Examine the Advantages and Disadvantages Associated with Globalisation

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Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has resulted in many businesses setting up or buying operations in other countries, increasing the production of goods and services and creating more wealth in developing countries, however it is not helping to close the gap between the world's poorest countries and the world’s richest. Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries – When TNC’s set up branches in poorer countries, they exploit their cheap labour and raw materials. An absence of strictly enforced international laws means that TNCs operate in LEDCs in a way that would not be allowed in western civilisation: They pollute the environment, run risks with safety and often impose both poor working conditions and low wages on the local workers. However, this is not always the way. Many TNCs, despite taking advantage of the cheap labour, train their workers well and provide them with new skills with will help them to find jobs in the future – this will all in all increase the countries GNP. They also bring wealth and foreign currency to local economies when they buy local resources, products and services. The extra money created by this investment can be spent on education, health and infrastructure, which will help the LEDC to become more developed. On the other hand, transnational companies, with their massive economies of scale, often drive local companies out of business; and if it becomes cheaper to operate in another country, the TNC usually close down the factory and make local people redundant. However, when looking outside of TNCs and exploitation, globalisation has assisted the sharing of different ideas, lifestyles, cultures

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