Disadvantages of Globalization Essay

Custom Student Mr. Teacher ENG 1001-04 27 October 2016

Disadvantages of Globalization

One of the disadvantages of globalization is the over-standardization of products through global branding. Using Emirate Airline to illustrate this point, globalization will means that their services are standardized which aim to serve all customers. They would lose their uniqueness of the business culture after they go global. Also, the over-globalization will result in the lack of creativity and product diversity Hongladarom (2002), Zekos (2004).

Moreover, globalization can also create diseconomies of scale as not all countries have the same growth and economic cycle. For example, Emirate may operate very well in the Middle East and Europe market but expanding into Asia or America market will reduce their profit. This could be due to difficulties of coordinating activities in those new markets or the culture differences. It is also important to note that globalization will cause de-industrialization and high unemployment in the domestic market. Empirical evidences included: Mello (1997), Rodrik (1996), Fagerberg (1994).

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  • Date: 27 October 2016

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