costs and benefits of globalisation (1 Viewer)

[nikkiglitzy_25]

If there's an essay qu on 'Examine the costs and benefits of globalisation', how would i answer that?
Because couldn't a benefit for a developed country look like a cost for a developing country?
Also, in terms of unemployment, couldn't that act as both a cost and a benefit of globalisation, i.e. Couldn't it be argued that unemployment has increased as a result of globalisation due to global outsourcing and structural unemployment increasing due to free trade? But then on the other hand, hasn't unemployment also decreased as a result of globalisation since TNCs have been established around the world and these TNCs will employ more people, and additionally because domestic businesses gain easier access to nearby export markets (through free trade) and will need to hire lots of people (eg. mining industries in Aus due to the mining boom)?

Or is it just straight forward costs like environmental degradation, increasing income inequality, the whole argument of richer countries becoming richer and poorer countries becoming poorer
and benefits such as increase GWP, improvements in QOL etc?

 

[eyeseeyou]

Do some research on the internet. Also, look at the marking criteria and know your extended response structure very well

 

[elkedag]

Just a few pointers:
- You need to be quite careful when you talk about structural unemployment, because it is only in the short-term that structural unemployment will increase (as the economy restructures). Afterwards, as productive capacity increases due to greater productive and allocative inefficiencies in the economy, long term aggregate supply should increase, allowing structural unemployment to fall as the economy benefits from gains from trade.
- TNCs can represent a benefit to an individual economy because they can represent employment, as well as catalyse the creation of infrastructure in the economy (e.g. roads, rail, electricity), which can greatly enhance the economic development in that economy. The global economy can benefit as a TNC is likely to benefit from vertical specialisation and economies of scale. However, you can discuss how TNCs may be a detriment to the economic development of nations due to working conditions, hyperglobalism, etc.

Other key economic issues that you can discuss:
- A benefit being that synchronised upswings are intensified. Likewise, a cost is that due to animal spirits / high trade dependence / financial contagion, downswings are also intensified. (Re: Latin American / Asian financial crises, GFC)
- Globalisation opens up a threat of dumping. Nation states wishing to use a grim-trigger / tit-for-tat approach to avoid dumping may be detrimentally adversarial
- Increased global transport of merchandise goods and people can accelerate environmental degradation, which is an important economic resource. Yet Kuznet's Curve suggests that as an industrialising economy becomes more advanced, pollution externalities decline (could this happen to economies like China?)

- You also need to explain your assertion that poor countries are necessarily becoming poorer due to globalisation. Could it possibly be due to a lack of exposure to the global economy due to institutional instability?

tldr, there are many things that you can talk about, and it is essential that you structure your response logically and clearly.