Globalization has three main negative effects on the host country, including exploitation of natural resources,economic stability and social and cultural conflicts. The proposed solutions are. 1. including the cost of pollution and depletion of natural resources in the national income account. 2. using social accounting matrix instead of traditional Input-Output table in the national income account. 3. imposing of tax and regulations against external shock such as rapidly inflow and outflow of hot money. 4. identifying target groups which need help such as the groups living under poverty line, children, women and old ages. 5. preparing in advance to release the negative effects of free trade and investment agreements.
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