Question

Discuss and explain the main negative outcomes of globalisation for national and global economies in 150-300 words.

Answer 1

Economic globalisation, in all participating nations, is rising GDP. At the same time, however, shortages in all national economies are also heating up. That has an effect on the distribution of income. Consequently globalization has adverse effects on the wages of many individuals and regions in the countries concerned. This may lead to rising social tensions with negative effects on economic growth. Social tensions can also contribute to heightened populism. And this populism in effect encourages protectionism with adverse implications for global economic growth

People do have work insecurity in developing countries. People lose their jobs. Developed nations outsourced jobs in manufacturing and the white collar. That means less people work. This is because the development work is outsourced to countries where the manufacturing costs of products and wages are lower than in their countries. They outsourced them to developing countries such as China and India. Most people like accountants, programmers, reporters, and scientists have lost work since they were outsourced to cheaper locations like India.

Globalisation has led to market volatility. This is because other countries like China manufacture goods at a lower cost that makes goods cheaper than those manufactured in developed countries, due to increased demand, developed countries are forced to lower their prices for their products. Therefore, in order to retain their buyers in the developing countries they are forced to lower their product prices. It is a downside for them, because it reduces their country's ability to support social services.