Is globalization only to benefit the power and finances the speculators, investors

and traders does it offer nothing to men women and children who are ravaged by
the violence of poverty outline two benefits and costs of globalization to
developed countries developing countries.
Globalization
Bangladesh
Sweat shops
Multinationals in developing countries
Australia car industry
Oxfam

Globalization has both benefits and costs

For developed and developing economies
Identify one benefit and one cost for a developed economy i.e. Australia
Identify one benefit and one cost for a developing economy i.e. Bangladesh
Nelson Mandela

Benefits of Globalization in developed countries

1. Globalization encourages Free trade which is a way for countries to

exchange goods and services. This means countries can specialize in
producing goods where they have a comparative advantage this means
when a country specializes or concentrates in areas of production where it
is most efficient (i.e. its cost disadvantages are least) relative to other
areas of production.
2. Increased Economies of Scale- (A proportionate saving in costs gained by
an increased level of production). Production is increasingly specialized.
Globalization enables goods to be produced in different parts of the world.
This greater specialization enables lower prices for consumers.
Additionally Trade among nations via the use of comparative advantage
promotes growth, which is attributed to a strong correlation between the
openness to trade flows and the effect on economic growth and economic
performance.
Benefits of globalization in developing countries
1. Globalization has created new opportunities for companies in developing
countries providing services, particularly in the IT field. Services such as
data entry, accounting, and administrative tasks, are now being done
cheaply in developing countries and exported to the developed countries.
2. Greater competition among producers resulting from globalization is a
great advantage to consumers now enjoys improved quality and lower
prices for several products.
Costs of Globalization in Developed countries
1. Globalization has environmental impacts in developing countries but also
developed countries. For example the 64.3 Billion dollar Gorgon Project
Funded By Chevron Corporation (An American oil and Gas Corporation) is
taking place in Barrow Island which was declared a class A natural
reserve in 1910. Many has protested for years that this project will
interfere with barrow islands environment and endanger terrestrial
species that occur nowhere else
2. Domestic industries in developed countries may be endangered due to
comparative or absolute advantage of other countries in specific
industries. Another possible danger and harmful effect is the overuse and
abuse of natural resources to meet new higher demands in the production
of goods.
Costs of Globalization in Developed countries
1. In order to compete in the world market exporters try and cut labor costs.
Workers are denied. Workers are denied their fair share of benefits as
manufacturers are always on the lookout for cheaper labor.
2. Liberalization of foreign trade policies allowed the import of electronic
goods at a very cheap cost. Local producers of electronic goods were not
able to meet with this challenge. 'Multinational Corporation flooded the
market with quality products at a cheap price. Local producer are not able

to compete with this and are put to hardship, as their goods do not have a
market.