2015-08-21
1531
1. If a developing country wishes to develop a new manufacturing industry, it may face higher costs than advanced industries in the west, who will benefit from years of experience and economies of scale. To develop an industry it may be necessary to have protection from cheap imports; this gives the firm chance to develop and gain economies of scale.
2. Globalization keeps developing countries producing primary products. Developing countries may have a comparative advantage in primary products, however, this offers little scope for economic growth. Primary products have a low income elasticity of demand. Therefore, with economic growth demand for products increases only slowly.
3. Environmental costs. One problem of globalization is that it has increased the use of non renewable resources. It has also contributed to increased pollution and global warming. Firms can also outsource production to where environmental standards are less strict.
4. Multinational companies may be able to force out local retailers, leading to less choice for consumers and less cultural diversity.
5. Movement of labour. Globalization enables workers to move easily around. However, this may cause the highest skilled workers of developing countries to leave for better paid jobs in developed countries.
6. Tax competition and tax avoidance.Multinational companies like Amazon and Google, can set up offices in countries like Bermuda and Luxembourg with very low rates of corporation tax and then funnel their profits through these subsidiaries. This means they pay very little tax in the countries where they do most of their business.
Ex.1. FindtheEnglishequivalentsinthetext.
світова інтеграція, взаємозалежність національних економік, інвестування в підприємства в інших країнах, розвиток технологій, міжнародна торгівля та інвестиції, нова стадія (фаза) економічного розвитку, виробничий потенціал, прихильники глобалізації, підвищувати стандарти життя, багатонаціональна (транснаціональна) компанія, спірне питання, робити висновки, спеціалізація виробництва, вхідні інвестиції, міграція робочої сили, країна-отримувач, економія (ефект) від масштабу, еластичність попиту, екологічні витрати, культурне різномаїття.
