Question

What are the negative aspects of globalisation?

Answer the following question in 80 to 100 words:

Explain the negative aspects of globalization.

Answer 1

The negative aspects of globalisation are:

1. Globalization promotes technological adaption to increase productivity but has also resulted in the loss of jobs.
2. Local/small-scale industries cannot withstand competition from the MNCs and may be bought off or shut down.
3. Less developed countries may become dependent on technologically superior countries.
4. It has caused specialization of labour and so there are few employment opportunities for unskilled labour.
5. It has led to an increased gap between rich and poor nations.
6. It may lead to overexploitation of resources and negatively impact the environment.
7. It leads to the harmful effects of consumerism.
8. It may lead to a reduction in social welfare schemes in both developed and developing countries.

Answer 2

1. Increase in unemployment: Although technology is adopted to raise productivity because of globalization, this leads to a large-scale reduction in jobs.
2. Loss of small industries: Local and small enterprises cannot survive the competition from multinational companies (MNCs); consequently they close down or are bought by larger firms.
3. Dependence of developing countries: Less developed or developing countries may become dependent on advanced countries for technology.
4. Problems for unskilled workers: Due to specialization of labour, employment opportunities for unskilled workers have become extremely limited.
5. Economic inequality: Globalization has widened the gap between rich and poor nations.
6. Environmental degradation: Overuse of natural resources has had adverse effects on the environment.
7. Cuts in social welfare programs: There is a likelihood of reduced government spending on social welfare programs in both developed and developing countries.