Discuss the positive and negative impact of globalisation with Assignment

Discuss the positive and negative impact of globalisation with reference to two contrasting countries. (two countries are UK a - Assignment Example However, the ongoing financial crisis that resulted from the collapse of the real estate market has slowed the process of globalization, which is sometimes blamed by the critics for the surge in unemployment and inflation. Based on the reports of Federal Reserve Bank of Dallas, Odom and Koech (2010) highlighted that the economic recovery has been slow in developed countries including the UK, while the developing countries including India are making fast economic progress. The compiled reports of Central Intelligence Agency pointed that the UK had recorded a GDP growth rate of 1.6% in 2010, which was better than its negative growth rate of -5% in 2009 (United Kingdom, 2011). However, the Central Intelligence Agency also remarked that India had recorded a growth rate of 8.3% in 2010, which was marginally greater than its growth rate of 7.4% in 2009 (India, 2011). Since India and the UK represent the developing and the developed economies respectively, this paper compares the positive a nd the negative impacts of globalization on these two countries. 2. Discussion Globalization has definitely increased trade in India and the UK besides encouraging entrepreneurship among the youth of these two countries. Due to globalization, some economic sectors of India will have more advantage than the UK, while there will be some economic sectors where the UK will have more advantage than India. The following section contrasts the positive and the negative effects of globalization in India and the UK. 2.1. Manufacturing: Since India has lower labour costs than the UK, globalization has caused an increase in the manufacturing activity in India, while the manufacturing activity in the UK has comparatively slowed down as industries favor India as the low cost manufacturing base (Economics Help, n.d.). 2.2. Employment: When the manufacturing industries of the UK shift their bases to India or another developing country, there will be loss of employment in that particular sector of t he UK, while India will gain employment in the manufacturing sector. The unemployment rate in the UK was 7.9% in 2010, while it was 7.6% in 2009 (United Kingdom, 2011). However, the unemployment rate in India was 8.3% in 2010, while it was 7.4% in 2009 (India, 2011). The unemployment in manufacturing sector in the UK will be offset by employment generation in other sectors, such as finance and insurance, which shows that globalization causes shift in jobs from one sector to another without causing major catastrophic changes (Economics Help, n.d.). 2.3. Business Process Outsourcing (BPO): India has highly educated and talented professionals well-versed in speaking, writing, and reading English language. Due to a large pool of competent workers expert in providing IT enabled services to the business clients, several countries, such as the USA, Canada, Germany, Switzerland, and the UK outsource their work to India. Globalization has helped India to expand its BPO industry, while the UK has been a laggard due to the high labor and infrastructural costs. The size of the Indian BPO industry is estimated to be around $69 billion as of 2010 because the developed countries outsource their business assignments to India where the wages are nearly 80% lower than