DANGERS OF GLOBALIZATION – Koushik Kasanagottu

Globalization, or Globalisation, is a modern ongoing process where economies, cultures, and civilizations become intertwined in a global network. This excites the common public and terrifies the scholars. Globalization is a looming threat that threatens countries’ borders which carries terrible consequences.

First of all, the United Nations claims that globalization began in the late nineteenth century when innovations began to prosper. In 1903, the world was in an enormous uproar when the Wright Brothers had their first successful human flight. This sparked globalization because the availability of flight would make it possible for quick and easy interactions globally. Means of transportation is not the only spark that let globalization flourish.As Thomas Friedman, pulitizer prize winner, said in his book The World is Flat, “There are several forces that have flattened the world [globalization] in the modern era including outsourcing, internet and offshoring”

Fruthermore, the earth was not made to hold one giant piece of land that has no boundaries. This is why the ancient Pangaea split into separate continents. However, globalization endangers the world by connecting these separate continents and forming the perilous Pangaea once again (although figuratively speaking). As of now, an industrialist from America can trade with a similar person in China almost effortlessly. This form of free trade is disastrous to local companies because they have to compete with an enormous world. One can argue that there are advantages to this phenomenon because it provides us with a new medium. A medium that promotes trade and commerce by increasing transactions is said to be hugely resourceful. However, this medium increases competition which may be good for the whole but not for the smaller, individual parts.

Globalization promotes competition which breeds failure. In the case of Walmart, leading retailer in western regions, things became disastrous. Walmart promotes globalization yet it destroys competition almost effortlessly. In the year 2001, Walmart was introduced in Tokyo, Japan, and people thought it was a gigantic step towards a global world. However, it turned rotten when Walmart made several Japanese companies go bankrupt. Furthermore, Walmart became Japan’s number one retailer in a matter of months followed by Carrefour, a French retailer. In this case, Walmart’s decision to become global promoted competition between several Japanese companies and then crushed its competition. This concept can be applied to a larger scale, countries themselves. Globalization could cause for whole countries to be in disarray. During ancient times, kingdoms were transformed through wars, alliances, and sometimes through marriage. However, during this modern era, economy and globalization can change countries. In the future, countries will lose trade relationships because of competition from other countries which provide the same resources but cheaper. For example, United States used to import approximately 29% of its oil imports from Mexico and Canada because of their proximity. However, recent data shows that US total oil imports have increased approximately 11.7% from Saudi Arabia alone and the percentage of oil imports from Mexico and Canada has dwindled considerably. This alone shows that globalization has bridged the gap between countries and has made it so that countries have to fight globally for their exports.

In conclusion, no one can debate the fact that globalization has disastrous effects on world order. It breeds competition that is disastrous to companies that cannot afford to handle it.