IMPACTS OF GLOBALIZATION

Globalization is an age-old phenomenon which has been taking place

for centuries now. We can experience it so profoundly these days
because of its increased pace. The penetration of technology and new
economic structures are leading to an increased interaction between
people. As with other things there have been both positive and negative
impacts due to it as follows.
1. Exploitation of developing countries
Globalization is in most case working in the interest of the richest
countries which continue to dominate the world trade and at the
expense of developing nations whose role in the world trade is to
provide the north and the south with cheap labors and raw
materials.
2. Unemployment and ousting of local businesses.
There is no guarantee that the wealth from the inward investment
will benefit the local community. Often, profits are sent back to
MEDCs where the MNCs is based. Multinational companies, with
their massive economies of scale may drive the local companies
out of the business. If it becomes cheaper to operate in another
country the MNC might close down the factory and make local
people redundant.
3.