b) Impacts

c) impacts of globalisation and global companies on individual countries, governments, producers and consumers, workers, and the environment

on countries

• positive

  • adoption of advanced foreign production techniques

  • cross-border collaboration and innovation

• negative

  • deindustrialisation

  • wealth/income inequality

on governments

• positive

  • soft power through trade networks

  • less hostility through foreign dependency

• negative

  • weaker sovereignty

  • international trafficking/terrorism

on producers

• positive

  • cheap production factors

  • increased consumer pool

• negative

  • low profits from price cutting

  • low market share from a high competition

on consumers

• positive

  • decreased prices

  • increased product variety

• negative

  • information gaps

  • less local markets means a loss of culture

on workers

• positive

  • job creation

  • higher qualifications from training programs

• negative

  • offshoring

  • low wages from a high competition

on the environment

• resource exploitation

• deforestation/fracking

• greenhouse gas emissions