Negative Impact Of Globalization On The US

The focus of globalisation has shifted to economic growth for TNC to avoid tax payments and cut cost, large corporation are too focused on shareholder wealth, which caused inequality. This is where the division of labour comes into perspective; to reduce cost TNC’s have moved their factories to India and Sri Lanka as there is access to minimal costs. However this has led to the exploitation of low expectations in those countries, resulting in long hours in the production sector, to reward shareholders.
The disadvantages of globalisation on a global scale is that, any negative impact on an economy, will have a domino effect on other economies. For example the 2007 housing bubble which affected US caused a negative impact on not only the UK but

Since the subprime crisis in 2007 the US economy is planning to re-regulate its institutions, leading to additional cost for corporations. Another threat is the territorial conflict between China and Japan that threatens to turn into an economic war. Both are growing power nations that deal with many export businesses, if a war does occur exports will have a significant impact on prices, (Mourdoukoutas, 2012). This can cause China and Japan to trigger adverse reaction across the globe. Resulting in other exporters increasing prices since there is no

Many countries have benefited from globalisation, however a minority of counties have been overlooked, such as rural parts of the third world countries; where families still do not have access to the basic needs that developed counties have access to, such as water. Kevin Rudd once said that ‘inequality is an inevitable consequences of capitalism’ (World Economic Forum, 2013). Rudd is stating that capitalism has led to unavoidable inequality where counties mistreat their own people, resulting in less equality around the world. The reason for this is that the world is too focused on production, market and finance dimensions of globalisations rather than the other dimensions such as, culture and labour.
The New Political Economic also had an impact on the third world countries, as the NPC is controlled by the TNC, Multi-national corporations (MNC) and the world media, as these institutions have imposed political reforms under NPC, which are not beneficial to the poorer countries economy. Since the reforms are to in use to enable the MNC and TNC to grow, resulting in a privatisation and downsizing of the state role, resulting in the country being controlled by institution rather than the