Redding (1999) defines that globalisation as the increasing integration between the

markets for goods, services and capital and at the same time the breakdown of borders.
Other researcher found that the process of globalisation not only includes opening up of
world trade, development of advanced technologies such as communication,
internationalisation of financial markets, growing importance of multi-national
corporations (MNCs), population migrations and generally increased mobility of persons,
goods, capital, data and ideas but also critical problems such as infections, diseases and
pollution (Braibant, 2002).
Thus, from many point of views, globalisation is seen to be the borders between
countries, governments, the economy and communities, increasing liberalization and
openness of markets, particularly through the elimination of barriers to trade in goods
and services and the development of integrated international financial market. PRUS
(2001) simplified the term of globalisation as a process of increasing connectivity, where
ideas, capital, goods, services and people are transferred across country borders.
Labour and employment
Positive Impact
However, the process of globalisation can bring more jobs opportunities in host country
when MNCs move their production operation into developing countries. According to
Rama (2003), job creation only will occur in export-processing zones where large
amount of work forces are required in order to keep the production running.
A good example of jobs creation would be Coca-Cola decided to invest in Malaysia with
a new bottling plant, consist of $301 million investment. They stated that this investment
will able to create 600 to 800 jobs at the plant with 8,000 jobs connect with local
suppliers (Agence France-Presse, 2010).
Negative Impact
Woods (2000) stated that the government of developing countries start to compete with
each other by deregulate their policy to attract foreign direct investment (FDI) and multinational corporations (MNCs). Hence with lower the wages and taxes rates enable the
investors to avoid the risk of losing their capital invested in developing country.
Research done by The Economist (2001) and Woods (2000) and found that when the
government of developing countries increasing minimum wage and labour safety
standards in order to protect local workers' rights, this might could cause MNCs relocate
their operation to another developing countries, where that particular country's labours,
who were probably willing to accept low wages by any standards, lack of union
representative and legal protections such as child labour and other gross labour that
abuses by global companies.
Technology transfer

Positive Impact
Transfers of technology depend on resource available by MNCs with the ability to
achieve the level of technology development in order to make them competitively in
global market. Usually developing countries unable to do research and development on
their own as the technologies that required implementing the competition strategy are
most likely to come from other countries through technology transfer (Stewartet al.,
2003). Hipkin and Bennett (2003) stated that the extent of developing countries,
participation in global economy depend on their ability to respect where the importance
of technological transfer cannot be overemphasized.
There are ten modes of technology transfer which has been identified by Peter Buckley
(1985, citied in Transnational Corporations and Technology Transfer to Developing
Country) but the most conventional form will be whole-owned subsidiaries. This form is
also known as FDI where MNCs can lower their transaction cost (Cantwell and Dunning,
1994).
Hence technology transfer to subsidiary in other country allow developing country to
learn the operation of new technology. Sometime subsidiary didn't allow local firms to
learn but they somehow find their way to obtain the technology such as hiring operator
from that particular subsidiary (Mansfield and Romeo, 1980).
Negative Impact
However globalisation can also bring negative impact to developing country. Certain
MNCs transfer their technology to developing country as those technologies might cause
health problem to employees as well as local citizens.
Good example would be Bhopal disaster caused by America MNCs' subsidiary, Union
Carbide India Limited that produces pesticides. Sophisticate technology bought into
India but the leakages of chemical caused more than 500,000 people suffer from the
disaster (Eckerman, 2005).
Social impact
Positive impact
Globalisation can bring good and bad effect to developing countries. Developing able to
reduce the amount of population that live below poverty level with the help of
globalisation as the effect of job creation has been achieved (Lee and Vivarelli, 2006).
Local citizens are able to get a job and ensure the survival of their family and improve
their living standard.
Negative Impact
In this era of globalisation, social aspect is tightly related to the effect of the waves of
globalisation such as living standard, career, families and their communities. In this case,
globalisation are claimed that it is a method to organise someone's life which consist of

assimilation, communication among people, organisation, and the government as well in

