Globalization on economy

Globalization: The negative effects of globalization on Economy

Md. Mahmudul Hasan

200909081

Ali Ibrahim Al-Zubairi

200770732

Riduanur Qureshi

200909084

Qatar University Post Foundation

English 203-001

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Globalization on economy

According to Halweil (2004), there are around 3 billion consumers living on this

planet earth who survive on less than $2 a day! Cited by (Kinckerbocker, 2004). Today, it

is clearly known how much globalization has helped to enrich the global economy around

the world. Trading between firms and customers has become significantly easier, which

helped to meet the basic needs in different places internationally. However, poor people

who receive less than $2 a day cannot be forgotten. The negative influences of

Globalization on economy are more than the positive effects. The populations of rich

countries are living in high standards while other poor countries are living on low

standards because the rich ignores the poor. There are several negative effects of

globalization on economy, but the main negative effects are unfair distribution, misuse of

the natural resources and unethical activities.

People, who work in simple jobs but require a lot of physical effort, get low

wages. However, it is unfair to distribute salaries compared to the office jobs, which

require less physical effort and more critical thinking. (People who work in simple jobs

but require a lot of physical effort, gets low wages compare to the office jobs, which

require less physical effort and more critical thinking). According to Worldwatch

researcher cited by Knickerbocker (2004), more than 2 billion people, dont have any

simple sanitation, and 1 billion of the worlds population, have a lack of availability of

safe water to use. Moreover, these statistics tell the worlds nations that there is a wide

gap that is rising between poor and rich. What the researcher means by this is that as long

as differences between low level and high level peoples wages are growing, the number

of poor people is growing too. For example, in south Africa this problem is very

noticeable. Furthermore, unfair distribution of income is a problem between individuals

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Globalization on economy

and governments, but it is not the only effect because, another negative effect is the

misuse of natural resources.

Globalization in economy refers to sharing of unprecedented wealth and natural

resources across national boundary to get benefit from the competitive advantage.

Nevertheless resource is finite in a certain quantity to consume. In addition every nation

has a great proportion of economy based on natural resource such as, oil, gas, coal, raw

materials etc. The widespread use of limited resources might rapidly bring negative

effects on economy in the future. Kakabadse, Y. (2003) states that alongside the

advantages through globalization, it has some disregarded environmental defects.

Globalization is negatively impacting the environment through export-oriented

destruction. The removal of ecosystem and extensive deforestation is leading to many

calamities such as, earthquakes, floods and volcanoes. The poor countries are suffering

more from these disasters than the rich countries because of not having proper shelters

and financial supports.

The three main unethical activities which are negatively affecting the economy

are capitalism, unethical activities by corporations and unethical trade agreements. The

economic globalization is based on the capitalist business world which barely cares about

ethics. The get rich quick scheme is actually increasing the gap between poor and rich.

According to the article Ethical dilemmas of globalization (2012), there is a huge gap

between rich and poor in the world. Around 40% of the worlds population is living

below the poverty line and earning 5% of the worlds revenue only. This means the world

is still suffering from poverty despite the rapid growth of the world economy. The large

corporations are practicing unethical activities to increase their profit. The local

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Globalization on economy

companies of the developed nations are moving their factories to the developing counties,

which is causing unemployment problems in the developed nations. For example, the

number of unemployed people has increased in United States because most of their

factories are moved in China. On the other hand, the workers of the developing nations

are working in very bad working conditions and they are also extremely underpaid.

Unfair trade law is another reason to increase the gap between wealthy and poor. Rich

countries are getting favor in the trade agreements because of having authority in the

international trade organizations. The economic globalization would actually benefit

people equally if it is based on proper ethics.

In conclusion, Globalization is harmful for the economy in numerous ways; the

three major effects are unequal distribution, abuse of natural resources and unethical

practices. The global economy is unfairly distributed in terms of wages between

employees. People are misusing the natural resources by overuse and not caring about the

environment. The large corporations are practicing unethical business activities to

maximize their profit which is creating many economic problems in the society. It is

surely going to be a disaster if people continue focusing on the pros and ignore the cons

of economic Globalization. Globally, countries have to decide on the best economic

structure, rather than depending on the capitalism trading system, to help distribute the

income equally to individuals, use natural resources wisely and have control over

unethical activities practiced by corporations.

Word count [797]

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Globalization on economy

References

Ethical dilemmas of globalization. (2012, april 08). Retrieved from

http://ethicalfocus.org/ethical-dilemmas-of-globalization/

Kakabadse, Y. (2003). Is ethics the missing link?. UN Chronicle , 3,

Knickerbocker, B. (2004, January 22). If poor get richer, does world see progress?.
Retrieved from www.csmonitor.com