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One negative effect we see here in the United States is the loss of local jobs. Companies prefer to manufacture products in other countries because they can pay exponentially less money, and pollute much more. Environmental regulations can be very expensive to follow; however, many other countries have more lax restrictions...
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Manufacturing a product in a foreign country doesn't only hurt our local workers; it also has a negative effect on the country they are operating. Many third world countries have such high unemployment that people will take any job they can get, even if it is for 12 cents/hour. It is almost impossible to form labor unions and demand a living wage because there are a hundred other people waiting to take your job...
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