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Globalization is an economic, political, and sociocultural phenomenon because of its nature to be interdependent and multifaceted. Therefore, MNCs and businesses avoid recruiting internally. It became crucial for the companies to adapt quickly to those fluctuations in order to withstand them firmly. Outsourcing jobs was a byproduct of market fluctuation. A surge in job demand has reduced the wages and defaced the quality of living in many regions. For example, if an underdeveloped country is able to get a job done at a lower wage, the developed country from which the job is outsourced will lose employment chances. While it also increases job opportunities, it really depends on which part of the world one lives in. Job insecurity is another threat of globalization due to outsourcing and international competition. Also, the emission of industrial pollutants could affect the atmosphere and increase ozone depletion (Kukreja, 2021). Additionally, factories and industrial plants make use of toxic chemicals during their manufacturing process which raises environmental concerns. Over the course of time, some of the resources might go extinct which poses a greater threat to mankind. The problem behind this mechanism is the inability to give enough time for the resources to regenerate. Global demand for products and goods increases the rate of production, resulting in the quick depletion of natural resources. Even in the case of a disagreement, the countries might end up finding a common ground to resolve their differences in a non-violent way.ĭestruction of natural resources and the environment is one of the powerful downsides of globalization. Therefore, a rivalry is less likely to emerge. Countries rely on one another for their growth. Dependency is one of the common attributes of globalization. Lastly, globalization promotes world unity and peace which will keep terrorism at bay.
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Adopting new technologies becomes essential for companies to stand out among the crowd and increase their revenue (Kukreja, 2021). Additionally, technological developments also increase the competition between businesses. With the faster transmission of foreign data and innovations, life is made easier in every aspect such as healthcare, science, agriculture, and transportation. Television and media are two powerful components that influence international commonality by assisting people from various walks of life to be constantly connected. Innovations, technology, and knowledge from one country are easily accessible to another country with the help of globalization. Furthermore, MNCs also offer job opportunities that escalate the income and expenditure of a country. The country can benefit from increased tax revenue. For example, multinational companies are generally high taxpayers. They also have an impact on the economy of a country. Multinational companies also represent one of the primary elements of globalization – interconnectedness (Kukreja, 2021). Microsoft, Walmart, Apple, and Nike are some examples of globally successful multinational ventures.
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Cross-border transactions and overseas expansion have also made multinational companies economically dominant. Through a globe-spanning network of communication and trade, multinational firms emerged and took over the world. Additionally, goods are sold at a cheaper price to consumers because companies are able to manufacture products in locations where their production cost is substantially inexpensive due to globalization. On the other hand, consumers have access to products that are not available in their country. Businesses and companies have a wider consumer base in the global market, thereby increasing their revenue. One of the most positive effects of globalization is international trade. Therefore, it is important to identify the downsides and mitigate or eliminate its effects on the regions that are negatively impacted instead of trying to efface it because globalization has more benefits than downsides. While globalization is not without downsides, its positive impact supersedes the disadvantages associated with the phenomenon. It reduced poverty, enhanced international trade, improved the communication between various regions, and increased job opportunities. Globalization is an ineradicable and powerful phenomenon that has contributed to the growth of the world at large.