Question

PLEASE ANSWER QUESTION.

1. What are the implications of globalization for middle and low income countries?----

2. Benefits of economic analysis for governments----

3. Understand the difference between calculating GDP at official exchange rates (OER) and purchasing power parity (PPP).---

4. Compare country GDP and Per Capita GDP for top 5 countries in each

Answer 1

The implications of globalization for middle and low income countries are job creation, cost effectiveness, huge profit margins and reduces child labor role. Globalization creates jobs; and opens job markets in areas of the globe that desperately need them. The wages and costs that in other nations are generally cheaper, which is a big cause that companies prefer to go the multinational route. Most of the multinational corporations climb the local wealth that is being obtained. This decreases the need for children in families to go to work to help support the household

However it is not good for small businesses in the developing and under-developed country. It is it very hard if not impossible, for start-ups and smaller businesses to compete. By monopolizing, they decrease the competition, which eventually lowers economic growth. Moreover the global corporations are well-known for not treating people fairly and are also known for ignoring rules and regulations, as well as turning a blind eye to injustice in the workplace. Moreover there is environmentally damaging emissions and waste. Global competitiveness contributed to increase in the pollution and global warming. Threats of land degradation, deforestation, irreversible damage to ecosystems, loss of bio-diversity and the danger of a permanent shortage of water are affecting millions of the majority vulnerable people. Furthermore, it has strong link to increasing inequalities in income and wealth