. Impact and Challenges of Globalization Positive Impact A better economy introduces rapid development of the capital market. Standard of living has increased. World Trade Organization(WTO): Head Quarter: Geneva, Switzerland Purpose: Regulation, International trade Members of WTO: Director General, Four Deputy Director General, and other Official Staff from around member countries.
AM Globalization and Trade Rapidly increases in exploitation of natural resources to earn foreign exchange. Environmental standards and regulations have been relaxed. Challenges of Globalization The benefits of globalization extend to all countries that will not happen automatically. The fear that globalization leads to instability in the developing world.
The industrial world that increased global competition will lead in race to the bottom in wages, labour right, and employment practice. It leads to global imbalance. Globalization has led to an increase in activities such as child labor and slavery. People started consuming more junk food.
This caused, the degradation of health and spread of diseases. Globalization has led to environmental degradation. Globalization rapidly increase better trade so that more people are employed. Introduced new technologies and new scientific research patterns.
Globalization increasing the GDP of a country. It helps to increase in free flow of goods and also to increase Foreign Direct Investment. Negative Impact Too much flow of capital amongst countries, introduces unfair and immoral distributors of Income. Another fear is losing national integrity.
Because of too much exchange of trade, independent domestic policies are lost. Rapid growth of the economy has required a major infrastructure and resource extraction. This increases negative ecological and Social costs. SUMMARY Globalization is the integration of country with the world economy.
The three stages of Globalization : • Archiac Globalization • Proto Globalization • Modern Globalization. LPG – Liberalization, Privatization, and Globalization Multi National Company is a corporate organization which owns or control production of goods and services in at least one country to other than its