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• Increasing opportunities for poor countries through the inflow of foreign capital and technology,
opportunities for economic development, spreading prosperity, promoting democracy and respect for
human rights.

• Mass population movements, travel and the rapid dissemination of information via the Internet

• International companies investing in business in other countries provide employment for people and
often lift them out of poverty.

3.3 The disadvantages of globalisation

Despite the many advantages of globalisation, it has its disadvantages, including: :
1

• Global over-standardization of products.
Example: Most computers in the world use the Microsoft Windows operating system. Critics argue that this
leads to a lack of product diversity and creates barriers to market entry for small, local manufacturers.

• Companies that are established in several countries may have difficulties in coordinating the activities of
subsidiaries.

• Free trade and structural change are causing job losses on national markets

• Risks related to the interdependence of economies

• Globalisation generates winners and losers, and is therefore likely to increase inequalities, as richer
countries benefit more than poorer countries. Awareness of growing inequalities, together with job losses,
is believed to have contributed to an increase in anti-globalisation movements.

• Increased trade linked to globalisation has increased pollution and contributed to CO2 emissions and
global warming. Increased trade has also accelerated the depletion of non-renewable resources such as oil.

1 https://www.economicsonline.co.uk/Global_economics/Globalisation_introduction.html