Limitations of Globalisation

Limitations of Globalisation

1. TO THE FIRM

   • Increased competition.
   • Could increase costs.
   • Demand may become price elastic due to many substitutes.
   • May put smaller firms out of business.

2. TO THE COUNTRY

   • Richer northern hemisphere may dominate.
   • May increase the gap between the rich and poor.
   • Loss of culture.
   • Lack of opportunities for the poor.
   • MNCs may exploit natural resources, workers and avoid tax.