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What disadvantages does economic globalization bring to us?

The disadvantages brought by economic globalization can also be discussed from economy, politics, culture and ecology.

By FralkePublished 3 years ago 5 min read

The current international economic order is still dominated by developed countries. Economic globalization has expanded the overseas markets of developed capitalist countries to the whole world, and the vast number of developing countries have gradually become the export markets of commodities and capital and the purchasing places of raw materials of developed countries, which is conducive to the high monopoly profits of developed capital countries in the world. At the same time, the closer economic ties among countries in the world aggravate the instability of the world economy, while economy is the foundation, politics is the concentrated expression of economy, and culture is the reflection of economy and politics. The disadvantages brought by economic globalization can also be discussed from economy, politics, culture and ecology.

economic

1. The trade:

With the expansion of a country's import and export of goods and services, the types of increasing, foreign economic dependence will be, and the change of the international economic environment may through trade channels to their economic impact, cause economic fluctuation, the international economic implications for the domestic economy, increase the risk of domestic economic instability, enhanced the difficulty of the macroeconomic regulation and control. For example, in the case of Sino-US trade frictions, the range of goods that the US imposes tariffs on China is expanded and the tax rate is increased. Under the pressure of the rising cost of the goods exported to the US, China has to look for a third-party alternative exporter. Is the existing third-party alternative exporter as strong as the external demand of the US? The temporary weakness of external demand affects a country's overall economy, how to stimulate domestic demand? Therefore, it is necessary to adjust the existing macro-control means to achieve the purpose of promoting economic growth and maintaining the balance of international payments. Another example is that some scarce natural resources are highly dependent on supply, and import prices rise, which will lead to economic losses.

Financial: 2.

The global financial crisis started in the 19th century, economic globalization is one of the performance of capital globalization, the speed of global capital flows to speed up the cause of excessive, and excess liquidity, the international financial market volatility, risk accumulation, easy to cause the global financial crisis, and the ability of developing countries to defuse financial risks and the relative lack of experience, It is extremely vulnerable to the impact of the international financial crisis, which will lead to the collapse of the stock market, capital outflow, bank failure, destruction of the credit system, currency devaluation and inflation.

3. Industry:

Under the free trade conditions of economic globalization, it is difficult for developing countries to get development opportunities if their new industries are not yet mature and are challenged by the same enterprises in developed countries. Because equivalent of foreign enterprises in developed countries started early, have relatively mature experience and technology, have the comparative advantage and absolute advantage, to lower the cost of production of goods and services, lower price, easier to occupy the consumer market, new industries in developing countries cannot compete in the face of foreign enterprises, is likely to stagnate, If the growth of new industries cannot make up for the gap between traditional industries, social and technological progress will be hollow, and the industry will fall into the fault crisis.

4. Employment and workers' interests:

Developed countries to reduce the production cost and improve the profit space, to transfer part of the traditional industries to factors of production (Labour and infrastructure) cheaper in developing countries, however, when the investment areas of economic development, industrial structure adjustment, improve the level of wages, labor costs rise, investors will be looking for more cheap labor and raw material, The migration of factories causes a large number of workers to lose their jobs, and they may not adapt to the requirements of the new industry on the quality of workers, thus forming the employment problem.

Moreover, the industry transfer from high-income countries to low-income countries, workers can't get the same task of developing countries and developed countries under the same wage workers, and after the transfer of the factory don't need to meet in high-income countries implement health, safety and environmental standards, to some extent, damage the interests of workers in developing countries.

political

1. The sovereignty:

Economic globalization promotes regional political and economic cooperation. With the deepening of economic globalization, regional cooperation is further deepened. For example, EU, NATO and even WTO all promote regional cooperation through the transfer of sovereignty of the member countries of the organization. Regional cooperation is aimed at enhancing national and regional strength. However, if the degree of sovereignty transfer is not properly handled, it will damage national interests.

2. National Security:

Economic globalization has bred a large number of insecurity factors. Economic crisis and wealth gap may lead to political turmoil. For example, the 1973 oil crisis and trade barriers with Western countries seriously hindered the rapid economic growth of Yugoslavia. To solve these problems, Yugoslavia participated in and received loans from the International Monetary Fund (IMF). Yugoslavia also defaulted on a large amount of debt to the IMF. Moreover, the level of economic development in Yugoslavia was very different, and a large part of the fiscal revenue of the more developed regions in the north was used to subsidize the less developed regions in the south, which also aroused the dissatisfaction of the Slovenes and Croats.

The second problem is the epidemic of drugs. In the American TV series Drug lords, Colombian drug lords hide drugs in export goods and send them to other countries. The influx of drugs is self-evident to harm national security.

And national information security problem, under the background of economic globalization, with the advent of the era of big data, the national information security also suffered huge challenges, technology, international espionage, network attacking has formed a new security risks, all countries take appropriate measures to safeguard the country's information security, which is not allowed to enter the American market, "" huawei And part of the reason "Apple is opening its first data center in Guizhou to comply with Chinese regulations that cloud services must be operated by local companies."

culture

When cultural products of one country, such as movies, music, literary works and even festivals, are accepted by the people of another country, values and ideologies in the corresponding cultural background are exported accordingly, which reduces the resistance for capitalist powers to take the opportunity to promote hegemonism and power politics. For example, the peaceful evolution policy of the United States against the Soviet Union, that is, while containing the socialist countries with the backing of force, it strengthened the means in the fields of politics, economy, culture and ideology, and comprehensively introduced the value of the Western world, so as to accelerate the process of American-style global democratization, which played a role in promoting the upheaval of the Soviet Union.

ecological

Developed countries have shifted some highly polluting and energy-intensive industries to developing countries, and some pollution-intensive enterprises in developed countries have shifted their production bases to developing countries in order to evade strict environmental laws and regulations and reduce environmental protection costs, seriously polluting the ecology of developing countries.

economy

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