The Negative Effects Of Economic Globalization

The creation of quick transportation such as cars, trains and planes as well as the internet has linked much of the world together, and one thing that was linked with the technological advancements was the economy. As globalization continues countries slowly become specialized in the global economy. In which each country is no longer self-sufficient and must rely upon each other to provide for the countries’ needs. Through smaller outlets for economic globalization has occurred in the past through trades with foreign nations, but trading system that covers the great distance and necessary goods that economic globalization is unprecedented meaning that the consequences of economic globalization is truly unknown and will only show as time progress.

Another effect of economic globalization is disproportionate economic growth. The disparity between the growth of developed countries and Asian countries to the sub-Saharan and Latin American countries are constantly growing. The difference between growing disparity is seen as Milner states “East Asian states grew at a rate of 5.6 percent in the 1980s and 6.4 percent in the 1990s, while developed countries grew at 2.5 percent annually and 1.8 percent. Which is a high contrast with the developing countries, as their growth rate were only at 0.7 and 1.7 percent (B1). The difference in economic doesn’t just stop with the annual growth. The Latin American countries and sub-Saharan countries possess weak domestic policies towards the global economy because of the unstable and dictatorial rule that countries in those areas faced following decolonization. The unstable government and lack of disciplined bureaucracy showed it’s to those countries, as South Korea, Mexico, Brazil and Chile all joined the World Trade Organization by 1970 but to its dismay South Korea which was formerly considered a least developed country now make a per capita income greater than 50 percent of the United States while Mexico, Brazil and Chile makes 25 percent of that of the United States