Benefits & Costs to People
- Globalisation has generated benefits and .costs for many people but at different levels
- Some have benefitted more than others with the poorest tending to be the losers
- However, it can be argued that without globalisation the poorest would be worse off than they are now, as they job opportunities and income from inward investment from TNCs
- Countries such as China, Brazil and India have transformed themselves from developing to emerging economies which has directly benefitted their population
- Gender gap within individual countries is generally lower in more globalised countries
- Skilled workers are in demand and benefit from globalisation more than unskilled workers
Benefits and Cost of Globalisation to People at a Variety of Levels
| Benefit | Cost | |
| Local Level |
Cheaper products available for people Greater choice of goods Bigger export market for domestic manufacturers Integration of cultures - multi-culture Education and skills are improved More freedom of movement Spread of technology and innovation A higher standard of living Availability of housing, sanitation, food and water is better Gender equality and gender pay gap closing in developed countries |
Small local businesses cannot compete with global companies Labour drain - skilled workers migrate elsewhere leaving unskilled or no workers behind Dependence on single TNC employment Worker exploitation/cheap labour Closure of TNC leaves high unemployment rates Cultural dilution or loss of cultural identity Environmental cost of increased production, trade and growth Pollution impacts the health of people Daily living costs increased |
| National Level |
Higher levels of incoming revenue from tourism, exports and imports Growth of improved health care, infrastructure, social care and education Social mobility is greater - access to higher education and senior leadership roles TNC offer apprenticeships and incentives for progression |
Increased levels of disparity between places - some towns and cities will benefit more from government policies Social mobility is limited to urban areas, people in rural areas need to migrate TNCs control a large labour force and can 'black list' workers, effectively preventing people from working elsewhere Industrial growth impacts the environment - burning fossil fuels adds to global warming and pollution Growth of urban slums |
| International Level |
Skilled workers are in demand and can move relatively easily between countries Higher levels of income and quality of life Access to wide levels of skills and research International trade routes and foreign investment improve opportunities |
Movement of people, transport ownership and loss of biodiversity increases globally The impact is greater on developing countries, particularly remote rural areas, increasing the development gap Decisions made elsewhere do not consider local or national identities The movement of skilled workers and researchers leaves an imbalance in developing and emerging countries, reducing the potential for further development unless they pay higher wages, leading to higher global costs |
