Impacts of the Neoliberalism of Globalization on the World

2021-05-11 12:30:09
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Globalization has also been detrimental global economy since it has led to an increase in the disparities of incomes worldwide  CITATION Pet07 \l 1033 (Dicken, 2007). Once the reduction of tariffs on the imports has been imposed, there will be a reduction in the prices of the imported goods as well as a reduction on the skill-intensive goods. This will, in turn, lead to a reduction in the compensation of the high-skilled workers. On another hand, the price of the exports of low skill-intensive goods will increase leading to an increase in the compensation of the low-skilled workers. This implies that a given economy whose high-skill factors are plenty in supply will experience low rates of inequality as compared to the economy whose high-skill factors are less abundant combining with an increased openness which in turn lead to an increase in the levels of inequality. Market integration is at the heart of globalization, which has spearheaded the emergence of high levels of inequalities, especially in the developing countries.

The increasing global markets have depicted disparities in the market shares by different nations. The escalating economic gains have been linked to the deeper and effective global markets: these markets are not shared equally among the key players in the integrated global market CITATION Llo00 \l 1033 (Gruber, 2000). According to the nature of the global market, only those global economic players with the rightful and adequate assets are rewarded with a comparatively huge global market. This makes those who are well equipped in terms of assets (financial capital, human capital and entrepreneurial skills) to have an upper hand in the global market as compared to those with fewer assets, which leads to inequalities. Due to the integrated market, there is a higher demand for skills worldwide than its supply, leading to an increase in inequalities within various countries. China and India are good examples of the countries whose economies have been hampered by inequalities emanating from the wave of globalization. Some countries, especially from sub-Saharan countries entered the global market with wrong assets making them be vulnerable as far as economy inequalities are concerned.

Globalization has also led to the climate change. Many industries have been set up globally as the way of trying to meet the demands of increasing number of products on the global market CITATION Glo11 \l 1033 (Anon., 2011). This has encouraged the clearing of the fields to set up industries as well as settlement. This has in return encouraged the release and accumulation of the Carbon-dioxide gas in the atmosphere. Globalization has also encouraged high rates of deforestation, increasing the amount of dust in the atmosphere. The increase in the amount of dust, as well as an increase in amounts of carbon dioxide released into the atmosphere, has led to the destruction of the ozone layer. The end result has been an overall increase in the temperatures leading to global warming CITATION Jos02 \l 1033 (Stiglitz, 2002). Industrialization activities have also led to an increase in the release of the various chemical in the atmosphere, enhancing the air pollution. The acidic contents pollutants in the atmosphere through industrial activities have been detrimental to the habitat since they lead to the formation of acidic rainfall which changes physiological and physical conditions of living organisms.

Destruction of the biodiversity is also another negative impact of globalization. Since the inception of globalization, there have been myriad changes in the climate, land use, and biota movement CITATION Jos02 \l 1033 (Stiglitz, 2002). Apparently, industries have embarked on a large-scale production due to a large global market. This can be linked to an increased consumption of products due to their higher demand resulting from the lower prices. The increased consumption has only precipitated escalating rates of production. Human encroachment on natural habitats such as indigenous forests and marine habitats, leading to alteration of the ecosystem. Industries need raw materials to enhance the process of production. The raw materials need means of transportation to move them to the required destination. It follows that transportation requires the use of fuel which is also an agent of pollution as well as playing a part in the depletion of natural resources. All these aspects indicate how globalization has played a major role in the changing and destruction of the biodiversity.

Globalization has also led to an increased cases of dumping especially in the developing countries. CITATION Saj02 \l 1033 (Lahiri & VanDeVeer, 2002). It is common for traders from developed countries to embark on selling products that are obsolete or of low quality to the third world countries, at a comparatively lower price. Dumping is detrimental to the local investors since it encourages unfavorable competition in the local markets. This was as the result of liberalizing international trade. In order to combat dumping, some international agencies have been established with the sole duty of initiating and implementing and antidumping and countervailing duties CITATION Pet07 \l 1033 (Dicken, 2007). The main approach of antidumping policy is through the policy of the price undertaking. Under this approach, exporters are voluntarily expected to revise the pricing of their products to match the local prices of the countries to which the goods are sold to.

Impacts of the Neoliberalism on the sustainable global development.

Neoliberalism has influenced the way the state is governed or operated on the national level. Neoliberalism advocates for the market-oriented economies that that treasure competition and efficiency CITATION Can12 \l 1033 (Smith, 2012). This ha...

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