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Econ Work-Globalisation
Econ Work-Globalisation
Globalisation can also have negative impacts on the countrys as it causes the enviroment and people
to suffer, for example when a large firm decides to move production to a less economically
developed country, people in industiralised countries lose thier jobs whereas people gain jobs in less
economically develop countries increasing the income per capita. However, many people in less
ecnomoically developed countries work for very little pay compared to those that work in
industrialised countries therefore they often remain poor. According to Mckinsey Global Institure
(MGI) the network of global glow is expanding rapidly as emerging ecnomies join in. This causes
rising incomes in developing countries which are causing new centres of consumer demand, global
production and commodity trade. Developing countries are make up tp 38% of global flows which
has trippled since 1990.
Furthermore this graph confirms the fact that globalisation is making it easier for developing
countries to catch up those that are advanced as the share of the worlds GDP has increased
significantly in developing countreids from 37.2% in 2000 to 51% in 2013, whereas the share of the
worlds GDP for advanced economies has decreased from 62.8% to 49%. Therefore suggesting that
developing countries are getting wealthier.
An increase in globalisation leads to an increase in growth, resulting in an increase in productivity
due to specialisation. However certain parts of sub-saharan africa, the middle east and parts of
former soviet union appear to be left behind. This is because they are affected by barriers to trades
such as tariffs, so thier ratio to trade of GDP has not risen over the past few yeas. Multinational
corportations such as coco cola have caused a rise in income per capita in some deloping countries
(by building factories and proving jobs). Income inequality can occur between the country.
The maps ephasises areas of income inequality in china. It shows us that there is a large divide
between the rich and the poor. This can cause a problems as not everyone is benefiting from
globalisation, some regions of china are being left behind.
It highlights areas of income inequality within a country that took off due to globalisation. image
image is concentrated on certain areas and nationally is not beneficial for everyone causing large
dividers between rich and poor. Furthermore due to the advenaces in techonolgy the demand for
unskilled jobs is low. So in order to compete in the worlds market these countries need to invest in
education so they a left behind in the long run.