What are the advantages and disadvantages of globalisation? (6)

One advantage of globalisation is that is it has caused increased growth for many countries which has led to a rise in GDP thus a rise in living standards of the population. One disadvantage is that globalisation has caused large firms to shift production to countries with lower labour costs to reduce their average costs. This in turn has worsened living standards in LEDCs due to low wages and increased pollution. Overall it depends on the level of government intervention, if the government intervene as impose strict regulations such as minimum wages then globalisation is beneficial. However if they choose not to intervene then workers are exploited and living standards remain low.

MS

Related Economics GCSE answers

All answers ▸

Explain two disadvantages of specialisation.


What makes the Production Possibility Frontier shift to the right?


Are living standards always lower in developing countries than developed countries?


What is the central economic problem?