Drawbacks of Globalisation

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The drawbacks of Globalisation There are several problems with globalisation. This can be illustrated by the creation of multi-national companies; developed countries can stifle development of undeveloped and under-developed countries. For instance, the European Union offer subsidies to farmers across Europe, which allows European farmers to have increased yields. So for a country like Kenya, they cannot export or sell agricultural goods as well as they could have. This economical factor puts Kenya at a disadvantage as there is a surplus of crops, thus making the agricultural goods cheaper or even worthless. Europe dump surplus of crops like tomatoes in countries like Ghana for free, this decreases the chances of development in GDP as Ghanaian farmers themselves will not be able to sell their tomatoes, so competition and the chance to create a better economic well-being is slandered. Trade blocs are created to protect a continent or group of countries, for example, around 10749 tariffs were implemented to protect EU farmers – Europe has kept low tariffs on Kenya’s flower exports, which has resulted in them becoming the largest exporter of cut flowers to Europe, although this shows the political power the European Union has over Kenya’s exports, this shows how restricted Kenya is in terms of globalisation as they have limited trade access so it hinders development. Kenya maybe be benefitting economically from flower exports but socially they are getting worse, as cash crops such as flowers are seen as being more valuable because it brings higher income, the land that is used for cash crops cannot be used for agriculture, this is an opportunity cost, which could possibly increase malnutrition amongst the population – this could result in famine. Globalisation can cause unemployment in former industrialised and industrialised countries because firms move their

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