SOCIAL STUDIES - SEC 4

CHAPTER 2: SUSTAINING ECONOMIC DEVELOPMENT

Impact of Globalisation
Impact Economic Improvement in Standard of Living Explanation/Elaboration 1. Many countries enjoyed increase in income levels. 2. Government in turn make use of revenue for education, health, defence, housing, and transportation. 3. As such, people living in these countries can enjoy a higher standard of living. 4. With free trade, consumers can purchase a variety of foreign goods besides local goods. 5. One can also choose from local brands or those imported from other parts of the world. Increased Competition Among Nations Investment and Market 6. Countries face more intense competition. 7. Government compete with one another to attract TNCs to invest in their countries. 8. Many people decided to set up their production facilities in China, when it rst opened its doors, as the cost of production is lower. 9. Today, China has become an attractive country for investors and poses a strong challenge to other countries. 10. Countries that are able to offer incentives to foreign investors will be more successful. 11. However, developing countries nd it difcult to attract investors due to reasons such as poor infrastructure. Talent 14. With globalisation, people are able to move from country to country in search of leisure activities and employment. 15. People who are highly skilled are in high demand. 16. It has also presented the workforce with the opportunity to nd employment in another country. Widening Income Gap Between Rich And Poor Widening Income Gap Between The Rich And Poor 10. Globalisation has contributed to the spread of poverty in many other countries. 11. In a globalising world, competition for investments and markets is intense. 12. It has contributed to the spread of poverty in many countries. 13. The developed countries are experiencing rapid income growth as they own most of the manufacturing activities. 14. TNCs in developed countries are able to draw investments, skilled people, and resources away from poor areas and relocate to other regions. 15. Developing countries face trade restrictions and are not capable of producing better quality goods.

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SOCIAL STUDIES - SEC 4

CHAPTER 2: SUSTAINING ECONOMIC DEVELOPMENT

Impact Social Increased Awareness of Foreign Culture

Explanation/Elaboration 1. Through globalisation, people have become more aware of different cultures. 2. People can learn about history, culture and way of life of people around the world through travelling, surng the internet and watching foreign movies. 3. Corporations like Starbucks and McDonalds have standardise methods of operation and thus have created a largely homogenous culture across the world. 4. Spread of pop culture across the globe. 5. To many people, these cultures inuenced their youths negatively as they lose interest in the local culture.

Loss of Local Culture

Environmental

Environmental Degradation

Deforestation and Related Problems 6. Rainforests in many countries have been cut down to make way for the development of industries, agriculture, housing, and transportation. 7. Some governments allow trees to be cut down at a rapid rate as it can generate more revenue. 8. An example is in Indonedsia where deforestation is occurring at a rapid rate. 9. Forests are also being cleared for development projects and these enable Indonesia to achieve a higher level of economic development.

Global Warming

10. The movement of goods freely around the world contributed to global warming as aeroplanes and ships produce large quantities of greenhouse gases. 11. This led to an increase in global temperature.

Environmental Management

12. Some argue that globalisation brought about an increase in awareness of environmental management. 13. The amount of energy needed by a globalising world is enormous. 14. There has to be a sustained supply of power and one way which this can be achieved is through conservation. 15. Alternative energy sources such as wind, solar energy and geothermal power can provide some of the energy needed. 16. Hence, the challenge is for countries and organisations to source for alternative energy sources to generate power.

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