Globalisation Crib Sheet

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NB: when discussing globalisation some sources discuss remote events such as setting up of East India Company. As term ‘developing countries’ is used students should focus on modern post-colonial era – probably shouldn’t go further back than 1960s

|Advantages |Disadvantages | |Multinational companies (MNCs) have more opportunities for Foreign |MNCs tend to use cheap labour – many jobs badly paid, with poor | |Direct Investment (FDI) can create more work opportunities for local|conditions, using child labour etc. | |people. | | |Competition between domestic and foreign producers gives local |Can be difficult for local companies to compete against MNCs, | |consumers more choice, may reduce inflation |especially infant industries, could lead to increased unemployment | |Some developing countries seem to experience dramatic economic |Many countries seem to benefit less from globalisation. Some | |growth as a result of globalisation (e.g. BRICs Brazil, Russia, |countries producing raw materials, agricultural produce may have to | |India, China) |operate in rigged markets (especially by EU, NAFTA etc.). Even | | |inside BRICs can be wide differences in income distribution | |Globalisation leads to increased tourism which can boost GDPs of |Tourism tends to create seasonal, badly paid jobs. Also is unstable,| |developing countries |vulnerable to economic downturns in developed countries, terrorist | |...
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