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The Disadvantages of Globalization for the American Business

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Globalization is the process by which markets integrate worldwide. Globalization has advantages and its disadvantages. Two years ago, U.S. GDP was growing at a healthy 3.6 percent clip and world GDP growth was somewhat higher, led by China and India. However, over the past couple of quarters, world GDP growth has turned more sluggish, affecting even India and China, while the U.S. economy has significantly slowed and looks like it's going to slow further.

Some may argue that buying cheaper products for Americans to buy is an advantage. That is due to the cheap labor that makes the product. The American workforce will have to compete with foreign workforces who are willing to work for less. By relocating some parts of international supply chains, globalization has been affecting the price of goods, job patterns, and wages almost everywhere. Over the past two years, unemployment inside the United States has risen from 4.6 to 6.1 percent. It is changing the structure of individual economies in ways that affect different groups within those countries differently. In the advanced economies, it is redistributing employment opportunities. As the richer get richer by investing in companies overseas, the poor get poorer, leading to financial problems. Countries like Mexico, Thailand, Indonesia or Brazil got a lot of money from investors who built up new businesses there.

Building products overseas globally puts our business technologies at risk of being copied or stolen, which is in fact happening very rapidly. China and other Asian countries already make most of our high volume commodity products, so America must compete by inventing new products, new technologies, and new industries. Because America has always led the world in new products and new technologies, other countries also see the demand and would want to take over the U.S. market. Their plan is to offer its producers huge subsidies, exporting all of its production, and dumping at low prices to gain market share. Every economy wants to be at the top spot and be the leader. It has given rise to the terrorism and other forms of violence. These acts can cause a huge economic loss.

Some Experts think that globalization is also leading to the incursion of contagious diseases. Deadly diseases like are being spread by travelers. Animal and plant diseases can spread more quickly through globalization as well. The safety regulations and the standards of food preparation are different in all the different countries, in which it may expose a great risk to potential health hazards in America if we are importing these products. Human travel was the key to the rapid growth of SARS and has been key to “stirring” a number of other emergent infections. Influenza, measles, polio, HIV/AIDS are among them as well. Africa is a popular tourist destination and a focus for international work, research, and business travel.

.Natural resources are depleting and are on the verge of becoming extinct. Globalization may lead to environmental problems. Deforestation is practiced owing to the land not available, drastically reducing the forest cover. A company may want to build factories in other countries because environmental laws are not as strict there as they are here in America.

McNerney Jr., J. (2009). Globalization, Energy and the Enviroment. Retrieved September 15, 2015, from

Spence, M. (2011, December 20). Globalization and Unemployment. Retrieved September 15, 2015, from

Collins, M. (2012, January 18). How China Is Stealing Our Secrets. Retrieved September 15, 2015, from

Kimball, A. (2006). Risky Trade. In Risky trade infectious disease in the era of global trade. Burlington, Vermont: Ashgate.

Mendelson, M., Han, P., Vincent, P., Sonnenburg, F., Cramer, J., Loutan, L., . . . Schlagenhauf, P. (2014). Regional Variation in Travel-related Illness acquired in Africa, March 1997–May 2011. Emerg. Infect. Dis. Emerging Infectious Diseases, 20(4), 532-541.…...

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