Introduction This paper discusses the effects of globalization in regards to economic, social, and environmental realms. It also looks critically at the shift of ownership of organizations from the public sector to the private sector. In addition, it discusses the benefits and disadvantages of privatization of institutions in detail. To begin with, globalization refers to the integration of economies through its institutions into a single entity that can achieve the goal of fighting poverty in the weaker economies. Although there are many benefits of globalization of industries, there is also a negative impact on the economic, social, and environmental spheres. On the other hand, privatization of institutions refers to the change of ownership of organizations from the government to the private sector. In fact, privatization has its own implications and externalities, which shall form the basis of this paper’s discussion. Economic effects of globalization Globalization and privatization of industries has both positive and negative effects on economies. One of the positive effects to globalise is the increased living standards. This is because with increased integration of governments, the developing countries get the chance to develop through international lending, and assistance. With the availability of funds, it is possible to have social services to the people, health care services, education, and all the essential services provided to the people at the local level. Secondly, the developing nations have the access of new markets, which were not available to the people before. The access of the free markets helps companies to trade with companies in the international market (Baldwin & Robert 123). International trade also helps to curb the widening gap between the poor and the rich. Due to increased access of markets over a long period, it is possible to have a rise in education levels and increased salaries. There will also be sustainable development, which is associated with elevation, and the rise of standards of living. Although the change in the standards of living will not affect/benefit everyone, it will be possible for the poor nations to become richer. Due to creation of new jobs, it will be possible to have an increase in the wealth and incomes of the people in terms of wealth creation (Taylor 76). On the negative side, globalization leads to decreased employment levels. Skilled workers will be able to get new jobs thus having improvements in standards of living. Conversely, the presence of new technologies lessens unskilled labor. This is because manufacturing companies can use the former in petty manufacturing jobs. Therefore, social services become less, leading to lack of jobs for the people who do not have skilled form of labor. Globalization has effects on the economies due to the destruction of the macroeconomic policies that form the economic plans of many countries. The effect of financial integration on the growth of nations is massive. Empirical evidence shows that the relationship caused by the integration of industries can lead to growth and economic stability of the weak economies in the integration. On the other hand, lit