Impacts of globalisation

Impacts of globalisation

1. Globalisation is the free movement of goods, services, people and finances around the world

2. Advantages

   • Some businesses employ home-workers and tele-workers who are now able to work from home because of improvements in technology eg. Internet. this means that overheads are reduced because they do not have to pay high rents, heating, lighting etc.
   • Shoratge of skilled labour in critical ares eg. nursing has now been provided due to migration from other areas
   • Many businesses remain competitive by employing temporary staff because they are entitled to fewer benefits and can be let go when not needed. This is less costly for firms
   • Foreign multinationals have set up here. This creates jobs.
   • Some Northern Ireland companies have grown and survived by supplying products abroad eg. Wright group, Ballymena. This means continued employment of local people
   • NI has seen a growth in services provided by foreign companies who have invested here, eg. Starbucks, Nandos

3. Disadvantages

   • Brain drain - many of our highly skilled and educated workforce leave Northern Ireland to seek better employment oppurtuinities and lifestyles abroad
     • This can result in skill shortages in industries that are very important to our economy and where it is difficult to find workers. It is expenisive and inefficient to educate and train people to leave.
   • Some service have been outsourced to cheaper countries where labour is cheaper eg. BT have located their call centres to India. The jobs are no longer done by local workers
   • There has been a decline in manufactoring. (eg. Desmonds clothing factory) as local buisnesses have relocated to lower cost economies, eg. China