Fear Of Globalization Essay

Economic Globalization and the Fears of the Small

Many authors consider the economic globalization as the pillar of the entire phenomenon over which other components are built. Although the globalization has many complex and very dynamic processes, the particular process that involves strengthening and expanding the relations between the national economies is the key factor to support the globalization in its other domains (Pogge, 2007). The fear of the developing countries that the process of globalization jeopardizes their economic development and that they can end up in some new neocolonialism stems from the fact they are not able to compete effectively on equal basis with the countries of the developed part of the world. Although the

The frequent negative image of these investments is thus easily projected on the image of the globalization, too. The inflow of foreign investments worked only in case of countries with large local markets and even there many social strata were left no better off, but actually poorer than before (Haynes, 2003). The practice of big companies to come, skim and leave, was originally noticed in the UK in late 1970s. Due to the privatization of many state enterprises, a vibrant sector of small groceries set by lay-off workers grew fast, together with networks of many small local suppliers. However, the emergence of large supermarket chains soon wiped off these small family-run businesses and left behind empty shop windows in the centers of many UK cities (Hamlett at al., 2008). That the big businesses do apply predatory strategies indicate some research in US and Canada, too. There, the local communities welcome the big retailers there too. These companies promise that they will purchase locally, which looks very favorable to the local politicians. The local producers, farmers and providers of various services start even jockeying who will extend more favorable terms to the “big partners” Hoping that will become their regular suppliers. However, when settled firmly in the community, the large companies start changing “rules of the game” complaining that the prices of the local suppliers are too high, that they can buy cheaply in China, Asia and so on and so forth. They then solicit much harsher conditions for continuation of the cooperation with the local companies, mainly unusually long credit terms and additionally extending the payments due. Since their former customers, the small retail shops are now out of the business, the local suppliers have no other option but to accept these new terms. The Canadian National Bureau of Competition issued special guide for the local communities how