The potential implications of globalization have an impact not just on the political and economic domains, but also on the social as well as cultural realm. Consequences of Globalization :īefore arriving at definitive conclusions about the consequences of globalization, a great deal of empirical work needs to be undertaken. States at no point of time agree to surrender their sovereignty how much ever undermined and are always clear with priorities and always keep an eye on their security conditions as well.
Resorting to free trade is no solution to bring about harmony.Įconomic globalization cannot be equated with the materialization of global community. Globalization also resulted in fragmentation of societies and rise of movements for ethnic, nationalistic and religious identities. Though revolutions have brought people together, it is not sufficient enough to build a global community. Western countries, bitterness towards the immigrants in the Gulf by the local people are all examples of this globalization. There seems to be an increase in social conflicts owing to the movement of labour to industrialized countries of the West or to the oil rich countries of the Gulf Racism in Germany and other These social and political consequences of globalization are felt world over, but are more obvious in the third world countries.Īnother crucial effect of globalization is labour migration. While the labour in developed countries fear losing their jobs, labour in developing countries hope to see an increase in employment opportunities.īut the concept of free market is compelling the governments of the third world countries to reduce the costs of social security and public welfare, resulting in reduction of employment prospects. Hitherto this problem was met by the state in the name of protectionism but globalization with its free market ideology, reduced the scope for state intervention. But with technological breakthrough, the need for human labour is no longer required causing an untold increase in unemployment and underemployment. Earlier, labour remained an important factor of production. Globalization provided for the movement of industries from their old centers in a rich country with high labour costs to that of a completely new country with abundant cheap labour.