[nestlekid]

What is the positive and negative impact of globalization on international business?

[nestlekid]

Globalization helps international business grow very fast,but it does make some negative impact on it whether its happens in national or international arena...
But what is it?
Positive impact : low cost worker ?
: open new market ?

I can't think of the negative,so somebody please help me
Thanks

[Rjeeb]

Negative Effects of Globalization

According to Indra De Soysa and Krishna Chaitanya Vadlamannati in "Does Being Bound Together Suffocate, or Liberate? The Effects of Economic, Social, and Political Globalization on Human Rights, 1981-2005", opponents of globalization state it takes away the autonomy of governments to act in a community's interest because it hinders social and economic growth.

With globalization, countries are forced to conform to the dictates of competition that force them to lower social standards in order to be competitive. In other words, the lower class citizens in third world countries affected by globalization do not reap any economic rewards from their society. They are oppressed instead by competition. Krishna and Vadlamannati further state that many of these people find themselves alienated and some may challenge authority that leads to political violence.

Other negative effects of globalization are job insecurity. Increased competition for employment has lead to reductions in wages and lower standards of living worldwide. Globalization as also lead to exploitation of workers, especially children, and globalization has increased human trafficking. Companies that set up industries in other countries cause pollution and usually do not adhere to following basic rights for their employees since there is typically no or few regulations for employer conduct.

Read more at Suite101: Effects of Globalization http://www.suite101.com/content/effects-of-globalization-a341595#ixzz1GhzANA7k

[Sakshi.Sharma]

Globalisation refers to integrating the economy of one country with that of another country. Globalisation foster international business by allowing firms of one country to carry out its operations in another country. For instance: HCL HQ in India started its operations in the U.S. and other foreign countries after the advent of globalisation.