Globalisation - pros and cons developing economies

Question 1

What are the 2 advantages to producers of globalisation

Answer 1

increase competitiveness so lower costs thus increase profits

MNCs FDI can be used e.g. infrastructure so more efficient

Question 2

What are the 2 disadvantages to producers of globalisation

Answer 2

small firms can’t survive due to stripping of skilled workers by MNC and can’t control prices because of MNCs

fewer skilled workers because less education

Question 3

What are the 2 advantages to workers of globalisation

Answer 3

increased mobility because MNC’s go anywhere
more job opportunites

Question 4

What are the 2 disadvantages to workers of globalisatio

Answer 4

MNC exploitation of workers

vulnerable workers as MNC bounce from country to country

Question 5

What are the 2 advantages to consumers of globalisation

Answer 5

More infrastructure from FDI = positive multiplier

variety of goods which increase standards of living

Question 6

What are the 2 disadvantages to consumers of globalisation

Answer 6

demand pull inflation
poor quality of GaS due to brain drain