In this chapter, you will learn about:

3. Economic Impact of Globalization

1
Positive

Negative

2
 Improvement in
Standard of Living

Mobility of Talented / Intense competition

Skilled Labour Positive among Nations

3
 Widening Income Gap between
Developed & Developing Countries

Brain Drain Negative Developing Countries

trapped in poverty

Widening Income Gap in

Developed Countries

4
 Positive

1. Improvement in Standard of Living

• Many countries have enjoyed increase in
income levels.
• As they earned more due to increased
foreign investment, the governments
make use of the revenue to improve
education, health, defence, housing and
transportation.
• As such, their citizens benefit from a
higher standard of living.
5
 Positive

1. Improvement in Standard of Living

• Furthermore, with free trade, citizens can
now buy a large variety of foreign goods
besides local ones.
• The increase in choice leads to a better
quality of life – improvement in standard
of living.

6
 Positive

1. Increased competition among nations

• Globalisation leads to increase competitions
between nations as they compete to attract
Transnational Corporations (TNCs) to invest in
their countries.
• Countries that are able to offer financial
incentives, excellent transportation and
production infrastructure to foreign investors
will be more successful in attracting them.
• As such, very often, such competition for
investments and markets leads to further
growth 7
 Positive

1. Increased competition among nations

• Globalisation leads to increase competitions
between nations as they compete to attract
Transnational Corporations (TNCs) to invest in
their countries.
• Countries that are able to offer financial
incentives, excellent transportation and
production infrastructure to foreign investors
will be more successful in attracting them.
• As such, very often, such competition for
investments and markets leads to further
growth 8
 Positive
1. Mobility of Talented /Skilled Labour –
Opportunities for Talented workers
• With globalisation, people are able to move
from one country to another in search of
employment.
• People who are highly skilled are in high
demand.
• As such, Globalisation has presented the
workforce with the opportunities to find
employment with better benefits (e.g. higher
pay) in another country.
9
 Negative
1. Brain drain
• With globalisation, people are able to move
from one country to another in search of
employment with better benefits (e.g. higher
pay)
• As such, countries may suffer from brain drain
or shortage of talent as many may leave their
country of origin on search of better jobs.
• However, this meant a shortage of talented
manpower for their countries which will affect
their competitiveness and hence, economic
growth. 10
 Negative
1. Developing Countries trapped in poverty
• In a globalised world, countries that are able to
offer financial incentives, excellent
transportation and production infrastructure to
foreign investors will be more successful in
attracting them.
• Many developing countries find it hard to attract
foreign investments due to reasons such as poor
infrastructure and political instability.
• Hence, very often, they will remain poor as their
economies would not benefit from foreign
investments. 11
 Negative

2. Widening Income Gap between Developed &

Developing Countries
• Refer to Paragraph 1 and 2 on pg. 55 and
Paragraph 1 on pg. 56

12
 Negative

2. Widening Income Gap in Developed

Countries
• Refer to Paragraph 2 on pg. 56

13
 Positive Negative

• Improvement in • Brain Drain

Standard of Living
• Widening Income
• Increased Gap between
Competition Among Developed &
Nations Developing Countries
• Mobility of Talented • Widening Income
/ Skilled Labour Gap in Developed
Countries
• Developing Countries
trapped in poverty
14
Instructions: Answer the Structured
Essay Question ONLINE by
1.30pm and click on “Submit”

Duration : 25 minutes

Total Marks: 13

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