How Far Do The Costs Of Globalisation Outweigh The Benefits (30 Marks)

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To what extent do the costs of globalisation outweigh the benefits (30 marks) Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. There are many costs and benefits of globalisation, in this essay I will discuss the extent to which the cost of globalisation outweighs the benefits. One of the advantages of globalisation is that firms have access to larger markets meaning they may experience higher demand for their products, as well as benefit from economies of scale, which leads to a reduction in average production costs. An example is the multinational company Starbucks, they have shops in all parts of the world, this acts as an advantages as…show more content…
However avoiding these regulations means cheaper goods for consumers, for example they can produce goods in China where it is cheaper to manufacture goods. Furthermore another advantage is that globalisation has enabled increased levels of investment. It is easier for countries to attract short term and long term investment. Investment by multinational companies can play a big role in improving the economies of developing countries. Also domestic monopolies used to be protected by a lack of competition but globalisation enables firms to face greater competition from foreign firms increasing competition. Additionally globalisation can increase the movement of labour. If a country experiences high unemployment, there are increased opportunities to look for work elsewhere this helps reduce geographical inequality. This has been quite effective in the European Union, with many Eastern European workers migrating

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