List and explain the factors that are driving the backlash against globalization.

Question

What will be an ideal response?

Answer 1

Open borders have allowed new ideas and technology to flow freely around the globe, accelerating productivity growth and allowing companies to be more competitive than they have been in decades. Yet there is a growing fear on the part of many people that globalization benefits big companies instead of average citizens. Several factors are driving this backlash:

Insecurity: As companies restructure and adapt to market forces, they are churning their workforces. Many operations are being sent overseas, as both blue- and white-collar workers watch their jobs migrate to India, the Philippines, Mexico, Canada, China, Ireland, and elsewhere.
Mistrust: Big, multilateral institutions such as the International Monetary Fund (IMF), the World Bank, and the World Trade Organization are losing their credibility. Their secret decisions made behind closed doors are not acceptable to citizens accustomed to transparent, democratic institutions.
Managing global supply networks: Managing an extended network of relationships requires more transparency, better communication, greater trust, and genuine reciprocity, as client-service-provider relationships shift from adversarial to collaborative, from procurement to partnership.
Priorities: Whether business likes it or not, the environment and also labor standards overseas are genuine issues with growing support among high-tech workers, students, and the young in America. These are new issues on the global agenda, and they won't go away.
Localization requirements: Since 2008, governments have imposed nearly 350 regulations worldwide requiring local sourcing, hiring, or operations. Government-backed development banks require projects to buy or build domestically in exchange for inexpensive financing.