However, globalization can also undermine local industries that cannot compete with international giants. Cheap imports may drive domestic producers out of business, leading to job losses and declining industrial capacity. In some regions, globalization has contributed to wage stagnation, rising inequality, and environmental degradation.
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Labor markets are particularly affected. Jobs in manufacturing and textiles have shifted from high-income countries to low-cost regions, creating a “race to the bottom” in labor standards. While this brings employment to some, it can also lead to exploitation and poor working conditions in others.
Local cultures and small businesses also face pressure. The spread of global brands can homogenize consumer behavior, sidelining traditional crafts, foods, and services. Cities around the world increasingly look and feel the same — filled with the same fast-food chains and retail stores.
