Adverse effects of globalization process on the Government and people of the Pacific Free Trade: Tariff and Import duties provide large amount of government revenue. Therefore the removal or lowering of basic tariff, import duties and other related taxes has a significant impact on government revenue. However, this forces the government to raise revenue in ways that do not disrupt trade, but to the introduction of new tax regime that is unfavorable to consumers. A good example of this is the proposed introduction of Value Added Tax (VAT) that increases the prices of goods and services as define in the Encyclopedia Britannica, (2009). VAT indiscriminately increases the price of goods, causing the people to be more dependent on cash incomes.
According to United Nations Educational, Scientific and Cultural Organization or UNESCO, migration refers to the movement of person or group of people who live temporarily or permanently in the destination but not their home country (n.d.). There are many types of migration, such as immigration and emigration. Moreover, due to the great of transportation and less strict of national barriers nowadays, there are higher in immigration rate each year. Several immigrants move to more developed countries, such as America, the United Kingdom and Japan in order to get more benefits and opportunities. However, there are three main effects that follow regarding high rate of immigration into those more developed countries.
The jobs that previous people did not take are left for the immigrants who take them and make the previous society better sustained with a larger workforce and a filled job positions. This is only one scenario. A large population increase could also lead to a competition between individuals, therefore causing house prices to skyrocket. A large demand for housing and not enough places to
High skilled labour and skilled-labour able to generate higher income than the low-skilled or unskilled labour. This is because technological changes can disproportionately raise the demand for capital and skilled labour over low-skilled and unskilled labour by eliminating many jobs through automation or upgrading the skill level required to attain or keep those jobs (Card and Dinardo 2002; Acemoglu 1998). Because of technological advances, there have been found that technological change has contribute the most to rising income inequality. In addition, Financial
But comparing illegal and legal immigrants, those who are legalized receive more welfare for the fact that they are more eligible to more programs. For the young and uneducated there is a competition with immigrants because they both have the same financial status and compete for the same jobs. The lower class of the United States if filled with immigrants but also contains natives who have not had such success financially and for them it is difficult to find a job and maintain it for the search for jobs is an issue in general in the U.S. When immigrants first entered the United States, Natives feared that immigrants would take their
Interrelation between Cultural Diversity and Economic Growth. Introduction Cultural diversity means the existence of vast cultures, ethnicities, beliefs and ideologies in a society which arise due to reasons such as, migration and colonization. For eons, nations, with unique qualities that sets them apart, have shared their differences, building up the society that we have today. In not only speaking and clothing, but also in other aspects, such as trading and sharing of mental and physical labor skills that has helped countries in East Asia or the Five Dragons; where their sustainable growth percentage is greater than the Western Europe countries, to achieve economic growth. Conversely, Economic Growth being the increase in the real gross
Recent Trends of Globalization However, despite financial globalization has increased the interdependence between countries’ economies, allowing more foreign net capital inflows to pour into developing and developed countries, there are still certain setbacks to such phenomenon. Some of which could be seen in the recent wave of financial globalization. In this new wave, there are two important developments worth noting: the drastic increase in the worldwide net capital flows and the increase in domestic investors using foreign financial services. As shown in figure 1 and 2, it is easy to see as the net capital flows surged dramatically since the 1970s, so have the proportion of net private capital. Which is approximately three times greater than official development assistance and official aid.
As the industry is fast-growth industry, there will be weak than slow-growth industry because they want earn back their capital fast as possible and the profit or revenue as much as the industry can do it. The slow-growth industry will be stronger than other industries those who are
Tourism is one of the world’s biggest industries .For developing countries it is also one of the biggest income generators. Early literature in tourism development emphasized the role of tourism in economic development ,particularly for developing countries. (Erbes,1973).People all over the world are more curious and enthusiastic and more willing to spend on travelling than any other thing. As a result tourism industry has build up extravagant economic contribution evident in many countries in the globe today. Every year, billions and billions of dollar are paid to key individuals such as tour operators ,hotel and lodging providers, and restaurateurs in return of satisfaction is generated among the millions of people who travel each year as tourist.
Disadvantages of Multinational Corporations: • Potential Abuse of Workers Multinational companies often invest in developing countries where they can take advantage of cheaper labour. Some multinational corporations prefer to put up branches in these parts of the world where there are no demanding policies in labour and where people need jobs because these multinationals can demand for cheaper labour and lower standard in healthcare benefits. • Threat to Local Businesses Another disadvantage of multinational corporations in other countries is that they have the potential to dominate the market. These giant corporations can dominate the markets they are in because they have the more renowned products and they can afford to even sell them at lower prices since they have the financial resources to buy in a much larger quantity. This can devour all the other small businesses offering the same goods and services.