Chapter 8R, Problem 2CTQ

To determine

The worst aspects of globalization.

Explanation of Solution

Globalization can also impact negatively when it benefits nations by making relationships between economies. The following are some worst aspects of globalization:

Unequal economic development: This is the major worst aspect of globalization because even though many countries see faster economic growth as a result of globalization, richer countries frequently gain more from this expansion than emerging countries.

Possibility for increased worldwide recessions: If one country's economy starts to struggle, this can start a chain reaction that can affect many other countries at once, triggering a global financial crisis, the probability of a global recession rises drastically as more and more countries economic systems become interdependent.

Exploitation of cheaper labor markets: Businesses can expand employment and economic prospects in emerging nations, where the cost of labor is frequently lower which exploits labor in those nations.

Job displacement: Instead of creating more jobs, globalization redistributes existing ones by shifting production from high-cost to low-cost nations. This means that as production shifts elsewhere, high-cost nations frequently experience job losses as a result of globalization.

Economics Concept Introduction

Introduction: Globalization refers to the free trade between countries that increase technology, connectivity, and interdependence around the world which results in economic and societal developments.