Globalisation

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advantage and therefore increase worldwide output. In order to procure these cheap materials from abroad MNCs must come up with a global transportation scheme, which in itself means global integration.

MNCs are the forefront of globalisation with regard to worldwide patterns of consumption. MNCs such as Nike target currently target the global market, distributing its goods in over 160 countries. MNCs tend to tactically heavily invest in nation-specific brand image in a bid to surpass solely national appeal, ensuring their goods are consumed on a global scale. The astute approach of MNCs to well-run campaigning increases the likelihood of their goods infiltrating domestic markets despite bearing much similarity to incumbent domestic products.

MNCs play a role in the development of globalisation by lobbying and coercing legislators into maintaining or implementing policies that facilitate an increased MNC presence in domestic markets. This can be achieved through deregulation ...

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relative living standards. Although globalisation has served to have a broadly positive impact, the ramifications of globalisations are quite different for MEDCs and LEDCs.

Both developed and developing countries have reaped the benefits of globalisation, since it instigates further exploitation of Ricardo's `comparative advantage' amongst nations participating in free trade. Under the model of comparative advantage, countries produce goods for which they have the lowest opportunity cost. Adherence to this model increases worldwide output of goods (as shown in fig 1), as countries specialise in the production of the good they can produce most bountifully. Developed countries such as ...

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