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Globalization can provide both benefits and challenges for developed and developing countries. It encourages international trade, investment, and specialization which can lower costs and prices for consumers. Developing countries may gain employment and growth from inward investment. However, globalization also makes developing countries vulnerable to more international competition and could encourage the migration of skilled workers abroad. It may also be difficult for developing nations to build new industries and diversify their economies away from primary goods. Overall, while globalization can stimulate growth, there are risks that some countries may struggle to compete or fully participate in the global economy.
Globalization can provide both benefits and challenges for developed and developing countries. It encourages international trade, investment, and specialization which can lower costs and prices for consumers. Developing countries may gain employment and growth from inward investment. However, globalization also makes developing countries vulnerable to more international competition and could encourage the migration of skilled workers abroad. It may also be difficult for developing nations to build new industries and diversify their economies away from primary goods. Overall, while globalization can stimulate growth, there are risks that some countries may struggle to compete or fully participate in the global economy.
Globalization can provide both benefits and challenges for developed and developing countries. It encourages international trade, investment, and specialization which can lower costs and prices for consumers. Developing countries may gain employment and growth from inward investment. However, globalization also makes developing countries vulnerable to more international competition and could encourage the migration of skilled workers abroad. It may also be difficult for developing nations to build new industries and diversify their economies away from primary goods. Overall, while globalization can stimulate growth, there are risks that some countries may struggle to compete or fully participate in the global economy.
Multi-national companies do business across the world Companies like MacDonalds can be seen on high streets in most cities Goods are produced in one country and sold in many others A global economy means free trade between countries This can strengthen political relationships Globaliation can also create opportunities for employment !t encourages in"estment in less de"eloped countries !t could reduce po"erty in the de"eloping world Negatives of Globalization Globalization is not always beneficial to everyone Companies can move to countries where labour is cheap This creates redundancies, or job losses Employees cannot be confident that they have stable jobs Companies sometimes exploit their employees in developing countries Global trade creates more waste and pollution The future of Globalization There should be global regulations for salaries and working conditions Governments should impose laws to protect the environment 5. Increased Inward Investment. The process of globalisation has encouraged firms to invest in other countries. For example, many firms are relocating call centres to countries like India, where wage costs are lower. This inward investment benefits developing countries because it creates employment, growth and foreign exchange. Some foreign companies are criticised for exploiting cheap labour. ut often the wages are higher than otherwise. Efects of Globalisation on the UK Economy Globalisation involves the increased integration and interdependence of the global economy. It means there will be a rise in trade, and increase in movement of labour and capital. ! Comparative Advantage "# firms can benefit from specialising in goods where they have a comparative advantage! This will also lead to lower prices for consumers. see$ comparative advantage %! Shifting Sectors Globalisation will lead to a shift in the sectors of the economy! &or example the "# no longer has a comparative advantage in many manufacturing industries, 'eveloping countries now have an advantage due to lower labour costs! This process can lead to temporary structural unemployment! (ut these effects can be offset by specialisation in other areas e!g! in &inancial and insurance services! )! Increased Competition! Globalisation means that domestic monopolies will now face more international competition! This will help reduce costs and prices for firms! *! Migration! Globalisation makes it easier for migrants to enter and work in the "#! This can help the "# fill job vacancies! +owever, it can also place greater stress on "# housing and public services! ,! Global Economic Ccle! The "# is more affected by the global economic cycle! &or example, a deep recession in the E" will affect the "#, because we rely on E" to export many goods! The global credit crunch had a very damaging impact on "# economy! !ssay" #oes $lobalisation benefit both developed and developing countries% $lobalisation involves the increased integration of national economies. It means a reduction in barriers of trade and investment between different economies. The benefits of globalisation are related to the benefits of free trade. &. 'onsumers will have a wider choice of goods, and prices are likely to be lower. $lobalisation has been an important factor in the falling price of manufactured goods. (.$lobalisation gives an opportunity for domestic firms to export a wider market. !xport led growth has been an important factor in increasing economic welfare in )sian countries. *. $lobalisation enables increased specialisation of production. This specialisation enables firms to benefit from economies of scale. This leads to lower average costs and increased efficiency. +. $lobalisation causes increased competition between different firms and countries. This puts pressure on firms to be increasingly efficient and offer better products for consumers. 5. Increased Inward Investment. The process of globalisation has encouraged firms to invest in other countries. For example, many firms are relocating call centres to countries like India, where wage costs are lower. This inward investment benefits developing countries because it creates employment, growth and foreign exchange. Some foreign companies are criticised for exploiting cheap labour. ut often the wages are higher than otherwise. Problems of Globalisation &. #eveloping 'ountries ,ay Struggle to compete. If a developing country wishes to develop a new manufacturing industry, it may face higher costs than advanced industries in the west, who will benefit from years of experience and economies of scale. To develop an industry it may be necessary to have protection from cheap imports- this gives the firm chance to develop and gain economies of scale. (. $lobalisation keeps #eveloping countries producing primary products. #eveloping countries may have a comparative advantage in primary products, however, this offers little scope for economic growth. .rimary products have a low income elasticity of demand. Therefore, with economic growth demand for products increases only slowly. .rimary products often have volatile prices, this can cause the economy to be sub/ect to fluctuations in income *. ,ulti national 'ompanies may be able to force out local retailers, leading to less choice for consumers and less cultural diversity. +. ,ovement of 0abour. globalisation enables workers to move easily around. however, this may cause the highest skilled workers of developing countries to leave for better paid /obs in developed countries.