what are the positive factors of globalisation
Answers
Inward investment by TNCs can have a significant effect on social and economic developments within a country at both national and regional scale. Environmental impacts may also arise due to globalisation and TNC's exploitation. Some countries can gain a number of positive impacts due to the location of TNC branches.
Employment - Inward investments by TNCs helps countries by providing jobs and skills for local people. When TNCs buy local resources, products and services it brings foreign currencies to the local economy, therefore, bringing wealth to the local communities. This is known as foreign direct investment (FDI) where business enterprise in one country is owned by an entity based in another country. The money gained by local communities can be used on education, health and infrastructure therefore improving the quality of their lives. (Figure on the right shows FDI inflows frim 2007 - 2012)
Multiplier effects - At a local scale, such investment can trigger more employment through the process of cumulative causation, bringing wealth into the local economy. The location of a TNC in a region has the potential to create jobs in; companies that supply components to the plant, companies that distributes goods from the new plant, companies that supply services to the new plant from servicing plant machinery to supplying canteen.
New Methods of Working - TNCs may introduce methods of working that are new to the country. These have included quality management systems which monitor the standard of output in supplier firms and just-in-time component supply. They create more skilled workforce by transfering technology to the host country. In developing countries, more opportunities are created for female employment in low-skilled manufacturing jobs.
Globalisation increases awareness of events in far away parts of the world due to great communication and through media. People can experience foods and other products that were not available in their country. Globalisation may also help to make people more aware of global issues such as deforestation and global warming, therefore, suggesting the need for sustainability to people around the world through mass media.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.