1. Globalization restrains governments by inducing increased budgetary
pressures.
Globalization involves cross-border trades in making products and services
available for importing and exporting which involves high commodity export
prices.
It follows that the government responds to this by implicating customs fees and
taxes on products and/ or services originating abroad, which I think does not
always receive a favorable response from its citizens depending on how much
they want or need the product/service imported. Either way, the government is
responsible in making sure that the suppliers receive full support in order to keep
the business running, therefore forcing the state to cut resources on subsidies to
do this.
Personally, if the goal is to maintain an industry or business’ market
competitiveness with low prices, then it is an advantage since the increase in
industries with lower costs generally is favorable to the society, however, I think
if the aim is to set up the economy’s standards of being a core country, then the
chances of dominance and being known as a “first world” nation becomes less
likely and more challenging to achieve.
Although consumers locally and overseas value low cost, I don’t think it helps in
some aspects such as in the increase of state income flow since it will have an
impact on the taxes.
When it comes to providing cross-border services, the workforce also tends to
short sell themselves in order to meet and keep up with the competition,
potentially causing them to become overworked and underpaid.
