Globalisation - developing country - chapter 16
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- 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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