Safety standards are highly ignored in order to save the overall costs and produce cheap goods and products (Collier, Dollar & World Bank, 2002).
The globalization has also intensified and elevated the level of competition due to which job insecurity, in particular has become one of the major determinants of globalization. While comparing the results of the previous and recent researches, one can easily enlighten that few decades back, employment was somewhat a permanent concept amongst the people in general and individuals had job security. However, globalization has completely changed the processes and employees nowadays confront job insecurity due to competitive nature of the job market. Moreover, the escalated level of competition has also reduced and cut down the salaries and additional benefits that the employees used to receive earlier. As an outcome of it, the standard of living has decreased to a great extent (Collier, Dollar & World Bank, 2002).
A very different picture of globalization has also come to the surface, where extensive range of studies have also brought a positive fact to the limelight that globalization has facilitated in increasing the standard of living for many nations around the world, which even includes the developing or third world countries. The living standard is raised in a way that many of the multinational corporations have instituted their manufacturing operations in such developing countries where they can find abundant of skilled and inexpensive labors. This clearly signifies the reality that the lower income level of people is getting more jobs, which is ultimately increasing the level of standards of living (Collier, Dollar & World Bank, 2002).
Another aspect that has come to the forefront from the empirical studies with the occurrence of globalization is the advancements in the technological arena that have been one of the essential reasons for the hindrance for poor economies, and simultaneously benefited the wealthy economic countries. Technological advancement has become one of the most essential and fundamental reasons that help the businesses to increase the speed of their transaction as well as investments and production (James, 2002).
Since wealthier economies have adequate resources as well as financial assistance, hence, they are able to regularly improve their existing technologies and upgraded their systems with the latest technological advancements. On the other hand, the third world states lack resources (in terms of finance) due to which they are often unable to make themselves updated with the most recent technological advancements. Consequently, these countries have to experience low productivity, which eventually begets them to live a life that is below standard and hence poverty level increases (James, 2002).
Since the third world nations are unable to cope up the latest technological advancements, thus they become incapable and less competitive in the global marketplace. This undoubtedly demonstrates the idea that with less technologically advanced products and goods, they are unable to compete with the giants that exists within the international market. Besides, small businesses in the developing world have no option left except to operate their businesses on local levels, which do not enable them to grow and reach their full potentials, as they are not able to compete on the global basis. As an outcome of it, the wealthier economies are harvesting the mainstream benefits of the global competition (James, 2002).
Recent studies with regard to the subject matter of globalization have again brought two sides of globalization to the third world nations. Looking at the positive aspect of globalization, it is encouraging more business ventures to enter the local boundaries of the third world nations, which is increasing their economic conditions. Nevertheless, the dark side of the notion highlights the fact that foreign international corporations are taking over the local businesses as well as industries. This means that the local businesses and industries are neither left with growth in their home country, nor hey have the opportunity to grow and proposer on the international platform, as they are too small to compete on the worldwide basis (James, 2002).
The international organizations do not benefit only on the economic platform of the third world nations, but their heavy investments and commercial activities on a wider platform provide them with the option to play a major role in the political sector as well. The political decisions are very much influenced by such multinational corporations and their increasing activities (James, 2002).
In view of negative impacts of globalization on the third world nations, one of the appalling facets have also come to notice that globalization is not only leaving an effect on the political and economic conditions, but the environmental conditions of many of the third world countries have become vulnerable. In other words, globalization has resulted in adverse environmental splurge in the third world countries. It means that the manufacturing industries that have initiated their operations in the third world nations are becoming the major reasons for waste and pollution (in terms of both land and water) (James, 2002).
Studies and researches have also highlighted the piece of information that the idea of globalization also creates a huge impact on the cultural aspect of the third world country. This can be elucidated from the fact that the introduction of American fast food such as McDonalds, Pizza Hut and so forth have taken over the traditional foods of the local country of the third world and is greatly challenging the local culture. The food is one of the major aspects of the culture, which has become vulnerable to the introduction of such developed nations' cultural foods, as a result of globalization (Haynes, 1999).
Moreover, quite a few studies have also drawn the attention to the fact that the culture of the developed nations have spread to almost every nation of the world, as the world has become a more globalized channel. The ever increasing means and ways of communication and technology have exposed the citizens of the third world nations to the cultures of the North and West through the medium of televisions and internet. This transfer of culture in a negative manner is eroding the local culture and traditions of the third world countries. People are forgetting their customary practices and traditions, as they have enveloped the new culture. This evidently portrays the idea that negative aspects of foreign culture are being transferred, which is impeding the local cultures (Haynes, 1999).
Taking into account the major contemporary global institution, International Monetary Fund (IMF) is one of the financial organizations on a global platform that came into emergence with the fundamental objective to protect and safeguard the financial sector of the world economy. Therefore, this universal institution widely administers and governs the issues pertaining to the financial system of the countries. Through this institution, the financial sector and the world economies was merged to a more universal and global platform as a single factor (Rupert & Solomon, 2006).
But again, the proponents of globalization evidently states the fact that IMF deals with the interests of the richer economies and the poorer economies come under its harsh policies and coercion where the major decisions are in the hands of them and the poor economies are only obliged to fulfill it (Rupert & Solomon, 2006).
In a very similar manner, the World Trade Organization (WTO) is another worldwide institution that oversees and liberalizes the matters related to the international trade. In this regard, the records and studies have highlighted the piece of information that these institutions have developed policies related to the trading of national assets, trade barriers and free trade economies; nonetheless, it is only leveraged by the developed nations of the North (Rupert & Solomon, 2006).
To put the entire thesis report in a nutshell, it can clearly be stated that there is no doubt in the fact that globalization has created positive and constructive influence in many facets of life, but at the same time, it cannot be ignored that globalization has also become an essential element of damage in various elements of life. Globalization has perhaps resulted in an alarming and under examined consequences, predominantly for the third world countries of the South, which is increasingly controlled and directed by the North.
The facets of poverty, unemployment, famine and environmental degradation have been escalated as a major economic concern due to the emergence of globalization. However, globalization on the other hand has also decreased poverty levels in some of the countries. Moreover, it has also been accepted as true by various perceptions that many of the international institutions such as WTO, IMF and World Bank reflects and signifies the interest of the richer economies. This increased concentration on one side of the globe has made them unsuccessful in constructing the economic growth and poverty cutback in many parts of the world that particularly represents the poor economies.
The records and data have clearly indicated the fact that wealthier countries are the major beneficiaries from the alliances that has been created on a global basis, which include free trade, common…