Among the adverse effects globalization is that it leads to brain drain from developing to developed nations. Experienced, skilled, and qualified workers from developing nations are enticed by the better remuneration and other fringe benefits that workers from the developing countries receive (Yan, 2018). The higher perks and good working conditions lure them to move to these developed countries, thereby creating a human resource crisis in their countries (Yan, 2018). The local industries in developing countries cannot come up with a remuneration package that may prove attractive to retain these experienced workers.
Another adverse effect of globalization is that it leads to the flooding of cheap quality products from developed countries into developing countries. The reason is that globalization has made it easy for the cross-border movement of goods and services, which may harm struggling economies (Samimi &Jenatabadi, 2014). The impact of these cross-border movements of goods and services is that industries in developing countries may not have local markets for their products, which are generally expensive due to the high production costs. Firms will be forced to retrench workers or even close something that may provide unprecedented challenges to the human resource departments in the developing countries. The reason will be that maintaining staff on low sales volumes may prove a big challenge.
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Globalization has also made it possible for Foreign Direct Investment to take place easily in the developing countries. However, the downside of foreign direct investment is that many of the foreign investment companies come with their expatriates, meaning that they may not offer well-paying job opportunities for the people in the developing countries (Hamdi, 2015). It, therefore, means that the developed countries will be the beneficiaries of these foreign direct investments as most gains go back to them. Expatriates earn more than local employees, something that creates pay disparities for employees of the same firm but having different nationalities (Hamdi, 2015). It is, therefore, likely to lead to tensions among the employees, which may result in hatred among them.
References
Hamdi, F.M. (2015). The impact of globalization on developing countries. Developing Countries Studies, 3 (11) pp 141-145. https://pdfs.semanticscholar.org/97c3/996f95af3b6a0537b8048ccdd5c24bd224df.pdf
Samimi, P., & Jenatabadi, H. S. (2014). Globalization and economic growth: empirical evidence on the role of complementarities. PloS one , 9 (4), e87824.
Yan, J. (2018). Globalization has double sides on developing countries: The benefits and the harm. Journal of Business and Economic Development, 4 (1) pp11-14
