Who has benefited from globalisation and who has not?

TNCs are the main group that benefit from globalisation. They can command lower wages from their workers through outsourcing as they find cheap labour in LICs, can avoid tax payments and gain access to cheap resources while not having to maintain strict environmental and working conditions. Through this, however, labourers in the origin country lose out as the number of job positions remaining for them is reduced and they cannot demand higher wages when the TNCs are easily able to access cheap labour from abroad.
Some people in poorer target countries where TNCs outsource their manufacturing production benefit from the new employment opportunities introduced by these foreign countries. This however, is normally only the (sub-)urban populations - where the companies are based - meaning that these countries can experience growing income disparity as the poorer, rural citizens do not have the same opportunities and may be outcompeted by these larger companies and larger producers who have attracted foreign investment.

GM
Answered by Grace M. Geography tutor

2229 Views

See similar Geography A Level tutors

Related Geography A Level answers

All answers ▸

Describe the formation of a wave cut platform.


How do I write a concise but high-scoring introduction for an A2 essay?


What are some of the impacts associated with a country whose population is ageing?


Using a case study, describe a successful sustainable transport scheme


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning