Darker Sides Of Globalization. Job Losses Vs Outsourcing
One thing that's going swift with the pace of human population growth is indeed Globalization.
Since it was a rise in the 20th century, Globalization has erased the borders of business and has awarded companies with huge success.
Its features; globalization of market and production that has distributed products related to technologies, garments, foods or anything else in every corner of the world.
But besides spreading business all over the world, globalization has also spread its dark shadow in the world.
Job Losses; Major Con Of Globalization
Globalisation has been a major cause of job losses mostly in the developed countries like the U.S and U.K.
As the outsourcing, a process of establishing a new business in foreign countries increased, the institutions started to hire skilled workers from the developing countries who work at a low wage.
Globalization: a cause of job losses (Photo: artnet.com)
For the result, job opportunities available at their own home country disappeared, and numerous unemployed people lost the chance of having a job. Moreover, new technologies like robots replaced humans in manufacturing business.
While Job losses are only one of the cons of globalization, there are more to follow the list of its disadvantages:
- Globalization is thought to be one of the reasons of deepening inequality and poverty.
- International companies are accused of being unfair to their workers on wage.
- Its considered as one of the factors that promote asymmetric effects on rich and poor countries; enriches the rich country and pushes the poor ones to more poverty.
- The anti-globalists claim that the individual cultures are becoming overpowered by Americanization.
- It is also believed to be a help in transferring criminals from various places.
- People consider that globalization leads to the incursion of deadly diseases as travelers, who contain those diseases, may travel in various places.
- It is also stated to be a way of exploiting labors and a cause of ignoring safety standard for manufacturing cheap products.
Outsourcing: Pros Or Just The Same!
While outsourcing has helped on the establishment of new business in foreign countries and given employment to new workers, many people believe it to be one of the pros of globalization.
Outsourcing: first recognized as a business strategy in 1989 and became an essential part of business economics during the 1990s. (Photo: markadair.com)
But when we zoom out in the context of The U.S, outsourcing, it looks to be a drawback of globalization.
Since the very start of the globalization, Americans have lost 6 million jobs and shrunk to the GDP of 11 percent. The outsourced jobs and employees promoted unemployment in the home country, consequently making it a loss in U.S economy.
The lack of job vacancies also introduced competition and made the people reduce their wages. As for the result, living standards of Americans deteriorated along with the productivity.
So, looking from the viewpoint of the people who are suffering as manufacturing workers, the middle class, and professional service workers, the dark sides of globalization appears to outweigh its advantages.