Negative effects


Sidelining of local industries

Agriculture and industries in developed and even developing countries have been sidelined in the interest of keeping a breast with what is happening elsewhere. Competitive advantage no longer plays a major role in deciding what an economy should focus on. This has affected areas such as the Midwest United States


It can be said that globalization is the door that opens up an otherwise resource poor country to the international market. Where a country or nation has little material or physical product harvested or mined from its own soil, an opportunity is seen by large corporations to take advantage of the ―export poverty‖ of such a nation. Where the majority of the earliest occurrences of economic globalization are recorded as being the expansion of businesses and corporate growth, in many poorer nations globalization is actually the result of the foreign businesses investing in the country to take advantage of the lower wage rate: even though investing, by increasing the Capital Stock of the country, increases their wage rate.

One example used by anti-globalization protestors is the use of sweatshops by manufacturers. According to Global Exchange these ―Sweat Shops‖ are widely used by sports shoe manufacturers and mentions one company in particular – Nike. There are factories set up in the poor countries where employees agree to work for low wages. Then if labour laws alter in those countries and stricter rules govern the manufacturing process the factories are closed down and relocated to other nations with more conservative, laissez-faire economic policies


Cultural effects

The internet breaks down cultural boundaries across the world by enabling easy, near-instantaneous communication between people anywhere in a variety of digital forms and media. The Internet is associated with the process of cultural globalization because it allows interaction and communication between people with very different lifestyles and from very different cultures. Photo sharing websites allow interaction even where language would otherwise be a barrier. The internet has however brought with it a wave of new culture that has not gone very well with the more conservative communities. Through the internet, young people have adopted a lifestyle that likens to that of their peers in the western countries, jeopardizing the importance given to traditional / cultural values, This clash has led pundits to discourage the use of the internet beyond what they consider necessary.

Unbalanced Exchange

Globalization has been seen to favor the western countries more than their counterparts in developing countries. The opening up of markets abroad has seen an inflow and outflow of economic, political and cultural values between nations.

However, developing countries have found themselves on the receiving ends of most of these values, somehow creating a demand for more. The end analysis is that most developing countries have taken it upon themselves to solve most of their problems by copying what is done outside and in most cases this has had a financial implication


Electronic commerce refers to the buying and selling of goods and services using electronic networks. E-commerce is creating a new way of doing business in which procedure, sellers and customers are connected using technology

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