Question

advantages and disadvantages of economic globalisation? ​

Answer 1

Answer:

Woods (2000) stated that the government of developing countries start to compete with each other by deregulate their policy to attract foreign direct investment (FDI) and multi-national corporations (MNCs). Hence with lower the wages and taxes rates enable the investors to avoid the risk of losing their capital invested in developing country.

Research done by The Economist (2001) and Woods (2000) and found that when the government of developing countries increasing minimum wage and labour safety standards in order to protect local workers’ rights, this might could cause MNCs relocate their operation to another developing countries, where that particular country’s labours, who were probably willing to accept low wages by any standards, lack of union representative and legal protections such as child labour and other gross labour that abuses by global companies.

Technology transfer

Positive Impact

Transfers of technology depend on resource available by MNCs with the ability to achieve the level of technology development in order to make them competitively in global market. Usually developing countries unable to do research and development on their own as the technologies that required implementing the competition strategy are most likely to come from other countries through technology transfer (Stewartet al., 2003). Hipkin and Bennett (2003) stated that the extent of developing countries, participation in global economy depend on their ability to respect where the importance of technological transfer cannot be overemphasized.