Disadvantages of Globalisation

There are also many drawbacks of globalisation:

• Free Trade can harm developing countries: Developing countries often struggle to compete with the developed countries and therefore the free trade tends to benefit the more developed countries as oppose to the less developed. 

• Environmental costs: Globalisation has increased the usage of non renewable sources of energy and therefore has led to the polluting of the Earth by releasing greenhouse gases. 

• Labour drain: Globalisation enables worker to move more freely and therefore some countries find that it is difficult to hold on to their best skilled workers as they are attracted by higher wages elsewhere. 

• Less Cultural Diversity: Globalisation has led to the increased economic and cultural hegemony. With gloablisation there is arguable less cultural diversity, however it has led to more options for some people. 

• Tax competition and tax avoidance: MNCs like Amazon and Google, can set up offices in different countries like Bermuda and Luxembourg with very low rates of corporation tax and then funnel their profits through these subsidiaries. This means they pay less tax and governments have to increase taxes on VAT and income tax to counter for this.