GLOBALIZATION

GLOBALIZATION

1. positive effect

   • Providing an incentive for countries to specialise
     • application of the principle of comparative advantage.
   • higher demand
   • sources of cheap raw materials
   • less strict regulatory regimes
   • flows of inward investment between countries
   • creation of greater trade

2. negatives effect

   • The over-standardisation
   • difficulties associated with coordinating
   • The increased power and influence of multinationals
   • the potential loss of jobs in domestic markets caused by increased