Another negative aspect of globalization that can be closely linked to the settlement of MNCs and FDI in China and the exploitation of its resources is that the returns of the investment placed in China or the money made by the MNCs is fully returned to the home country of the MNC. When MNCs settle in China, they do pay a corporate tax to the Chinese government. The benefits of this to the government is that they will charge them corporate taxes and have jobs in the labor force created. However, the profits made by these MNCs do not retain in China and are sent back to their home country. This implies that the MNCs simply exploit the resources available in China such as cheap labor and low production costs and do not fully return benefits to the Chinese people. This also creates a loss of economic sovereignty and loss of economic security in China as its resources are being used up and it is not …show more content…
However, the impact it has made on China can be considered to be great as it brought China under the limelight in the global economy. Globalization has had many positive and negative ramifications on the Chinese economy. In the short run, it may be so that the negative impacts outweigh the positive impacts, but that is easily debatable. This is because all the negative impacts of globalization can be corrected with economic policies that can be efficiently undertaken by the Chinese government. In this manner, China in overall will be able to enjoy all the benefits of globalization and contribute more to the rest of the world as it continues to grow economically and socially. In today’s world, globalization is an important part of the development and prosperity of each nation and China too should be able to reap from its benefits. Today, as China proudly holds a place in the global economy as the world’s second largest economy and most populated country in the world, it can be said
Fan, G., and X. Zhang. "How Can Developing Countries Benefit from Globalization: The Case of China." Eldis. N.p., n.d. Web. 20 Apr. 2014.
In the far east area of the world, globalization has had many big benefits for creating substantial prosperity for individuals, like how Japan rose out of poverty and created one of the most poerful economies. Japan started out as one of the major isolated nations and over many years the spread of knowledge grew and Japan started opening their door to the rest of the world. Japan started out as a small economic country and didn’t have a very big impact on international trade and new technology but Japan created many legacies that had a huge positive impact, and changed the whole world. Along with the rise of technology, there became problems that effected everyone. With the rise of technology came the world demand for products and to keep up ...
Globalization has caused the world to change. Our country, China has been dramatically changed by globalization. Our people have moved to cities, and our industry has exploded. We have had huge advances in technology along with education improvement. Despite the fact that China has changed so much, there are still many issues that plague it. China faces serious environmental concerns. New diseases and viruses that are not indigenous to China can cause a wide range of sickness in the new area. Despite some of the the improvements in China that are a result of globalization, the negatives that globalization has brought to China are more than the benefits.
Globalization helps many people achieve greatness. But for the majority it brings hardships and struggle. People will be plagued by the effects of globalization and will have a tough time over coming it. We are far from reaching a point where we can say we have sustainable prosperity throughout our world. But before we focus in on sustaining prosperity, we must first reach prosperity and bring it to all corners or the earth.
The essay, “The Noble Feat of Nike” by Johan Norberg basically talks about the effects of Nike going into third world countries, particularly Vietnam. Norberg explains how Nike’s factory gains from being in its desired location, Vietnam. Vietnam being a communist country comes to Nike’s advantage, because if they were located elsewhere they would have to pay workers higher wages and use more of their machines. Workers in these countries are provided with an air conditioned building with regular wages, free meal plans, free medical service, and training/education to operate the machinery within the factory. The workers find all of this beneficial and in their own favor because of the fact their earning double to five times the amount in wages than if they were working outdoors on a farm. This great deal, blinds them to notice the meaning behind the company’s location in Vietnam. The Nike factory was rather clever in making their location in that specific area to gain benefits for Western owners. The catch Nike gains from is simple. The owners pay factory workers only a small monthly sum from what they make selling the shoes to customers. Globalists state that the company doesn’t pull this fast one on the Western population because of our advancements compared to the Eastern countries. Western people would protest and strike to demand better wages for their work, but the people in Eastern countries have no choice but to deal with the injustice in order to support their families and educate their children.
(Bilton et al 1996:5) The process of globalization has certainly had many changing effects to the world we live in; it has also changed the way many factors operate. Globalization is said "to have transformed the structure and scale of human relationships that social, cultural, political, and economic processes now operate at a global scale with a consequent reduction in the significance of other geographical scales. "(The Dictionary of human geography 2004:315) Globalization has had both positive and negative effects on a local, national, international and global level. Globalization often brings benefits at one level which cause negative effects at another, these results and the scale at which they manifest are often uncertain and unpredictable.
