Winners and Losers from Globalisation

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BENEFITS TO DEVELOPED AND DEVELOPING COUNTRIES OF GLOBALISATION:

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DISADVANTAGES OF GLOBALISATION:

Impacts on natural environment:

Environmental damage E.G. more cars purchased, more flights taken so increased global warming

Some resources non-renewable and can’t be replaced

Exploitation of less developed countries:

Encourages developing countries to reply on producing primary products but does;t help them grow as they have low income elasticity of demand so demand increases only slowly

Multinationals pay low wages, employ child labour, poor working conditions

Taxes paid to host nations minimal

Higher commodity prices:

Commodity - a raw material or primary agricultural product that can be bought and sold, such as copper or coffee

Major increases in price of rice and wheat

Interdependence:

A global banking crisis, for example, can be caused which can lead to world recession

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DEVELOPMENT GAP:

Globalisation leads to economic growth and development

Pace of growth and development not same in all countries

Developed countries benefit more because have resources to exploit forces of globalisation

Gap between rich and poor increased