Globalisation - developing country - chapter 16

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  • Created by: sammilaw
  • Created on: 27-02-16 15:19
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  • Globalisation - Developing countries
    • Chapter 16
    • Advantages:
      • Tariffs protect developing countries' comparative advantage from being exploited
      • Increased level of trade
        • More integrated into the world economy
      • More employment
      • Chance of becoming more like a developed country i.e. India
    • Disadvantages:
      • Exploitation by MNCs i.e. poverty wage
      • Competition for foreign investment = "race to the bottom"
        • Worsened environmental standards
      • Loss of cultural uniqueness
      • Worsened income inequalities due to limited/no redistributive tax system
      • Demand for products comes from developed countries
        • Recession = fall in demand
      • Volume and volatility of capital flows
        • Increased risk of banking or currency crises. Esp. those with weak financial institutions


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