Multinational corporations (MNCs) are huge companies that operate in several parts of the world. MNCs are truly to be global in nature as these conduct tasks with no single national emphasis. These corporations have the ability to stimulate the flow of investment, technology and profits in the countries in which their subsidiaries reside. Multinational corporations are mobile in nature, as they tend to establish companies in countries where conditions are most favorable to their business operations. These corporations provide huge employment opportunities. MNCs mostly try to establish themselves in the developed countries as these corporations are always in a search of better employees and better deals from the host government. Whereas government of developing countries don’t have any other option to improve its foreign direct investment thus developing countries welcome Multinational corporations with best possible deals that country can provide so that the problems like unemployment, growth in all the sectors of the market, stabilization of economy, etc. can be fixed.
For instance, the main disadvantage of multinational corporations is the law. The laws and regulations of the multinational company is more strict than other companies, because of the damage degree of the multinational companies more than other companies. In addition, “multinationals will want to produce in ways that are as efficient and as cheap as possible and this may not always be the best environmental practice.” (Paul, 2015) MNCs may earn much money from the host countries, because the corporations may sell high quality of product with less cost, many people may choose to buy the product from the multinational companies which lead the MNCs earn plenty of money and kill the local businesses. This will cause a cash flows
Globalization refers to the absence of barriers that every country had. Yes, it has helped to demolish the walls that separated us .Globalization, which is the process of growing interdependence among every country in this planet, can be seen as a sign of hopeful and better future by some, but for others it represents a huge disaster for the whole world. That’s why we are going to see the negative effect that globalization has on culture then focus on the ethical disadvantage it brought, to finally talk about the damage it did to skilled workers.
It is widely accepted that there are a lot of benefits globalization brought to our life. Firstly, advanced transportation system makes different places of the world closer. Considerable amount of exciting tourists can visit remote villages in the corner of the earth. Secondly, new telecommunication, such as internet and TV, makes people’s common life colorful. Fans in China who are interested in Manchester United can also share their joy with their counterparts in United Kingdom, when the team won a game. Moreover, we can buy the popular products of high quality made in other countries, such as automobiles of Volkswagen and furniture of IKEA. Finally, globalization can lead to cooperation in trade between different countries. Even though globalization can bring so many conveniences to us, we still worry about its severe negative aspects.
Now, before I bash globalization it is some positive I would like to discuss. Globalization is great for the American economy; we can supply the world with our goods and services, which in turn can possible, relieve the deficit we’re in. “Homegrown industries see trade barriers fall and have access to a much wider international market. The growth this generates allows companies to develop new technologies and produce new products and services.” (Buzzle) Also, globalization leads to better relations between countries when they create trade agreements. Globalization does not drain every under-developed company but brings a new era of economic change and the hope of being a world super power to certain nations. “Economic globalization gives governments of developing nation’s access to foreign lending. These funds are used on infrastructure including roads, health car...
It can enhance the development of globalization and indirectly improve different national’s status such as: enhance the China to make it become powerful. All of this can improve the connection and become smaller in the world.
Finally, everything in the world has a positive side and a negative side and globalization is one of them. It is up to us the people of the world to maximize the positive aspect of globalization and minimize its negative aspect.
In 40 years, globalization has become a popular trend in the world. Especially in China, the culture and economy has been influenced by globalization a lot. Shanghai which is one of the biggest and most international cities in China. Because of the policy and the location of Shanghai, this city is becoming a megacity very soon, big business and companies comes and people from different countries live and work here. In China, McDonald and Starbuck are everywhere.
Globalization has been a start of a new modernized era in history. The source states that as an individual you are given prosperity, stability, and also predictability, and also points out that it helps developing countries modernize and catch up with developed countries, and also reduce poverty since new businesses are formed allowing more employment in the country due to the subsidies that wealthier countries give to them. The person who wrote this source is a pro globalist, and has probably experienced the prosperity that was given to them because of the global trading system. His perspective on globalization suggests that globalization is the key to advancing technology, good relations between countries, and is beneficial event in history. One should embrace the global economy as it creates many roads to achieve your goals in your life, and also for the weaker countries that needs support, but to a degree that the government can intervene with the market.