Globalization outsourcing to developing countries can cause a drop

Globalization is the process of interaction and integration between people, governments, or companies of different countries, a process supported by the growing role of information technology. Globalization has a number of positive effects such as the creation of a global market and the expansion of foreign trade in the world. Despite these effects, globalization has negative results, which will be the topic of my essay discussion. These consequences include increased job insecurity, price volatility and many more.First, in developed countries, people are insecure at work. Developed countries have provided production jobs and white collar jobs. This means less work for their people. This is because manufacturing is done in countries where the costs of producing goods and wages are lower than in their countries. Most people like accountants, programmers, editors, and scientists have lost their jobs due to outsourcing in cheaper locations like China and India. This is a big issue as the country can lose valuable professional people who can contribute to the development of that country. Also, outsourcing to developing countries can cause a drop in demand for that job, which would badly affect the country’s economy.In addition, globalization has led to price fluctuations. Because of increased competition, developed countries are forced to lower their prices for their products, because other countries like China produce goods at a lower cost that makes the goods cheaper than those produced in the countries developed. So in order for developed countries to preserve their customers, they are forced to lower their commodity prices. This is a disadvantage for them, because it reduces the ability to maintain social welfare in their own countries.Moreover, globalization creates an interdependent economy. The collapse of the United States economy opened up the possibility for foreign companies to buy interest in American companies. Investing in foreign companies creates a global interdependence that can stabilize the economy on a temporary basis. It also has the potential to create a “domino global effect”, which can cause a recession all over the world. This is also true on the contrary. While US companies become interdependent in foreign markets and recession workers in those market places may adversely affect American business.Finally, globalization has created a very competitive environment all over the world. Each country tries to sell as much goods and services as possible at the lowest possible price. Prices are important because the lowest and most affordable prices are among the competitors, the greater the demand, because people always go for what is ultimately cheaper. This has triggered the so-called currency race at the end. This makes every country remove the value of its currency. And this is not the only effect of globalization when value is concerned. Another way for companies to cut costs and sell at the lowest price is by paying lower salaries to their employees by using cheaper fuels that pollute the environment more and basically allow more air pollution by caused global warming to become more intense.Globalization is an inevitable process that has been around for thousands of years and has continued to develop further using all the resources available to make trade more efficient. With all of the negative effects of globalization above, it leads us to conclude that if globalization would have a negative impact on civilizations and places, causing them to be completely destroyed, this event will happen again in the future. The question is only when.