Transnational corporations enter local markets with intent to hire local companies, which would carry out those specific operations. But the employment created thereby is dependent on foreign demand since local markets have too few clients interested in specialized products alone. Should the global demand shift, entire industries and even countries will have to go under.
No longer driven by domestic demand, economies take severe blows from unpredictable gales of globalization. But I realize quite perfectly that protectionism is not always a good solution –when local markets are already too narrow, relying on their consumption will be impractical. Closing all doors and windows, figuratively speaking, may be good for a season or two, but is detrimental as a long-term strategy. That is why those looking far ahead talk of the need to maintain a balance between the national and transnational economic developments simply because globalization is quite ambiguous and we cannot foresee all of its underlying trends right now.