Advantages & Disadvantages of Globalisation

Arguments for and against globalisation in both the developed world, AND the developing world.

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James Fortson
GLOBALISATION
The advantages and disadvantages of globalisation, in both developed and developing countries.
ADVANTAGES DISADVANTAGES
It increases world economic growth, However, globalisation leads to a
encourages free trade and leads to more integrated world market,
lower unemployment (more jobs in making some currencies more
services ­ not manufacturing). volatile, and could also lead to a loss
Banks and private investors now of culture/tradition in some
hold trillions of assets invested countries.
overseas. However, these capital
flows are mainly in rich countries MNCs are gaining increasing
and can fluctuate year-on-year. amounts of wealth and power,
meaning they have a greater
Increased variety of products in freedom to move capital and labour
MEDCs (e.g. consumers can now buy
around the world. However, some
a lot of fruit & vegetables all year
people argue that this gives them
MEDW round, which was never possible
before). too much power, and that they end
up creating their own taxation,
DEVELOPED Globalisation makes us wealthier, employment and spending policies ­
COUNTRIES and gives us the opportunity to lead rather than the national government.
more diverse lifestyles.
There is increased job insecurity in
Globalisation removes many
developed countries ­ employees
barriers to entry.
are always worried that their jobs
Our financial markets become more may go abroad in order to reduce
integrated. This causes more their firm's costs of production (to
competition, the removal of countries where wages are lower).
inefficient producers and thus
increasing quality. It also leads to Some MNCs are abusing the
faster improvements in technology environment since globalisation
since firms are trying to get ahead leads to increased amounts of travel
of each other.
and transportation ­ e.g. more air
Improved technology services such and noise pollution from aircraft,
as the internet may create new ships and trains.
opportunities for economic
development in tourism. Small firms in developed countries
are worried that the global
economies of scale of MNCs will put
them out of work.
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James Fortson
3 billion people have been lifted out Some people will be working in poor
of poverty over the last 50 years ­ conditions, on low wages and for
particularly in those countries which long hours ­ e.g. in sweatshops.
have integrated in the global
economy (e.g. India and China). There are no/poor health and safety
regulations ­ could be dangerous for
In Taiwan, absolute poverty no workers to use some machinery etc.…read more

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