Advantages:
- Makes governments more aware of the global impact of poor environmental policy.
- Promotes ethical behavior by MNCs in the area of wages, working conditions and pollution abatement, since they are vulnerable to global media coverage of their operations, and fear loss of market share resulting from negative publicity.
- Lifts all boats in the water – three billion people have been already raised out of poverty due to globalization.
- Improves the condition of women and reduces the wage gap between developed and developing nations.
- Creates more jobs for a nation overall, since it is more than offsets the loss of jobs in less competitive sectors by the creation of jobs in more competitive sectors.
- Promotes intense competition among multinational corporations (MNCs) and also makes local companies to be more competitive internationally.
Disadvantages:
- Triumph of giant companies who have the political and financial power to drive small rivals out of business.
- Destroys the environment by promoting environmentally unsustainable technologies.
- Often leads to a “race to the bottom” in labor and environmental standards as poor countries compete with each other in an attempt to attract MNCs by relaxing laws and lowering standards in order to get jobs for their citizens.
- Destroys jobs in wealthy and advanced economies as MNCs close plants in such countries and open them in developing countries where wages are lower.
- Widens the gap between rich and poor both within and between nations.
- May lead to political, economic, and cultural Americanization of the world.
- Shifts power from national governments towards undemocratic supranational institutions (e.g., the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), the European Union (EU), etc.)
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