• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss the extent to which globalisation has been beneficial to Africa, China, America or Britain.

Extracts from this document...


Discuss the extent to which globalisation has been beneficial to Africa, China, America or Britain. Globalisation is when the world's separate economies become integrated into one as trade grows, capital is able to move from MDCs to LDCs and labour can migrate the opposite way. This comes from the removal of barriers to integration bringing us closer to a single world market. Many African and other 3rd world countries will benefit from job creation through increased trade (exports) and allocative efficiency meeting the demands of increasing consumers and markets, as they aim to concentrate investment in industries which they have comparative advantage. Comparative advantage where a country producing a good or service because it is better at producing that good/service and also producing it at a lower cost than another country. On the other hand globalisation is seen to have some drawbacks in some cases, because of western power, this is things such as Laws, regulations preventing free trade, high taxes poor countries cant afford. Weak 3rd world governments may also be forced to pay high tariffs on imports and be given limitative quotas on exports. ...read more.


African countries also have so much debt that they are unable to build a market friendly environment to gain structural change into secondary industries. MDCs should help these countried by providing them with aid and cancelling their debts, we should also have true free trade by reducing our barriers to poor countries, the globalisation will benefit poor countries as they will get export led growth. MDCs could also help LDCs to industrialise by allowing for foreign direct investment (FDI), this is beneficial as if western companies build factories in these countries it will provide jobs from abroad, it should also act as an injection into the economies circular flow from abroad. It should also cause a local multiplier effect which is the enlarged impact on national income of a small change in an injection or spending. However this also brings things such as exploitation of workers, the employer may pay their workers very little money, and make them work in very dangerous conditions. Foreign industries may cause small LDCs to become overly dependant on them, the foreign company may also begin to bribe local politicians in order to change local policies. ...read more.


These might follow the path of China just like other countries such as Brazil and Turkey have. It takes more than Globalisation to do this, as it requires MDCs like Britain and America to provide good aid and guidance to the LDCs. These African economy could also try for EOI, however this can only be achieved if the government approaches it in a good way. The economy could also try ISI (import switching industrialisation), this aims at producing imported goods in the domestic economy. However this produces many infant industries and will not be good for a small country as it will be too difficult to maintain these infant industries and enable them to compete against foreign industries. Overall globalisation can be beneficial if all the gains of free trade are allowed for. However it can be damaging if MDCs try to exploit LDCs and take their natural resources, leaving them with very little once they have developed. It also depends whether the government are organised and their aim is for good economic growth and setting the preconditions for this. Thus there are many requirements for globalisation to be beneficial to everyone. Africa will need to allow for some exploitation in the short run if it wants to gain exports and foreign currency in the long run. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a teacher thought of this essay

5 star(s)

This essay covers many of the main points and really gets into its stride towards the end when it examines why Asia has benefitted from globalisation but not Africa.

Marked by teacher David Salter 05/04/2012

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    How successful has the WTO been in achieving it’s objectives?

    5 star(s)

    a whole, but may also stop structual reform in a country from happening. Though some countries may resist freer trade because of the stated reasons, the overall trend should be towards free trade, the WTO should be able to use that movement.

  2. Marked by a teacher

    "Discuss the Effectiveness of Supply Side Policies in Improving UK Economic Performance"

    4 star(s)

    Enhanced skills should help to increase productivity. This is because people will be better educated and trained in what they want to do, therefore being successful in what they want to do.

  1. How reliable are National income statistics as a means of comparing living standards between ...

    of the respective countries so that the actual purchasing power could be found. This is called the purchasing parity. It is also that the countries whose comparisons are made have different populations, population density, needs and country size and location because of which living costs differ.

  2. Is globalisation merely imperialism by another name?

    and one can say that globalisation has also enslaved millions by enforcing long hours for little pay in developing countries which do not have any workers' rights. Imperialist nations saw an undeveloped country as, "not only a source of raw materials and slaves but a market for manufactured goods."

  1. The Impact of Globalisation upon the Japanese Economy

    It provides detailed surveys, services, and policies to help businesses trade and thereby promotes it. Trade liberalisation has not had as much impact on the Japanese economy as it has had on many other countries. There has only been one significant free trade agreement (FTA)

  2. Using the London and Singapore congestion charges as examples, discuss the effectiveness of a ...

    and so it was replaced by an electronic system using microchips fitted in cars and a detector at the city entry points.

  1. The positive and negative effects of Globalization

    Multi national companies (MNC's) such as 'Ford' are attracted to less economically developed countries due to a cheaper labour force and cheaper raw materials. The globalization of manufacturing has given rise to many large MNC's. Initially this can be seen as a mainly positive effect as large corporations bring in the promise of market

  2. Write a written report on Globalisation

    For instance, the major sources of remittances were the US, $42 billion and Saudi Arabia $16 billion.[5] Another reason for Globalization is that, Economic growth is global in nature. This means countries are increasingly interconnected (e.g. recession in one country affects global trade and invariable causes an economic downturn in

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work