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Opportunities and challenges of globalization - Coggle Diagram
Opportunities and challenges of globalization
Challenges
Globalization can endanger the well-being of people in LEDCs.
Sweatshops
Rana plaza, 1134 people died!
Source:
https://www.ips-journal.eu/topics/economy-and-ecology/the-lethal-price-of-sweatshop-development-6689/
Tazreen factory fire 124 people died!
Image source:
https://www.indiatoday.in/world/asia/story/dhaka-fire-in-bangladesh-112-killed-122465-2012-11-24
Race to the bottom
Poor work conditions
Illegal / substandard safety standards
Some factories lack basic safety features like fire extinguishers and emergency exits, which renders them very dangerous to the workers who must work there.
Source:
https://medium.com/@ssaddlar/dangers-of-sweatshops-e0f6fddd435#:~:text=One%20of%20the%20many%20downsides,the%20safety%20of%20the%20workers
.
Rana Plaza
Extra floors were added to expand the structure beyond its authorized design.
Substandard materials were used to build on the site of a filled-in pond
Source:
https://edition.cnn.com/style/article/rana-plaza-garment-worker-rights-accord/index.html#:~:text=Rana%20Plaza%20collapsed%20because%20substandard,structure%20beyond%20its%20authorized%20design
.
Safety concerns from all the workers were simply dismissed. Workers still didn't evacuate as the factory owners threatened to withhold their wages.
Minimal wage
Only about 72 USD per month
14~16 hours of work a day
Source:
https://waronwant.org/news-analysis/sweatshops-bangladesh#:~:text=As%20well%20as%20earning%20a,same%20morning%20at%207.30am
.
Source:
https://take-profit.org/en/statistics/wages/bangladesh/#:~:text=What%20is%20minimum%20wage%20in,USD%2FMonth)%20in%202023
.
Globalization can present challenges to the environment.
Water pollution
Coca Cola Plachimada plant
Large TNCs can do whatever they want as they have more money and power than local governments.
So far attempts by the local council to shut the plant down have failed. An order by the Perumatty village council cancelling the company's licence to operate, on the grounds that the bottling plant was over-exploiting the water resources, was overruled by the Kerala high court last month.
Source:
https://www.theguardian.com/uk-news/2022/jun/13/poor-working-conditions-persist-in-leicester-garment-factories-finds-survey
Non-renewable energy
Deepwater Horizon oil spill
A report released in September by the Joint Investigation Team of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) and the U.S. Coast Guard noted that, decisions about the concrete core installation process made by BP had been the cause of the failure. The investigation further found that BP and Transocean employees aboard the rig had—while engaged in testing procedures—ignored early indications of a problem and thus missed opportunities to prevent a full-scale blowout.
Source:
https://www.britannica.com/event/Deepwater-Horizon-oil-spill/Cleanup-efforts#ref294127
Globalization can "wipe out" other non-mainstream cultures.
Opportunities
Globalization can lead to technological advancements and innovations
Globalization can spread useful technology that improves well being.
The spread of knowledge and technology across borders has intensified because of globalization.
Nowadays, in a world that has become more integrated, innovations spread faster and through many channels.
For example, as air travel becomes more efficient, it increases the flow of people and technological innovations around the world.
The global spread of technology has enabled scientists and engineers around the world to compete. Nations observe other nations’ innovations and build on them, enabling technology to be developed faster and faster.
Globalization can bring job opportunities and improve the economy.
Globalization has allowed TNCs to relocate their production processes. It allows them to outsource processes to nations with cheaper labor costs. This free flow of labor increases the total number of global jobs, while giving workers in less developed countries job opportunities.
The growth of economies has increased consumerism and eventually, demand for products and services. This has led to an exponential increase in production and job opportunities.
Globalization can make it easier to access foreign cultures.
It leads to a cultural interweaving and a greater mobility of people from one country to another, resulting in a diverse and interconnected global culture.
Globalization also promotes the spread of ideas and goods from culture to culture, allowing for the exchange and appreciation of different cultural practices and traditions . Additionally, globalization encourages individuals to learn about and engage with cultures different from their own, fostering cultural understanding and tolerance.
Globalization and TNCs
TNC = Trans National Corporation
TNCs drive trade and exchange between countries.
TNCs are accelerating globalization.
TNCs present many globalization challenges