Question

Elaborate from this list below who loses from Globalization and International Business:
Select one:
a. Governments lose sovereign rights when they join trade blocks.
b. The environment always loses as businesses pollute more and escape laws.
c. Low-wage earners lose in the developed countries, unless there are substantial re-training programs
d. Small companies lose as large businesses acquire more and more power
e. All of the above have some truth.

Answer 1

Elaborate from this list below who loses from Globalization and International Business:

Correct choice: b. The environment always loses as businesses pollute more and escape laws.

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While all of the statements may have a scope for debate, it is unanimously agreed that much of the impact of globalization has been on the environment. Wealthy countries have become wealthier, by escaping domestic laws, and outsourcing pollution to poor countries. Global consumption, production and thus, pollution, have reached all time highs.

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Governments don't necessarily lose sovereign rights when they join trade blocks, and they gain much more in terms of economic opportunities. Low-wage earners in the developed countries do lose out to outsourcing, but they also get much more opportunities due to globalization. Small companies do face a lot of competition, but they also are now exposed to unlimited potential.