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effects of globalisation - Coggle Diagram
effects of globalisation
Positive effects
economic growth
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due to international capital mobility --> more FDI --> increase I, raises future productive capacity --> higher actual & potential econ growth
eg. Singapore, South Korea
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negative effects
volatility & instability
greater inter-connectedness --> large econs suffer recessions --> effects felt worldwide --> trade decreases, domestic jobs & biz lost
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increase unemp
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retrenched workers no skills to be re-deployed in new industries/ too old to be re-trained --> structural unemp
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environment costs
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MNCs exploitative, lacking in responsibility --> exploit countries w not regard for damage
brain drain
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econ stability, good jobs prospect --> pulls people in
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