Globalisation

Positive impacts

Investment by MNCs helps countries by providing new jobs and skills for local people, but it may also have a negative impact. This could be due to increased competition for local businesses and the fact that many profits from foreign-owned firms are taken out of the host country.

MNCs bring wealth and foreign currency to local economies when they buy local resources, products and services. The extra money generated by this investment can be spent on improving education, health and infrastructure in developing countries.

Many service sector businesses such as banks, have set up call centres in countries where there are high numbers of English-speaking workers, eg India. This means that they can benefit from cheap labour and 24 hour service provision. Different time zones mean that phone lines and customer service can operate for longer.

The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their home country.

Globalisation increases awareness of events in far-away parts of the world. For example, the UK was quickly made aware of the 2010 earthquake in Haiti and rapidly sent help in response.

Globalisation may help to make people more aware of global issues such as deforestation and global warming and alert them to the need for sustainable development.