Drawbacks Of Globalization

2522 Words11 Pages
Introduction Issues concerning globalization have been extensively studied in recent decades, but globalization remains a contemporary topic. For instance, the Transatlantic Trade and Investment Partnership (TTIP), which is currently being negotiated between the European Union and the United States, is a controversial subject and might lead to a new step in the globalization process. Although this process has resulted in global economic development, globalization has affected more than just economics. It has also social dimensions (Gunter & Van der Hoeven, 2004). Because of influences on several areas it is essential to distinguish between the benefits and the drawbacks of globalization. In debates on globalization, migration is a topic that…show more content…
The first part includes all factors that brought particular economies and societies closer together. The second part points to “the increased homogenization of policies and institutions across the world” (Gunter & Van der Hoeven, 2004, p. 7). Globalization supposedly has led to more employment, economic growth, rising incomes, improved living standards, and a wider variety of less expensive goods and services being available to consumers (Preble, 2010). However, opponents allege that not everyone has benefited from this current approach because it conversely marginalized many countries and individuals (Gunter & Van der Hoeven, 2004). Concern about globalization often relates to the social dimension and includes, for instance, employment, wages, social protection, and…show more content…
Considering foreign investments, one can state that most low-income and middle-income countries failed to gather the capital they were hoping for. Measures to attract foreign capital were perceived to be unsuccessful (Gunter & Van der Hoeven, 2004). Other recent developments in international trade and finance go together with the internationalization of production. According to Gunter and Van der Hoeven (2004), the main driving force behind the intensification of international trade is the cross-border production process that is separated into multiple processes that take place in different countries. The previously mentioned trends are part of the current era of globalization (Preble, 2010). This present era, starting in the 1980s, can be characterized by the developments that have led to a changing global economy. Preble (2010) focuses on four key areas of the globalization debate: employment, inequality and poverty, national sovereignty and cultural diversity, and the natural environment. However, Gunter and Van der Hoeven (2004) mention another area in the social dimension, which can also affect the economic situation: (labor) migration. Benefits of

More about Drawbacks Of Globalization

Open Document