The first and the foremost snag that globalization creates is that it hinders fair trade and competition. On one hand, the richer countries purchase goods and services from the developed economies, thereby facilitating the flow of foreign exchange and employment to those countries. However, these wealthier countries handicap the poor economies by formulating all the manufacturing and trade policies that the later have to abide by in order to stay in the market. This snatches the policy making autonomy from the developing economies and reduces the chances of fair competition. (Bhagwati, Jagdish N., 2004)Globalization has led the poor countries to produce the goods demanded by developed economies instead of producing to meet their local needs. This might in turn force those economies to meet their local needs by import, thus perturbing their trade balance and pushing them into deficit. Resultantly, the poor get poorer and the rich get richer.Besides, globalization and deindustrialization have resulted in producing “sweat shops” in developed economies characterized by low wages, long working hours, unsafe and unsanitary conditions and child labor. (Amanda, 2006)
China is the worth mentioning country where one can effortlessly observe the tragedies of globalization. China Labour Watch (CLW) conducted an in-depth research of ten exports manufacturing concerns from October 2010 to June 2011 and concluded that nine of them were involved in forcing employees to work overtime for 36 to 160 hours per month, which is in stark disagreement with Chinese Labour Law which states that overtime shouldn’t exceed 36 hours per month. Besides, wages didn’t meet the cost of living of the workers. (CLW, 2011)In Hewlett Packard, production line based in China, workers are required to complete each action in three seconds standing for consecutively for 10 hours per day. Besides, they can have only 10 minutes break during the day for using restrooms or eating or drinking. Moreover, many labour abuses are also reported by researches conducted by various NGOs. In Walmart production line, located in located in China, guards beat workers for turning up late. Indonesian factories contracted by Nike are also reported for limited access to medical care, sexual assault of employees by managers, forced overtime and intensive labour work.