Why is it that developed economies are facing different challenges in face of globalization? What are some of?

Answer 1

That a very board question and the best why to answer it is say money. I will talk about some factors. Lets look at Mexico. During the renign of president fox and pervious leaders the mind stead was to sell land to the business people. The business people would create bussiness which will improve the nation. The plan backfired time an time again. One factor that was against them was the businessmen want there work done at a large scale. Instead of hiring people the business brought machines from America. Business owners wanted to own huge plots of land. This left the people will the undesired desert. Business owners didn't like paying alot for hired help so they give employees low pay. With the coming of new machines the companies could make their product cheaper than the street vendor. With the coming of Americans came the rise of sweatshops. Sweatshops are places were people work dust till dawn everyday for 3 cents an hour. Dispite what corporations like us to believe no one can live on 3 cents an hour. Gobal trade in another problem. Lets look at India the common shrit maker can make a shirt for $8.00. A company from China can make the same shirt and sell it for $2.00. Do to the low price the Chinesse bussiness will have the advangte and crush the sellers in India.

Answer 2

The biggest problem that developed economies are going to face will be lower wages because of the competing countries.