Negative Effects of Global Capitalism on Small Countries and Organizations

Running head: GLOBALISATION
GLOBALISATION
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1GLOBALISATION
Introduction
Global capitalism is mainly based on the new stage which is related to the proper
evolution of the capitalism based activities of the countries. This process is mainly based on
rise of the transnational capitalist type of class and transnational capital as well. Neo-
liberalism is on the defined as the laissez-faire style of economic liberalism based process.
The process mainly includes different factors like, austerity, privatization and the free trade
based policies. These factors have been able to increase of different manufacturing and
production based activities of the global organizations (Krugman 2017).
The different global organizations have thereby started outsourcing the production
based activities to the developing countries in order to reduce their costs in an effective
manner. The essay will be based on the negative effects of these activities of the
organizations on different countries.
Effect of global capitalism on small group of organizations and countries
The global capitalism has been able to affect the different countries all over the world.
The activities have been able to facilitate the global organizations which operate in the
developed countries like USA. On the other hand, the countries like India and China have
faced huge issues based on the production based facilities that have been set up in the
developing countries. The transnational or the global organizations are able to provide huge
levels of benefits to the developed countries (Potrafke 2015).
These organizations have outsourced their production based facilities in order to
reduce the costs based on the production related activities. These activities have benefitted
the organizations in a positive manner. However, the small countries have been affected in an
adverse manner due to the environmental or the exploitative nature issues. The use of cheap