Living in a digital era will never be confusing to know what globalization is. Go to the search engine and type the word and you will be directed to the meaning that globalization is the speedup movements and exchanges of human beings, goods, services, capital, technologies or cultural practices on this worlds.
Globalization has come not only with the positive effects but also with the negative ones. There are lots of positive sides of globalization that affects most of people’s aspect of life. However, there is also a number of negative effects of globalization that we should not forget its impact to either people’s life or environment.
Globalization simply refers to everything on the globe that grows and changes very rapidly, carrying both a goodness and a badness to all aspects of people’s life and environment. A big question is; is globalization good or bad? The answer is much depending on the situation created as a result of the globalization itself. If it bring a goodness then it is good. And if it brings a badness then it is bad.
Now in this article, we are going to share you the negative effects of globalization that you may realize or even you may not yet they exist and affect the people and environment.
Negative Effects of Globalization
For the developing countries, a number of negative effects touch most of people’s aspect of life including job insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and etc. So let’s find all the details about each of the effects in the following review sections.
Prior to globalization, people work in government sectors and companies based on their skills and capabilities. They receive high salaries to support their living. Job opportunities were available everywhere else for those who had completed colleges and held a degree on hand. When it is time to change the job to get the better one, people would resign and find another position quickly.
However, after the globalization era, there are lots of people around the world seeking for job opportunities. They are highly competing one to another. They are increasing in number, allowing the recruitment take the candidates who are available to be paid less. This way, the employers can easily dismiss a worker or staff and find another one.
In addition to job insecurity, globalization is a blame to the situation of the world unemployment today. Despite the fact that globalization offers a wider job opportunity, in fact, it causes lots of situation leading to the unemployment.
After the globalization era, more and more companies can easily find the ways on how to cut the production cost, improve efficiency and increase the productivity. By the developing technologies supported by the globalization, more companies turn to use machine in running on their production rather than employ workers. This is one of the best ways that the companies do to cut their labor cost and insurance. As a result, unemployment is unavoidable.
In most cases, the unemployment can be very problematic. In the other words, there are lots of problems occurring in the society because of the unemployment. There will more thief treating people in the society, robbers treating the shop owners and more other problem.
Unemployment also leads to poverty since people cannot find a job to earn their living. Some children are unable to get education. Homeless people are everywhere else. Criminals are buzzing around. Finally, chaos does happen because of the unemployment as one of the negative effect of globalization.
Fluctuation in Price
The next negative effect brought by the globalization is the fluctuation in price. In the other words, the price of everything in businesses must deal with the changes. Some industries overseas can get the cheap raw materials and labor. The production cost is cut and the goods are sold in a very low price. Thus, there is an unavoidable price competition that leads to the fluctuation in price.
Due to the globalization in technologies, the companies reach out their customers through the modern ways using the development of technology. Online markets are everywhere else on the globe and the marketing strategies must deal with them. Finally, the successful businesses will land on those who are able to produce high quality products and market them in a low price.
No matter how the World Trade Organization has tried to control the price, companies always compete to each other in producing and marketing their products so that the price is always unstable.
How can a terrorism be listed as one of the negative effects of globalization? Worldwide integration is one of the result of globalization that allows people travel a lot either for studying, visiting relatives, work and access hospital services or just having vacation. However, not all of people are honest. Lots of terrorists come and go to other countries using a worker visa to perform their terrorism and reach their goals. As a result, there is a great crisis in trusting neighbors and other people.
Fluctuation in Currency
International trade commonly uses dollars to buy and sell products and services. In this case, the price of dollar changes day to day especially in the developing countries. This causes the economy and prices for goods and services are imbalance.
In people’s life, way of life is a part of culture that is also much influenced by the globalization. In this case, the western culture spreads quickly and unavoidably replacing the local culture of certain countries especially the developing countries.
Some cultural aspects that change in the countries due to the globalization include the dressing styles, eating habits, language, and more which are all copying the western style. This can be much problematic when the western culture is in contrast with the local culture of a country. Other significant effect of globalization is the language barrier that leads to misunderstanding. This may even cause a chaos.
Spreads of Fast Food Chain
In fact, fats foods are growing very fast due to the globalization. This is one of the western culture that affects the people’s way of life. Nowadays, most people like to buy fast foods for their quick services and cheap prices. This is a really negative effect of globalization since it replaces the home cooked fare as well as local food store. As a result, many of the local restaurant selling local foods are competing a lot and even they are closing their businesses.
In this case, the healthy traditional diets and recipes are already replaced by the sodas, burgers, and other highly-standard processed items that contains lots of fat and sugar leading to obesity and other chronic disease.
It doesn’t stop there. The fast food manufacturers ask the farmers to raise crops and herds of livestock unhealthily for easy processing. Again, it replaces the agricultural diversity to live healthy.
The biggest influence caused by globalization is the trade. In many developing countries, average tariff rates continue raising including those who have just implemented trade reforms. For example, the widespread use of computers, faxes, mobile phones, internet and e-commerce as well as quicker transportation. These are all affecting the trade either international trade or the local trade.
Due to the globalization, there are lots of opportunities opened up in many countries around the world allowing the foreign investors comes for business. This can be replacing the local trade which leads to a problem such as a big delay for the local project.
Well, all of these negative effects of globalization lead us to imagine what if there is no globalization on the globe. These negative effects are also best considered as the cons of globalization at which some people do not like the globalization.
Pros of Globalization
Though our main topic is about the negative effects of globalization, it is considerably important to know the positive effects of globalization which are also the pros of globalization. In this case, there are lots of benefits that people can get due to the globalization.
One of the most significant changes that positively affect people’s life is the use of internet. This way, the use of internet enables the people to easily and quickly access any information worldwide. In economic sectors, the manufacturers can increase the productivity and expand rapidly due to the support given by the foreign investors.
Just because the fast food consumption rises very rapidly doesn’t mean that it is bad at all. For people with the high mobility will be just flexible to do life along with consuming fast food. Due to the limited time to create their own food, buying fast food can be the right solution to reproduce the energy. What about the bad effect on health? People in modern worlds easily find the way of living healthy to balance their unhealthy habits such as having gym regularly, drink juice, consuming multivitamin and etc.
In short, the negative effects of globalization may lead to the worst condition of a person or even for country. However, some positive benefits must also be recognized to positively optimize.