Like any other thing globalization also has several advantages & disadvantages.
It seems globalization is a win-win situation for all parties:
companies entering new markets, opening branches / factories in developing countries due lower labor costs (and often also lower taxes) - gaining higher profits, developing countries increase their BDP, people there got jobs & earn money, consumers in Western World got many goods for less money than ever before.
But ...
Due cheaper labor costs in developing countries (often due no social security & unfair work conditions) Western middle class is losing its jobs in their own countries - since production is migrating to developing countries.
The problem that arises here is: if companies are no more interested in offering new jobs in developed countries that means no jobs for middle class -> less money for general consumption -> less demand -> lower prices -> lower profits -> lower BDP etc.
The poorest class in both regions remains intact, the wealthiest class gains the most, while middle class in Western countries gains benefits in the short run (lower prices due eg. Made in China goods) yet in the long run they are loosers (losing thier jobs due migration of production to developing countries), while middle class in developing countries gains more (jobs + lower prices).
Also: it seems nobody is quite aware that some resources are limited. Imagine China & India being fully developed -> billions of people being able to buy & consume goods & services that are now inaccessible to them. This will result in abnormal rise of demand for raw materials & energy (incl oil, gas & petrol). So since these kind of things are limited in supply, their prices will explode!
And when this happens everybody will be losers.
We in the Western countries are not much aware that good living standard for somebody always has its price: usually resulting in lower standard for some other guy (eg. in 3rd World country, or even for one on the other end of your own hometown).
IMO globalization is driven & been forced by large multinational corporations - and they gain the most from globalization. While the other gains or losses for other parties are just collateral damage - and often not important to corporations, yet big concerns for the states / countries and their governments.
Yes, at this moment I personally can enjoy all the benefits of globalization, yet tomorrow I can lose my job, face higher prices, high social & health security costs etc - all making my life a living hell.
So, the solution is to open my own business & transfer all the operations in China or India.
Anybody interested in investing in my new business?
