Globalisation

Evaluation

Globalisation means the world is more interdependent. Interdependency can cause economic growth from trade blocs but trade blocs can also cause problems with differential access to markets. The trade in Bananas demonstrates how some countries/TNCs dominate global markets and the WTO seeks to protect neo-liberalistic ideals against SDT that would actually make global trade more fair.  Migration as a result of globalisation can cause brain drain and overcrowding/exploitation but it can also mean that countries gain skilled workforces and people gain a better QOL, remittances can also be both positive and negative here (they help the origin country develop but they are unstable and can fall into the hands of terrorists). TNCs arise from globalisation and they gain bigger economies of scale through global supply chains, increasing profits, reducing costs of consumer goods and bringing more tax to the origin country. The host country also can develop economically and jobs are created- stimulating development and the multiplier effect. They also gain new skills and technologies and are able to attract other TNCs. However, (Apple case study), TNCs can also be exploitative and create sweatshops. This global shift causes deindustrialisation and structural unemployment in the origin countries. TNCs are attempting to stop this damage though (Apple surveying factories and improving environmental status).Transport and communication revolution means goods can be transported around a globalised world. This increases access to consumer goods for many around the world but it also increases the amount of pollution. The global marketing approach of brands can lead to cultural erosion, though glolocalisation is being used to combat this. Ideas have been able to spread through a globalised world, reducing the number of switched off countries. People develop global norms and become more progressive. However this can also lead to cultural erosion and most ideas that spread are rooted in the West and favour MEDCs. Most global organisations that have developed/benefited as part of globalisation (WB, WTO, IMF) favour neo-liberalism which can be damaging to unprepared markets of LEDCs.Countries can also work together to tackle global problems like climate change and pandemics. However, it is likely there will always be a power-imbalance, for example China in the South China Sea.