Positive Impacts of Globalisation
Inward investment by TNCs can have a significant effect on social and economic developments within a country at both national and regional scale. Environmental impacts may also arise due to globalisation and TNC's exploitation. Some countries can gain a number of positive impacts due to the location of TNC branches.
Globalisation increases awareness of events in far away parts of the world due to great communication and through media. People can experience foods and other products that were not available in their country. Globalisation may also help to make people more aware of global issues such as deforestation and global warming, therefore, suggesting the need for sustainability to people around the world through mass media.
Negative Impacts of Globalisation
Many of the negative impacts apply to developing countries and least developed countries. The impact of FDI to developed countries may also be negative as well. Many groups criticise World Trade Organisation (WTO) and TNCs that have allowed globalisation to happen.
There are no guarantees that the wealth from inward investment will benefit the local community. The capital generated by TNCs does not all stay in the host country. Globalisation is also viewed by many as a threat to the world's cultural diversity. Local economies, traditions and languages might be drowned by the capitalist North and West.
Globalisation and TNCs have both positive negative effects to the developed and developing nations. Click next to find out more about how globalisation and TNCs influenced countries to become NICs in The Asian Tigers section or click back to go back to the globalisation section.