How has globalisation transformed the world?
Globalisation is the process by which the world’s economy is becoming more interconnected. This is happening through our increased exposure to foreign culture and trade. Since the start of the 20th century rapid development has occurred within globalisation with large-scale purchase and sale of goods. In many ways the effects that have been felt from globalisation have been positive. Often globalisation means for LEDCs an influx of chances at jobs and improving their own skill set through the inward investment from TNCs (OECD, 2007). International trade is the exchange of goods and services across the world’s borders and is concerned with its freer movement. One prime example of this is the European Union an internal market that seeks to ensure that all goods, capital, services and people can come and go as they wish. This economic union sees 27 member states included in larger competition and increased specialisation (EC, 2013). There is a different side to how globalisation has transformed the world further than just its economics; culturally everyone stands to gain through the sharing of ideas, meanings and morals of different people across the world. Because of the recent rapid acceleration of technology and who now had access to it cultural friction is being swept away (Global Policy, 2013). There are both winners and losers within globalisation and some countries often find they are being exploited by MEDCs looking for cheap labour and raw materials. Many LEDCs don’t have minimum wages or health and safety enforced by law so larger firms can move production abroad thousands of miles and still produce the same product from considerably less. Often the firms who employ these workers don’t invest in the local community and little of the money made by the firm remains in the country. Many of these Transnational Companies operate of such large economies of scale they force the closure of other pre-existing...
Please join StudyMode to read the full document