GCSE Geography - People, Work & Development

Benefits and drawbacks of Globalisation

Instructions:
1. Make your own larger copy of the table below
2. Sort the statements into the appropriate column depending on whether they
illustrate a benefit or drawback of Globalisation.

Benefit of globalisation Drawback of globalisation

Statements:

When TNC’s open factories
and branches in poorer
countries it helps those
countries to develop.
Factories move to where
wage costs are low.
Consequently, they leave
behind many workers
unemployed in the MEDC’s.
TNC’s move most of their
profits back home, so they
don’t really help the
countries where they have
branches.
Some LEDC’s need the
expertise of foreign
companies to help them
exploit their resources. The
companies give people jobs
which helps the economy to
grow.
Cheaper manufacturing
costs have been passed on
to consumers. As a result,
we pay less for the goods
we buy.
Some TNC’s are richer and
more powerful than many
governments.
Consequently, they just
walk in and do what they
want. Later they just move
on when they find a better
deal elsewhere.
Many LEDC’s do not have
strong environmental laws.
As a result, TNC’s exploit
this and move in polluting
the environment.
If companies can move
around freely and export
and import freely, it breaks
down barriers between
nations.
LEDC’s need to develop
their own industries.
However, they do not have
a chance with all the
competition from TNC’s.
It is good for TNC’s as they
are able to locate where
labour is cheap. Therefore,
they are able to make more
money.
Most of the jobs TNC’s
create in LEDC’s tend to be
poorly paid. As a result, the
workers do not learn skills
which will help the country
develop in the future.
TNC’s create many new jobs
in LEDC’s. Even though the
jobs are not highly paid, at
least new jobs are created.
It allows governments to
spread their influence
around the world. It also
enables the country to
collect more taxes if their
companies are doing well
overseas.
Many people feel that
globalisation is eroding the
culture of the countries that
TNC’s move to. Fashion,
food and musical tastes
change.
Globalisation enables
shoppers to have a greater
choice of goods and
services.

Created by D.Drake
http://humanitiesastwiltshire.blogspot.com