Notes

SOCIAL STUDIES. positive impact for economic globalisation.

--> Many countries which are globalising have enjoyed the increase of income levels. As many countries trades and open their doors to foreign investments , they earn more revenue. Government make use of the revenue for education , defence , health , housing and transportation. For example , Singapore's pro globalisation policy has resulted in an increase of monthly average income in the last 50 years. With free trade , consumers can purchase variety of foreign goods besides local goods. As a result , countries benefits globalisation as their people enjoy the higher standard of living with more job opportunities created by the foreign investments. In addition , the increase in lifestyle choices due to larger variety of foreign goods available leads to a better living quality for the people.

NEGATIVE IMPACT FOR ECONOMIC GLOBALISATION.

--> INVESTMENTS AND MARKETS.
In globalising world , competition for investments and markets is intense. Transnational Cooperations (TNCs) seek out location for reason such as lowering the cost of production. Government in turn compete with one another to attract the investors to invest in their country. When China open the doors in the late 70s for foreign investors , many companies chose to set up their production facilities as the cost of production were lower. Cities in China such as Dalian and Suzhou rapidly developed and they now well-developed industrial infrastructure such as trails and road networks. Today , China has become an attractive country for foreign investors and posses challenges to other countries in the region. For example , China's rapid economic growth has resulted in Shanghai knocking Singapore off its perch as tehe world's busiest container port. This could negatively affect Singapore's economy. Hence , countries that are able to offer incentives are more successful to attract foreign investors than others.



-->TALENT.
With globalisation , people are able to move from one country to country in search of leisure activities and employment. People with high skilled talents are high in demand. Globalisation has presented people with talent with opportunity to find employment in other country. However this may increase in worker's mobility that may lead to brain drain which leads to high skilled people migrate to other country to have a better opportunity. For example in 1980s , talents Indians migrate to US to have better opportunities. This may pose to its home country a challenge as there is insufficient talented people to work and lead in the key economic sectors of the country which may lead to decline in country's economy.

-->WIDENING INCOME GAP BETWEEN THE RICH AND THE POOR COUNTRIES.
Economically well-developed countries are experiencing rapid income growth as they are responsible for their manufacturing activities. For example , many TNCs are from economically well-developed countries from North America and Western Europe. These TNCs are able to draw investments , high skilled people and resources from poor locations and relocate it to their benefits. International trade has generated large revenue for them. On the other hand , developing countries often face trade restrictions put up by developed countries. They are not capable of producing better quality goods that fetches high prices that developed countries do. This is due to lowly-skilled workers. TNCs often locate labour-intensive and low value-added productions in poorer countries such as Bangladesh. They employ from developing countries to take up lowly-paid jobs , often with poor working conditions.