all the countries developed due to globalisation and due to globalisation are most of the countries suffering through justify. 5marks
Answers
Benefits from Globalisation :
1. Encourages producers and consumers to benefit from deeper division of labour and economies of scale.
2. Competitive markets reduce monopoly profits and incentivise businesses to seek cost-reducing innovations .
3. Advantages from the freer movement of labour between countries.
Drawbacks of Globalisation :
1. Inflation: Strong demand for food and energy has caused a steep rise in commodity prices. Food price inflation (known as agflation) has placed millions of the world’s poorest people at great risk.
2. Unemployment: Concern has been expressed by some that capital investment and jobs in advanced economies will drain away to developing countries as firms switch their production to countries with lower unit labour costs. This can lead to higher levels of structural unemployment.
3. Standardisation: Some critics of globalisation point to a loss of economic and cultural diversity as giant firms and global multinational brands dominate domestic markets in many countries.