Question

globalization and industry are, essentially, the interconnection and interdependence of international borders which includes free trade, immigration, investment, information, and technology. What are some of the consequences?

Answer 1

The interconnection and interdependence of international borders especially through globalization and industry in the form of migration, free trade, investment etc. has its own consequences. Let us look at some of these.

These consequences cannot be explained in a better context than the present COVID pandemic going on. This crisis has bought out a number of issues that need to be adressed.

For instance, when COVID 19 affected the world's second largest economy, China, its affected the manufacturing process there and it disrupted the supply chain everywhere in the world. Free trade does increase the volume of trade but when this falls apart, it also makes nations realise the importance of self reliance.

Another example that can be cited in this question is that of Australian lobster. It relied basically on the exports but when exports took a hit due to the present crisis, fishermen were the worst affected.

Similar examples can be given in case of immigration. Due to interconnectedness, brain drain is happening in developed countries. On the other hand, immigrant workers face all kinds of difficulties in the nations they migrate to. The questions of social security and health care etc. are still unaddressed in their case.

Globalisation in investment can be harmful for the developing countries. This is because MNCs destroy the local businesses and wipe all the profits. The jobs created in the developing countries are also not substantial as compared to the gains to the private companies.

In case of globalisation and information and technology, it also has its own set of demerits. For instance, IT has literally reduced the world in a small village. Now the markets are electronized. If there is a shock at one place to the forces of demand and supply, its effect is seen all around the world. This is what happened in case of 2008 Financial crisis.

You can cite multiple examples for each.