Essay on Globalization: Benefits and Exploitation of Underdeveloped Nations

Multinational corporations from developed countries like China, United Kingdom and the United States of America use globalization to exploit other organizations from the underdeveloped nations. Also, the developing and underdeveloped countries can benefit from globalization, especially in the economic and political sectors. For example, globalization leads to the creation of job opportunities for the people and enables the underdeveloped countries to recuperate from impoverishment. In analogy, the concept of economic openness may not benefit all countries in the world due to differences in political and economic ideologies.

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According to research, globalization provides a lot of advantages to one side of parties because of the desires of the developed countries to exploit the resources of the developing and underdeveloped nations. The exploitation support economic, political, and social developments in the rich countries and alters growth in the exploited nations. The results from the analysis and evaluation of the effects of globalization on economic development have made it easy for business owners and investors to establish appropriate production and marketing strategies; thus, becoming more prosperous in their operations. The prosperity of the business owners and investors results in deterioration of the conditions of both the poor and working people in the underdeveloped countries. According to Collins, the issue of globalization makes the rich countries richer and poor ones poorer in the world. Globalization is important for managers, investors, and business owners, but devastating on the conditions of the workers and poor people.

The cycle involving the rich and poor countries in the world is still unbroken since globalization has polarized exploitation of the underdeveloped countries. The flexibility and mobility of the economic openness in the developed countries have resulted in the transfer of labor from one country to another, therefore reducing the wages provided to the workers. The economic differences among countries force the dominant poor majority countries to accept low wages from the richer multinational corporations. The ability of the poor majority to accept low wages leads to job insecurities and deindustrialization; therefore, interfering with effective economic growth in the exploited countries.

Collins affirms that many American anti-globalists do not support globalization because it is not effective for the working people. The process of globalization does not support people working in the white and blue-collar jobs due to its ability to accelerate deindustrialization in United States of America2. From the critical analysis and evaluation of the impacts of economic and political integration, it is evident that globalization results in double-way inequalities in the underdeveloped regions, especially in African and Asian countries.

The workers from the developed and underdeveloped countries suffer from inequality especially. The challenges of the workers include those sufferings from low labor wages. The rich and minority people from both the underdeveloped and developed countries enjoy inequitable profits from their businesses; therefore, leading to economic disparities in the world. Economic disparities have led to social classes in most parts of their world and interfere with effective interaction in all aspects of life. The financially stable countries and individuals normally benefit from the globalization process while the poor ones will be exploited due to the adoption of inappropriate economic strategies. Economic openness and free trade drag down the capabilities of the underdeveloped countries due to their weaknesses.

Globalization components limit the developing and poor countries to a vicious circle that is characterized by materialistic dependency. In the Dependency Theory, Vincent Ferraro expounds how globalization leads to overdependence and exploitation of the underdeveloped countries. The nature of business transactions is used in Dependency Theory to describe the impacts of globalization on the economies of underdeveloped countries. For example, poor countries export their primary commodities and resources to rich nations for manufacturing processes. The manufactured products are then imported by the underdeveloped countries at the highest prices, therefore exploiting the poor states.

The "Value Added" in the manufacturing of the usable products is always more than those gained from the primary commodities. In this case, poor countries will receive enough earning that equates to the value of their exported commodities, but a lot of capital is used to import the usable products from the developed countries. The developing and underdeveloped countries will always experience impoverishment as a result of the hostility of the global markets. The constant dependence of the poor countries on other nations will also affect their economic growth and survival markets.

Many people in United States of America have opposed globalization because of its exploitation on labor and environmental conditions. Developed countries and multinational corporations focus on the cheap processes used in the production of goods. Exportation is another consideration of the multinational corporations and developed countries in the global market. Safety standards are not taken into consideration because the business owners and investors desire to produce cheap goods. Globalization also increased the cases of human trafficking, especially in the underdeveloped countries2. However, pro-globalists believe that the poor countries are not able to peacefully and effectively democratize. Democracy results after attaining economic development in the country; therefore, improving the globalization process.

The American pro-globalists believe that employment is empowered after bringing free trade and democracy in the underdeveloped countries. Contrarily to the benefits of globalization, the free-trade markets have interfered with the democratization process in the underdeveloped and developing countries. According to Collins2, globalization and democracy must go hand in hand, they should also "be pure business with no colonialist designs2". The reality from the critical analysis and evaluation of the impacts of globalization in the world has shown colonialist practices involve free-trade markets.

Kenan Malik expounds how colonialism has dominated over democracy in the underdeveloped countries. Malik negates democratization that is achieved through colonial designs because it accentuates the call for "overriding democracy and installing technocratic forms of rules." Also, natural resources and wealth are the main drivers that make the rich nations exploit the underdeveloped and developing countries.

Carles Boix emphasizes on how democracy and globalization lead to equality in the world. The distribution of natural resources in different parts of the world contributes to the democratization process because it reduces the overdependence of poor countries on the rich ones. A condition in which both free-trade and economic openness have not yet delivered. According to Boix, "democracy will only be possible if both the winners and losers, that is if all voters and their representatives live under some relative equality of conditions4". Markets should be designed to protect people from exploitation by multinational corporations from developed countries. Democracy is promoted when t...