Impact Of Globalization On The Global Economy

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Globalisation is the process of the globe interconnecting through integration of communication, trade, investments and production in the global market. The development of Technology through the industrial revolution, is one the most significant factors behind globalisation. Globalisations removes the limits to business, the trade of goods and services worldwide. This allows business cooperation’s to expand in foreign markets. Global trade is a powerful force that has been made possible through the process of globalisation, and has opened up the gates to the global economy. There are many advantages and disadvantages to the ‘good’ force of globalisation. It has developed the economy to a global scale and given nations the opportunity to…show more content…
This is incredibly bad for the environment and some natural resources are diminishing to the point of extinction. To add to this International laws are not enforced so cooperation’s can get away with polluting the environment in less developed countries, which they would not be able to do in more developed countries. As a result cooperation’s get away with allowing bad working conditions, health risks and low wages for workers in LEDC’s, therefore polices such as the human rights act that are meant to protect the workers are ignored. This is because countries such as China, India and Brazil have a lack of employment law meaning labour costs are much lower. To add to this there is also a lower standard of living in LEDC’s compared to MEDC’s; in India people live on less than 1p a day. Plus the atrocious use of child labour for example in coca plantations in Ghana. Labour Industries in manufacturing and clothing, therefore benefit from the cheap labour costs in less developed countries because of their weak rules. But this is what drives the free market global economy; the exploitation and lack of laws in developing countries. The force of globalisation has created an amoral and powerful global economy that exploits the world’s natural resources ‘The industrial destruction of nature’ (Baylis, Smith, Owens 2014: 345). This later established non-governmental organisations
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