Disadvantages Of Globalization

Words: 741
Pages: 3

1. Introduction
In recent decades many world markets increased their interaction with each other and contributed to the global economic growth. Free trade emerged and new technology made transportation and production of goods easier and faster. For example, according to an infographic, The iPhone 6 Supply Chain Saga, published on the website comparecamp.com, the iPhone 6 was designed and researched in USA, assembled in China, received the required materials from 785 suppliers in 31 countries and was sold to customers all around the world.
Altogether globalization increased the welfare for Austria, Germany, United States and many other developed countries. People in these countries can buy jeans and clothes for low prices, because they were
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According to Hamdi (2013, p.142), globalization has positive impacts on many different sectors of developing countries for example the economy, health system, technology and politics. However, there are many drawbacks that can be observed due to globalization. Such as the increased income inequality and global warming, as the result of increased transportation and production ( Borghesi & Vercelli, 2003, p. 78-79). However we will see later on that there are also disadvantages in health and education …show more content…
There are empirical evidences illustrating increasing wages, better working conditions, competition and cooperation in developing countries. Moreover, by opening the trade barriers, the possibility to invest in foreign countries emerged, which created jobs, introduced new technology and improved infrastructure (Lukas,2003, p. 89). Sachs and Warner (1995, p. 36) state in their paper that openness and growth are interconnected. They found, for example, that in the years between 1970 and 1989 developing countries with open economies had an average grow rate of 4.5 percent per year, while countries with closed economies had a grow rate of 0.7 percent per year. The same can be observed in developed