Essay: Explain the Benefits and Problems Associated with Globalisation, Using Examples Wherever Possible. (10 Marks)
Despite these apparent benefits, globalisation has many negatives. Perhaps most significantly, it can be seen to benefit some parts of the world more than others, arguably opening LICs up for exploitation, and therefore widening the development gap. Due to their predominantly powerful status’, HICs often control trade and dominate global politics. This leads to LICs often being exploited, with harsh trade agreements being imposed to which LIC nations are almost forced to agree upon.
TNCs provide a prime example of the way in which HICs may exploit LICs. As companies locate to foreign areas of the world, seeking cheap land and labour, this can often result in a ‘global auction’, of countries desperately offering incentives, such as that of a ‘ten year tax holiday’ in Export Processing Zones to entice business. The location of TNCs have be a desperate necessity for many LICs: providing employment and hence putting money into the economy. This often leads to countries offering cheap labour and undermining the rights of the workers. Workers often work in appalling