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One important benefit of globalisation is that it create a market that promote efficiency through competition and division of labour and functions such as the specialization that allows people and economies to focus on what they do best

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Introduction

GLOBALIZATION AND THE WORLD ECONOMY Globalisation in general means the effort of a company moving into other territories (outside the national boarders of a country) to sell its goods and services to increase profits as a result of expansion. Globalisation incorporates both opportunities and risks which change the way businesses are managed worldwide. It brings about a well-diversified portfolio for such a company. This is because the company is guarding itself from huge losses in case of economic uncertainty. Significant gain in one company can cover for the losses made in another company. By this, the globalise company would experience constant cost pressure which entice them to continuously produce and improve on its activities. Major companies like Nestle, Shell, Nokia, Ford and Toyota among others have gone global because of the benefits mentioned above. Currently, more and more entities are merging to become supra-multinationals. Companies become more interested in going global once their value goes a little higher than those of the developing countries. Most of these countries globalises via legitimate causes whilst others are just followers. This gives the reason why some companies become leaders in the global economy with others becoming bankrupt. ...read more.

Middle

This makes the global market an attractive place for companies to invest. Having found out some of the advantages of globalization there some disadvantages that hinder the smooth process of globalization in developing countries. High performing economy due to globalization brings about increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out for the cheapest labour among others (Clark & Wallace, 2002). As a result of this not all the developing countries will be able to benefit fully from globalization. COCA COLA opened the subsidiary company in China and employed the nationals not only because of providing employment, but also to exploit the labour force. This is partly because the workers are unskilled. All these developing countries provide the cheapest labour to each multinationals, but only can get back exploitation, although the production cost in developing countries is quit low, the product selling price is same in both developing and development countries. It means the people live in developing countries have to pay more for the same product than the people from development countries depend on the difference living standard and income level. ...read more.

Conclusion

They bring expired products to a county under the pretext of supporting globalisation but in actual sense dumping their unwanted goods. The victim country is always at the loosing side. This is because the country cannot reject the product once it has been imported into the country. This would bring diseases, problems and other unexpected problems. In conclusion, having highlighted on the issues of globalisation, it can be concluded the even though there are some problems associated to its implementation like the exploitation of labour force among others, its advantages far outweighs the disadvantages. This is because it provides employments to the citizens of that particular country. The company directors who globalises also hedges themselves against future uncertainties. This promotes FDI's and also makes the entire world an integrated place to live in. Hence the benefits of globalisation cannot be overemphasised enough. In fact what needs to be noted is that, the idea of globalisation is a perfect idea but it the way the developed nations use it to exploit the underdeveloped ones that is not justified. Therefore, if the government can find effective ways to control the aggressive companies who seek to overuse the characteristics of globalisation, it will be an effective tool to improve economic development. ...read more.

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