Globalisation

Created by: Baryshnikov
Created on: 16-04-18 19:10


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	Advantages Increases the divisions of labour Increases economies of scale Competitive markets reduce the power/profit of monopolies Competitive markets force businesses to make cost-reducing innovations Encourages higher per capita incomes Reduction of extreme poverty Freer movement of labour between countries Dynamic efficiency as a result of sharing ideas/technologies/skills Opening of capital markets helps developing countries access finance- such as funds to overcome domestic savings gaps Increases awareness of income inequality/climate change Improve governance as a result of competitive pressures Increased labour protection as a result of competitive pressures	Disadvantages Increases inequality Increases relative poverty Environmental damage eg. deforestation, decline in bio-diversity, water shortages & land degradation Macroeconomic fragility/increased risk Trade imbalances Protectionist tensions as a result of trade imbalances Increased structural unemployment as production shifts to lower cost centres Domination of global brands at the expense of local ones Exploitative behaviour of some MNCs with regards to worker's wages, environmental protection & tax avoidance
	Evaluation Overall it depends on the country involved-some may seek structural change that accompanies globalisation while others may seek to avoid it or reduce it through de-globalisation. It is usually more advantageous for MEDCs rather than LEDCs as the former is better equipped to exploit the benefits through footloose capitalism (holy trinity) etc. at the expense of the LEDCs.

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Advantages

Increases the divisions of labour
Increases economies of scale
Competitive markets reduce the power/profit of monopolies
Competitive markets force businesses to make cost-reducing innovations
Encourages higher per capita incomes
Reduction of extreme poverty
Freer movement of labour between countries
Dynamic efficiency as a result of sharing ideas/technologies/skills
Opening of capital markets helps developing countries access finance- such as funds to overcome domestic savings gaps
Increases awareness of income inequality/climate change
Improve governance as a result of competitive pressures
Increased labour protection as a result of competitive pressures

Disadvantages

Increases inequality
Increases relative poverty
Environmental damage eg. deforestation, decline in bio-diversity, water shortages & land degradation
Macroeconomic fragility/increased risk
Trade imbalances
Protectionist tensions as a result of trade imbalances
Increased structural unemployment as production shifts to lower cost centres
Domination of global brands at the expense of local ones
Exploitative behaviour of some MNCs with regards to worker's wages, environmental protection & tax avoidance

Evaluation

Overall it depends on the country involved-some may seek structural change that accompanies globalisation while others may seek to avoid it or reduce it through de-globalisation. It is usually more advantageous for MEDCs rather than LEDCs as the former is better equipped to exploit the benefits through footloose capitalism (holy trinity) etc. at the expense of the LEDCs.

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Globalisation

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Advantages

Disadvantages

Evaluation

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