Question

How has the local industry been effected by globalisation

Answer 1

Answer:

Local industries (before globalization) had somehow natural chain of operation:

Education (schools were oriented towards local industries);

Resources (it was somehow easier to establish local industries near natural resources needed for that industry - if resources are local, then you have to care more about sustainability);

Labour (local industries had to make long-term models for labour - jobs were more secure);

Culture (it was more common for local industries to re-distribute part of profit into local community);

Innovation (in-source or in-house innovation).

Now, globalization broke that chain:

If you have excess immigration (and automatisation), you don’t have to invest in education (and labour). If you can import resources from another part of planet - you don’t have to care for self-sustainability, etc. If you can outsource any job to anywhere - you don’t have to care about innovation or culture. This is cost externalizing - mother of all profits. You pay workers minimum wages - they take the risk (of, let’s say medical care) - you have the profit. Your industry creates pollution - local communities will pay for it - you have the profit, etc.

So, local industries are handicapped, because they are organized around communities, and have to care and invest much more than some global corporate entities.

When local industry breaks down, then there is even more cheap labour (immigrants), cheap natural resources, and so on.