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Globalization Disadvantages

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News Analysis: The gap between poor and rich regions in Europe is widening
In the beginning of the article itself we find out that the financial crisis and European debt crisis has caused the gap between poor and rich regions in Europe to expand. Globalization is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large outside the home market. Therefore, organizations start operating on an international scale. Advantages of globalization include access to new technology, markets and products. It also provides more employment, better standards of living, stable inflation and better welfare. Disadvantages include higher …show more content…

With no tariffs the PIIGS don’t make any extra funds and so the public funds remain tight in the long term. Sometimes duties may be eliminated on the day of the agreement or phased out over time which can turn out being unfavorable for certain countries lacking funds for public spending and welfare benefits. Suppliers just end up being there with no assurance of what can happen next. As for the employees in the long term, deindustrialization which is a decline in industrial activity in a region or economy can cause considerable job losses. Also in the long term, the multinational companies can exploit labor at a large scale and can be very stressful for the employees. Also according to the article many civil servants stopped serving and the welfare benefits are decreased thus austerity plays a significant role. These kind of factors discourage the employees. As for the customers, in the short term, globalization causes the tastes and preferences to change very frequently which can be frustrating for some people. Also the social stratification changes as middle class might be considered lower class at some place and something else somewhere …show more content…

This can be very problematic. Similarly, inequality of individual well-being has an adverse effect on life gratification significantly greater than does income inequality. Social trust, which has been shown to support subjective well-being both directly and indirectly, is more fully explained by well-being inequality than by income inequality. Income redistribution will not be enough. Therefore, for reducing inequality, using government policies to help the most dissatisfied will give the best

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