other part of the world.
Hence, it was also called the method that used driven by global trade and investment
aided by information technology. Besides, this issue is also directly inter-related with
some other issues such as unemployment, disparity and scarcity, and environment as
the chain effect of the waves of globalisation (Globalisation 101, 2002).
The inter-relationship between the technology and economic is very critical and it
succeeded in consisting the rise of the theoretical approaches where the centrality of
changes in technology have been accepted and the dynamic force of the term innovation
in the elements of economical changes (Freeman, 1998; von Tunzelmann, 1995).
According to Nussbaum and Sen (1993), investment in technology appears to have an
optimistic link to wider philosophy in developing economic interests which include social
choices and freedom capability in longevity and education.
Globalisation on impact of the countries' economy
Positive Impact
According to Baghwati (2004) globalisation is playing the significant role of enhancing
economic affluence by offering new hope to developing countries. Gangopadhyay and
Chatterji (2005) saying that globalisation has been characterised as a reduction in trade
barriers such as free flow of goods, services and labour from one country to another.
Richardson (2000) contends with these views as, the effect of this is increasing the trade
which turn into increased income for developing countries and serves as an opportunity
to stabilise their economies by taking the advantages of trade. This statement is true and
has been proving by (Richardson, 2000; Dierks, 2001) that globalisation has greatly
reduced the trade barriers between countries through adjustment of tariffs and import
duties.
Negative Impact
The rise in globalisation has increased capital flow into developing countries' economies.
Foreign Direct Investment injects capital into developing countries in terms of stabilizing
the countries' economic. This is also a benefit that increased the countries' financing
through loans and grants from developed countries (Aurifeille, 2006). However, there will
be net capital inflow that could lead to negative effects on trade.
Chan and Scarritt (2001) noted that the large capital inflows were caused by the
appreciation of exchange rates and inflationary pressures that impact on the country's
current account. This means that globalisation in improving the countries' economy could
actually stop the progress of the economy unless the host countries' balance of payment
focuses on the foreign plant where the export is more than import.
The adjustment in trade barriers has lead to the promotion of specialisation to
developing countries because they are able to concentrate on the production of
commodities which can be produced at the least cost (Aurifeille, 2006). Developing

countries fully use the advantage of globalisation to enhance their income through
trading goods which they can produce most effectively.
Such development is giving developing countries an opportunity to obtain goods that
prove expensive to produce in their own countries. Corsi (2009) saying that, competition
is always an effective way of enhancing innovation to produce better quality goods.
Thus, globalisation had enhanced competition as the flow of goods and services
between countries has becomes easier.
Globalisation impacts on economic and environment
Negative Impact
Economic and environmental problems show few signs of improvement for a large share
of the world's people but when comes to external debt levels, weak export and real
income growth, it often enter a mutually destructive relationship with environmental and
resource degradation which linked to the agriculture and urban activity. The important
connection between economic and environmental problems can be clearly seen in the
widespread social and economic impacts towards soil erosion, deforestation, urban
congestion, unmanaged chemical such as heavy metals, air pollutants, solid and liquid
industrial and residential waste (Long, 1990).
According to Huber (1982) and Simonis (1989), ecological modernisation was one of the
primary modes of sustainable development which comprised both a theory and a policy
or political programme based on the view that comprehensive political and economic
change could be implemented to achieve a less material and energy-intensive economy
through the application of integrated and preventive resource and pollution-reduction
strategies.
This technologically-intensive mode of production would not be a viable option for lower
income nations because the intensive technological basis of ecological modernization
suggests that its effective operation and flow-on benefits are probably beyond the reach
of poorer nations. Indeed, rapid global technological progress has often resulted in the
Intensification of uneven development rather than enhanced opportunities for the poor
(Freeman, 1987). The post-materialist solution for technologically advanced economies
would
Conclusion
Although globalisation can help developing countries to grow and become developed
countries through different kind of benefits enjoyed by them but at the same time
globalisation can bring disaster to developing countries, even can bring the whole
country collapse in few months times.
Research done by scholars indicated that globalisation can be a benefit to developing
country but at the same time it's also a threat to developing country. However the net
benefits enjoyed by developing countries is greater than net cost paid as shown in this
literature view can say that globalisation can actually bring benefits to developing
countries.