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DISADVANTAGES OF GLOBALIZATION:

“It has been said that arguing against globalization is like arguing against the laws of gravity” –
Kofi Annan, Former Secretary General of the United Nations

Globalization has impacted nearly every aspect of modern life. Non-economists and the wide
public expect the costs associated with globalization to outweigh the benefits, especially in the
short-run. Less wealthy countries from those among the industrialized nations may not have the
same highly-accentuated beneficial effect from globalization as more wealthy countries,
measured by GDP per capita etc. Although free trade increases opportunities for international
trade, it also increases the risk of failure for smaller companies that cannot compete globally.
Additionally, free trade may drive up production and labor costs, including higher wages for
more skilled workforce.

Domestic industries in some countries may be endangered due to comparative or absolute


advantage of other countries in specific industries. Another possible danger and harmful effect is
the overuse and abuse of natural resources to meet new higher demands in the production of
goods.
(The Globalization Debate)

 Globalisation operates mostly in the interests of the richest countries, which continue to
dominate world trade at the expense of developing countries. The role of LEDCs in the
world market is mostly to provide the North and West with cheap labour and raw materials

 Globalisation is viewed by many as a threat to the world's cultural diversity. It is feared it


might drown out local economies, traditions and languages and simply re-cast the whole
world in the mould of the capitalist North and West. An example of this is that a Hollywood
film is far more likely to be successful worldwide than one made in India or China, which
also have thriving film industries.(article published by BBC)

 The benefits of globalization are not universal. The rich are getting richer and the poor are
becoming poorer.
 Outsourcing, while it provides jobs to a population in one country, takes away those jobs
from another country, leaving many without opportunities

 Although different cultures are able to interact and share their ideas and innovations,
everything is beginning to meld, and their becomes a loss of tradition and culture.

 Fast food chains, such as McDonalds and Burger King, are spreading in the developing
world. Meaning more consumption of junk foods from these joints resulting in an adverse
impact on people’s health.