Negative Impacts Of Globalization

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In the sense of economic, we all know that globalization has affected the world we are living in positively for the fact that it plays very important role in the development of world economy. Foreign Direct Investment is an integral part of the hearth of the economic globalization as it is a major contribution to the development of the countries’ economy. This explains why most developing countries try to reap the benefit from the foreign direct investment by trying to generate the flow into the countries. Most people would claim it is the result of globalization. Yet, whether globalization is a blessing or a curse to human as a whole is still highly doubted. Therefore, some people would say that Even though globalization affects the world’s…show more content…
As we mentioned earlier, globalization promotes sweatshops as it transfers jobs from developed countries to less developed countries-seeking for the services at as low a price as possible. While an influx of foreign companies and foreign capital creates a reduction in overall unemployment and impoverishment, it can also increase the earning gap between those who are educated and those who are not. In the poor country, there are normally a few individuals who manage to make the best use of the new opportunities. It implies that not everyone will take part in an elevation of living standards. Moreover, the rich countries are in a much more beneficial position to make use of the opportunities globalization provides than the poor countries are. Looking from the perspective of a poor country, the opportunity is that they gain access to new markets with more buyers where they can import better technology and practices. However, the real threat is that the same technological advancement that creates some of these jobs also contributes to wealth and income disparities. According to Oxfam's Research Director in London, Duncan Green. To illustrate more information, a recent study by the United Nations University's World Institute for Development Economics Research in Helsinki has found that in 2000, the wealthiest one percent of the world's adults owned 40 percent of its assets. The richest ten percent of adults controlled 85 percent of global wealth. New York University economist Edward Wolff said that most of the wealth were in the United States about 30 percent, another third in Europe, another third in the rich Pacific-Asian region, and the rest of the world has only about ten percent of the world's wealth. These evidences generally show that the net result for the majority of the poor country's population is that they are worse off than they were
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