Post by geriatrix on Mar 11, 2016 11:53:28 GMT
Pro:
The most obvious benefit of glbalisation is free trade, which reduces the barriers that once stood between nations trading freely with one another. When companies in different nations don't face any barriers to trade in the form of import or export restrictions, they can engage in free trade. Another key benefit of globalisation is the free movement of labour. In a globalised world, workers can more easily move from one country to another; to market their skills to employers and contribute to the economy. The benefits of free movement of labour also work in the other direction. If a country has too few jobs and too many workers, people can easily move to markets in which the job market is better. An excellent example of free movement between countries can be seen in the European Union, particularly the Schengen Area.
Con:
One of the biggest downsides of globalisation is the harm it can cause to economies at an early stage of development. Free trade forces all countries to compete using an even playing field, which critics claim puts smaller, less developed countries behind their more developed counterparts. Another downside of globalisation is the phenomenon known as "labour drain". Since globalisation allows workers to easily move from one country to another, countries with limited job opportunities often find it difficult to encourage skilled workers to stay in their countries. Globalisation can also have a significant negative impact on taxation. Since many companies are able to trade with one country while being based in another, large corporations often exploit tax havens such as Luxembourg, Switzerland and Hong Kong to avoid paying taxes in the countries where they generate their profits.
The most obvious benefit of glbalisation is free trade, which reduces the barriers that once stood between nations trading freely with one another. When companies in different nations don't face any barriers to trade in the form of import or export restrictions, they can engage in free trade. Another key benefit of globalisation is the free movement of labour. In a globalised world, workers can more easily move from one country to another; to market their skills to employers and contribute to the economy. The benefits of free movement of labour also work in the other direction. If a country has too few jobs and too many workers, people can easily move to markets in which the job market is better. An excellent example of free movement between countries can be seen in the European Union, particularly the Schengen Area.
Con:
One of the biggest downsides of globalisation is the harm it can cause to economies at an early stage of development. Free trade forces all countries to compete using an even playing field, which critics claim puts smaller, less developed countries behind their more developed counterparts. Another downside of globalisation is the phenomenon known as "labour drain". Since globalisation allows workers to easily move from one country to another, countries with limited job opportunities often find it difficult to encourage skilled workers to stay in their countries. Globalisation can also have a significant negative impact on taxation. Since many companies are able to trade with one country while being based in another, large corporations often exploit tax havens such as Luxembourg, Switzerland and Hong Kong to avoid paying taxes in the countries where they generate their profits.
