developing to developed countries.
Apart from uneven distribution of workers, globalization brings serious polluting problems which harm our living environment as some corporations without business ethics take advantages of weak regulatory rules in developing countries. For example, the laws and regulations in protecting the environment in China are very limited. Irresponsible and selfish behavior by business operations like pulling harmful substances directly into rivers will probably pollute our environment. China is now having serious pollution in water and air which are mainly the causation of industrial development.
Spread of a materialistic lifestyle and attitude. Globalization makes people markedly more concerned with material things than with spiritual, intellectual, or cultural values, some may give up cultural heritage for the sake of money; On the other hand, there is a greater chance of objection for globalization in an attempt to preserve cultural heritage. Conflicts occur. Moreover, globalization raises the chance of diseases being transported unintentionally between nations. A few years ago, bird flu (H5N1) broke out in Thailand and China and affected most countries in Asia. It is possibly due to the importing and exporting poultry between countries for consumption. It can be seen that international trade makes the transporting of diseases become more risky.
Finally, the chances of civil war and open war between countries will be increased under globalization. Raw materials such as petroleum, is valuable but limited. However it is not evenly distributed in the world. Under globalization, corporations need more raw materials to accomplish mass production. Therefore, powerful countries may assault weak countries to occupy their resources and brings national conflicts.
The unintended consequences of globalization
Globalization would increase incident of crime around the world. Take India as a example, the India government develops India as technology center in Asia deliberately because of globalization, so that high educational and professional people are needed. However, India has the largest...