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Demerits of globalization

  • ƒRedistribution of economic power: Globalisation leads to redistribution of economic power at the global level which will gradually translate into a redistribution of political power.
  • ƒProtection of domestic interests: In view of increasing competition from the world, the economies tend to be over protective of domestic interests. This, ironically, leads the economies of the world to move away from one another instead of coming together.
  • ƒDevastation of local producers: The local producers slowly vanish as they are unable to compete with cheap imports.
  • ƒSmall businesses are affected: Due to the cutbacks of public subsidies, de-industrialization and the flood of cheap imports, the small business class is adversely affected.
  • ƒMore favourable to developed economies: The developed economies use the huge population and market potential of the developing economies to maximize their profits with little regard for social and other considerations.
  • ƒIncreased pressure on economies: The fast pace of globalisation leads to increased pressures on economies to readjust their systems structurally and conceptually. This results in culture shocks in economies which may include business culture, regulatory culture, financial culture, etc.

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