Impact of Globalization on London: A Comprehensive Analysis

Impact of Globalisation

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalization means incorporation of various markets over the economy globally that lead to
improving the connection of national economies. In general, globalisation refers to movement of
free trade of resources like goods, capital, services, people, information and technology. The
markets that are familiar with globalization are basically financial markets, including capital
markets, insurance markets, money-credit markets, commodity markets (coffee, oil, gold, tin)
and product markets ( including electronics products and motor vehicles). With the advancement
of transport and telecommunication sector due to globalization both social and economical
conditions of a country has become interdependent.
The globalisation impact the whole economy, by eliminating any kind of restrains that can be
caused by geographical structure of a place by creating foreign exchanges, job opportunities,
education, media, medical services, electronic and consumer goods globally.
In this present assignment, the following essay focuses on the importance of globalisation,
advantages and disadvantages of globalisation, it’s positive and negative impacts in London and
lastly the ways globalisation affect the work of people. Here, prime location taken into
consideration is London as it capable of generating resources and various opportunities
worldwide.

MAIN BODY
Advantages of globalisation
Globalisation is effective to bring various benefits to the national economy and to international
producers (Beck, 2015). Due to the globalisation organisation can now access various resources
like cheap raw material globally that leads to increase in cost competition in local as well as
international market. Globalisation also increases the inward investment flow along with sharing
of new technology and knowledge among countries. Globalisation also encourages more and
more employment around the globe by creating more job opportunities. One the most significant
advantage of globalisation is dropping of standard production cost due to high product demand
and profit attended through economical scale.
Disadvantages of globalisation
Along with various advantages, globalisation has several impending disadvantages. It includes
over standardisation of products and services due to branding. In case of big multinational
companies, diseconomies of scale can arise it means complexity regarding managing auxiliary
activities over different countries can come into existence (Broner and Ventura, 2016).
Globalization can lead to cause of deindustrialization that will minimize the manufacturing base
of a countries economy. Structural changes are increasing due to globalization that increases in
the loss of job and structural unemployment. Globalization is considered to be one of the most
significant reasons for raising the pollution and global warming together with enhancing the
exhaustion of non-renewable resources.
The Impact of globalisation over London
London is considered as the capital of globalisation. Economy of the city is highly influenced
both positively and negatively mostly through telecommunication and tourism sector
(Rotherham, 2017). Some of the impacts of globalisation have been studied below:
Positive Impact