The Negative Impact Of Globalization On The Global Economy

Introduction

Globalization: a complex and controversial phenomenon that has faded the economic state boundaries inevitably in the past decades mostly due to technological advancements. The phenomenon is usually referred to consist of four waves. The fourth and most resent wave started around year 2000 and was a follow- up to the third wave, starting from the early 1980s, where companies started to outsource production to developing countries. The fourth wave is mostly consisting of China’s rise to be one of the most favored production sites and hence, changing the economy and the political hegemony of the United States. The globalization has increased hugely during the third and fourth waves and national economies in the world have increased co-operation and thus, the world has been integrating into one immense economy system. This has been followed by the debate on the consequences and they have been widely discussed and evaluated in the global political arena.

The role of globalization has been a rather controversial issue in the current political debates. On one hand globalization has had a positive impact on the world economy and the arguments for globalization are not hard to find among scholars and economists. Some of the benefits include increased free movement of labor and international capital flows, which have allowed investors to

There are countries in the world that are poor but nevertheless might be considered as ‘globalizers’ due to (high) levels of trade and low levels of restrictions and protectionism. In contrast, there is a question of whether to consider countries that have still relatively high levels of protectionism and restrictions such as China to be globalizers. This definition and decision of how to measure the phenomena will affect the perception of how benefitting globalization and specifically liberalization of markets has actually