Site Loader

When globalization is introduced to a host country several drawbacks might happen to it and might affect the general livelihood of the local citizens. First of all, allowing imports to flow in en masse will also allow foreign competitors to participate in the nation’s market. This means that they might tempt the population and offer the population with cheaper products. This will cause local businesses to suffer harshly and might even cost them to shut down, which will then in turn lead to unemployment in the nation. It can be seen as a loss for everyone if a huge portion of local business fall, large amounts of people get unemployed, and if the foreign company that introduced the cheap products in the first place has cut down costs by going to the extremes such as by utilizing underpaid or child labor, degrade quality control of the products (which might affect customers), and devastate the environment. The foreign business can also monopolize the market in the host country if it continues to set up operations in the country itself. This will cause all the skilled workers to worked for the foreign business as they might have the funds to afford the best employees and will kill the competition in the host country. While all of these issues do happen and can cause a reasonable person to panic, there are a few benefits that come out of this. Because of the increased competition in the market of the country, this can motivate local businesses to become more efficient and innovate in areas which might win the population back. It will also allow local businesses of a different stage of production to become suppliers for the foreign business to level out the economic damages. Local businesses can also keep their best employees if they establish a wide range of motivational methods in order to keep them which also has lead to more fair pay and benefits for the working population to enjoy.

Post Author: admin


I'm Erica!

Would you like to get a custom essay? How about receiving a customized one?

Check it out