Developed and Developing Economies

globalisation

Developed and developing economies are both affected by globalisation.

Here’s how:

Developed Economies

• Cheap production of goods abroad, lower prices and more choice

• Structural unemployment - industries going into decline because of offshoring

• Lower share of global GDP due to emerging economies such as BRICS

• Higher deficits as more is being imported from abroad

Developing Economies

• Creation of jobs

• Increased productive efficiency - MNCs can bring their production expertise to developing countries

• Increase in FDI

• However, MNCs can exploit workers - lower standards of working conditions in developing economies

• “Brain drain” - skilled labour leaving developing countries to work in developed ones

We hope you enjoyed reading this content. Want to pass your Economics exams? Hire a specialist economics tutor today. At mrbanks.co.uk, we supply online Economics tuition to support you through your exams.

Online tuition provides so many benefits.

It’s cheaper. It’s less time-consuming. It’s effective.

Want to try before you buy? Contact us to book a trial lesson. You can see if online tuition is right for you.

Contact us today and book a trial lesson with an online Economics tutor.