However, all such concerns and accusations were given way for wisdom and at present China seem to be the number one exploiter of globalization. Global wealth is currently shifting from less populated western countries to heavily populated Asian countries. In other words, the distribution of global wealth after the introduction of globalization seems to be more logical at present.
Even though globalization helped countries like, India, China, Brazil, Russia etc immensely, same thing cannot be said about poor countries in Africa or Asia. When it introduced initially, the founders of globalization argued that poor countries will be benefitted more from globalization. However, the above argument seems to be illogical after analysing the developments taking place in poor countries. In short, globalization has positive and negative dimensions. This paper critically analyses the negative dimensions of globalization as far as global economy is concerned.
Holst (2007) has mentioned that “economic interpretations of globalization cantered around three forms of capital. financial, productive and commercial (Holst). Dharam Ghai (1997) has pointed out that “free market and private enterprise were the principal mechanisms for promoting economic activities in the sphere of economic globalization” (Ghai, p.1). Free trade or trade without barriers is proclaimed as the major benefit of globalization. However, free trade causes lot of problems also. “Rises in international trade openness have exerted some pressure on policy makers to lower business cost through tax reductions. Tax rate changes improve the international price competitiveness of firms regardless of their level of mobility”(Weiss, p.75). Because of free trade agreements reached between countries as part of the liberalization process, it is difficult for a country to fix the tariff rates for the imported goods or exported goods. For