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Economic impact of globalisation:

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  Improvements in standard of living Countries earn more money as they trade and invest in each other. Such money is then used by the government for development (e.g. education, health, housing etc.). People who live in these countries can therefore enjoy the benefits and their standard of living increases. People also have a broader variety of choices in terms of the products which they buy.
  
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  Increased competition among nations - investment and market, talent. More intense competition is something that countries have to face in order to attract Transnational Corporations (TNCs) to invest in their country e.g. China, Singapore. Many developing countries find it difficult to attract foreign investments due to their poorly developed infrastructure or political instability.
  

Such countries often remain poor. Countries also strive to attract talented people to work in their country e.g. India, highly skilled people migrating to other countries – brain drain.

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  Widening income gap between the rich and the poor Developed countries draw away TNCs, investments, skilled people and resources away from poor areas. Because the developing countries are unable to produce better quality goods and higher priced goods, they also face trade restrictions from the developed countries. The gap between the rich and the poor grows bigger and this can lead to international tension.
  
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  Globalisation has both positive and negative impacts. Increased incomes mean that many people experienced an improvement in their standards of living. However, there are also many people who do not get to enjoy the positive impacts of globalisation.
  

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   Social impact of globalisation:
   

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  The loss of local culture occurs, especially when TNCs, or global brands such as Starbucks and McDonalds dominate the consumer market in developing countries. This results in a homogenous culture across the world. The spreading of different foreign cultures across other countries is perceived as uncomfortable when foreign cultures affect their youths and they lose interest in the local culture. Some people may see these foreign cultures as being forced into them e.g. pop culture (rap music, MTV, Hollywood).
  
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  Increased awareness of foreign culture. However, through globalisation, people can become more aware of different cultures by travelling or browsing the Internet. This enables people to become more understanding and tolerant to other countries as well as helps to reduce misunderstanding among countries.
  

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