Written by Hannah Hosein, Grade 12 Student, International Business
Globalization is the expansion of a business on an international scale. From an entrepreneurial perspective, it may seem beneficial; however, the effects it has on job opportunities and the competition that it creates between countries is undoubtedly more negative and disadvantageous.
Firstly, globalization creates a negative impact on job opportunities within both the United States of America and less wealthy countries. Although globalization is successful in creating more job opportunities in lower-income and less developed nations, it also comes with repercussions that negatively affect the more dominant countries’ citizens. As more positions are being relocated, the amount of jobs that are typically located in the United States, are being taken away and given to others who can complete the same tasks for less pay. Essentially, this results in a decrease in job opportunities, rendering specifically low-paid American and Canadian workers unemployed. Consequently, this not only affects the overall well-being of the working class, but also affects the country’s GDP, as with every 1% increase in unemployment, the GDP will decrease by 2%. Furthermore, these overseas workers are benefited as they receive an increase in job opportunities since they are employed by a more economically dominant nation; however, the amount that they are paid is unjust. These workers earn a fraction of the wage the workers in a more developed country would receive for the same tasks. For instance, sweatshop workers may be paid as little as 3 cents an hour, and often work 100 hours per week in inhumane conditions. This is resulting in the exploitation of workers causing these employees to be underpaid, making it more difficult to support themselves nor their families. In comparison, it is an unfair and unethical choice to allow globalization within these industries that are more than capable to support their own needs.
Secondly, globalization creates unnecessary competition between countries. From a cultural perspective, when incorporating a less developed region or country into the expansion of a business, it creates the possibility for the wealthier country to overpower the other. Due to the integration of more western products, media, and technology, the increase in cultural homogeneity becomes more prominent within a nation’s society. Over time, this can dominate the native and cultural industries of the country, decreasing individuality and cultural diversity. Starbucks, for instance, grew from a single location to over 20,000 stores in 60 countries – meaning that no matter where the coffee is made, it is identical, taking away from the appeal of foreign beans and specialty coffee. This concept creates competition between the more wealthy and less wealthy countries to ensure the success of their local businesses while competing for consumers while the bigger companies are integrated into the country’s society. In addition, as companies in larger countries grow and expand into less powerful nations, it can result in an economic gap, making globalization advantageous to some, but detrimental to others. For instance, the U.S. has branched out to several lower-income countries, increasing their job opportunities and working wages. Although this may appear as a benefit for the smaller countries, this leaves them reliant on America financially. As they become increasingly dependent on the more successful country, they leave themselves with no room to grow economically and won’t be able to support themselves individually. Continuing with globalization increases inequality by making the rich richer and the poor poorer, making it next to impossible to compete with the bigger industries.
Ultimately, the effect that globalization has on job opportunities, as well as the competition it creates between nations is certainly negative and far from beneficial for both nations and their citizens.