entail the movement of people, goods, capital as well as ideas fromone country, or region to the other due to the enhanced economicintegration resulting from increased trade and investment. The clothswe wear are a perfect example of the extent of globalization. Leadingsweatshops in the U.S and elsewhere in the west are known tooutsource their production to developing countries particularly Chinaand Bangladesh. There are various reasons that push these companiesto contract other countries to produce for them including rawmaterials availability, availability of cheap labor and lessrestrictive laws regarding trade and manufacturing. Well,globalization is there to be embraced, and we cannot overlook it. Toachieve the full benefit of globalization, there is need to establishsome protocol in trade including standardized wage bill, good workingconditions and other health and safety measures. hasbrought many positive effects, but we cannot avoid that it also hassome negative problem to us.
has led to an increased trade between countries. has inessence reduced the barriers to trade as countries today are able todo business more freely with each other. This has improved the livingstandards of many people throughout the world. People have been ableto move and find better jobs across borders receiving high salarieswhich they could not have fetched at their home country.Alternatively, investment by giant companies in developing world forexample in the garment industry in Bangladesh has provided employmentfor millions of people who could otherwise be languishing in poverty(Bloomberg, 2013).
has also led to access of goods and services at affordable prices.Manufacturers have been able to move their production into countrieswhere there is cheap labor and less restrictive policies, henceincrease their production and increase their profit margin whilemaintaining low prices. This has been the case in clothing companieslike Primark and other west based garment companies have outsourcedtheir production to companies in Bangladesh and China to cut thecosts of production. By so doing, these companies have been able tooffer reasonable prices to their clients, while maintaining quality.
However,globalization has not come without hurdles. There are variousnegative effects associated with globalization. First, production indeveloping countries is surrounded by controversy. Due to lack ofproper government involvement or policies on labor issues, workers infactories in such countries are exposed to poor working conditions.They work in buildings which do not meet the necessary standards fora factory. Poor electrical wiring, lack of fire extinguishers or fireexits and other safety measures make the places unsafe for working(Bloomberg, 2013). Consequently several accidents have occurred insuch factories. A factory in Bangladesh making garments for Primarkcollapsed leading to deaths of over 100 people and injuring severalmore (Bloomberg, 2013). In addition several fires have occurred inother factories making garments in Bangladesh leading to deaths ofinnocent workers.
Theconcept of globalization has also led to exploitation in terms ofwage gap. Foreign companies outsourcing their production todeveloping countries lead to poor wages of the workers at the plant.Their living standards do not improve significantly as they usuallywork under slavery like conditions and poor pay. On the contrary, theexecutives at home country of these companies and other employeesreceive considerably high wages (Byline, 2007). The wage gap has thusbeen widened through globalization. Even though some argue that,globalization allows the sourcing of the best employees it plays asignificant role in enhancing wage inequality in the world.
is a positive phenomenon but also have its negative effects. To reapoptimally from globalization, there must be an established protocolof doing business across countries. For example countries likeBangladesh need to strengthen their policies to protect theiremployees. The countries investing in foreign countries on the otherhand need to shift with their standards from home country. Forexample, health and safety in the UK is a very important aspect andhighly regarded by both the government and the people. These values,believes and even policies should be followed everywhere. The poorwages paid to factory workers is also an issue of concern. Thereshould be standardization of wage bill at least to protect the poorworkers.
Inconclusion, globalization is a modern phenomenon and has become partof the modern society. It has led to the expansion of trade acrossthe world as barriers of trade have been reduced significantly. Inaddition, employment has been created as companies outsource theirproduction to countries with availability of labor. However, therehave been negative effects of globalization like the increase in wageinequality among workers. The workers also work under very poor workconditions which have led to loss of lives and ill health asdemonstrated in the Bangladesh cases concerning workers in thegarment industry.
Byline(2007 February 5). The rich get richer: (But that`s no reason toreject globalization). The Economist pg5.
Bloomberg,(2013 April, 29). Factory Collapse Spurs Concern Only If $6 BikinisStay. Retrievedhttp://www.businessoffashion.com/2013/04/factory-collapse-spurs-concern-only-if-6-bikinis-stay-retail.html(Accessed February 26, 2015).