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Amy asked in Social ScienceEconomics · 6 years ago

how is economic globalization a threat to nation states?

1 Answer

  • 6 years ago
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    Globalisation is the word used by developed countries to describe their commercial colonisation and exploitation of the rest of the world; especially poor countries. It is the modern version of imperialism.

    There is no need now to send an army to invade and annexe a poor country to grab the wealth and natural resources. Instead, encourage McDonalds, Levis, Citibank, Goodfellas, KFC, Proctor&Gamble, Chrysler, Domino, Suzuki, Merck, Otis, Subway and many more "western" companies to gain monopoly power in India, South Africa, Vietnam, Nigeria, Namibia, Burma and so on. They pay minimum wages [US$4.75 a day in India] and give their employees no security; anything to keep costs down and therefore profits high. So it provides employment in poor countries but at subsistence levels. Employees are just one step up from slaves.

    Billions of dollars worth of wealth is drained out of those poor countries every year and repatriated to USA, Germany, France etc to please the shareholders and build up big financial reserves.

    This is achieved by massive advertising to convince poor communities that eating these trashy fast-foods and dressing in these clothes will make them happier and richer: " Americans are."

    The only winners from globalisation are the home countries of the expanding companies; not the poorer countries where branches or subsidiaries are opened. They become poorer, worse fed, more-expensively clothed than they would wish or is desirable.

    It is a one-way expansion of trade and influence; of control, you might say. There is no suggestion that Indian films or Burmese carvings or South African fabrics will be exported to USA and Europe in larger volumes. That isn't the idea, at all. All that matters is that poor countries buy more western goods and succumb to western advertising.

    The result is that these poor countries receive foreign aid for development; but then it goes to importing crazy products from already-rich countries. Their domestic industry cannot compete with the advertising, and there is no incentive for young people to become properly qualified and engage in enterprise or industrial innovation. The big multinational message is this, "You need it? We'll supply all your needs. Just give us back all the aid you received from IMF, IBRD, EU, Washington and the rest."

    So why do poor-country politicians approve these imperialist companies?

    I don't know unless they receive some form of "commission" or "consultancy" payment in return for their support. Sounds like corruption.

    One day the world will realise that globalisation is a scam and those companies will be taxed very heavily; in the poor countries where they are making their big profits.

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