Who are the winners and losers of globalization? Globalization is the process of international integration arising from the interchange of world views, products goods and services, ideas, and other aspects of culture. It is featured in nearly every country in the world and this is through mainly the trading of goods from one country to another. Globalisation can bring wealth into a country as it brings in more products or materials to be sold or to produce many more goods locally and industrially.
Globalisation can also bring a variety of culture into a country as different foods and ideas are transported from another country. Globalization has expanded the profits of many companies such as McDonalds, KFC, Uniqlo, H&M and so many more. Without Globalisation these companies would seize to do well in the economic world as they would be limited to one country or place and the stock that they sell would probably be a lot more expensive and harder to make and these companies get stock and parts shipped from all around the world.
However, many people who are concerned about the fate of the world’s poor now attribute their trouble with globalization. They argue that globalization has weakened the position of poor countries and exposed poor people to harmful competition as local shops, and business lose out on custom due t the larger stores being opened up in the area, moreover these local shops would struggle to compete with the cheap prices of goods from the larger shops this is due to the fact that the big stores get their products in bulk and mainly imported.
Their concern is understandable, especially since the gap between rich and poor has indeed become more glaring in recent decades. However, proving a direct link between economic globalization and poverty is a complex task for several reasons. Firstly, specifying how globalization affects the economic status of countries or individuals is not easy. this is why most of the time GDP (gross national product) is calculated in USD to make comparisons a lot easier.
It is hard to determine if globalization is either negative or positive due to the fact that it affects different countries as If globalization is the cause of poverty, then countries that become more economically integrated through trade and investment should do worse than they do. But some that have become more integrated into the world economy and trade, such as America, have made progress and would not be at the top end of the worlds economy. However, countries such as Africa have benefited little from the outsourcing from other countries due to exploitation and corruption in the governments.
This leads on to my conclusion which is that the MEDC’s benefit much more grately from globalisation and this is due to the fact that advantages are that globalisation prevents saturation in particular markets and this is done as many things as outsourcing is most common. An example of this is that there may be too many call centers in the UK so they are moved to india and places like that. More over, LEDC’s have the least to benefit from globalisation as it creates intense competition that makes it hard for local businesses to establish themselves;This then broadens the development gap.