These countries reduce tariff barriers, which makes it easier for nations to trade with each other and. They are able to participate in the economic activities of the global community and the most advantageous term is to get the highest prices for exports and lowest prices for the imports. The countries that have lowered their tariff barriers have gained increases in employment and national income. It is due to the capital shifts from import-competing industries to expanding, newly competitive export industries. In addition to providing jobs, companies moving to developing countries offer higher wages compared with those in domestic companies operating in the countries. Other than that, globalization also increases foreign direct investments (FDIs) in Third World countries. FDIs bring not only an expansion of the physical capital stock but also technical innovation such as new production methods and management techniques.
Globalization causes labour intensive industries such as textiles and footwear in rich countries to move their production to countries in which labour is cheaper. It sometimes results in the exploitation of millions of workers in countries that do not give worker rights to organise. Workers in poor countries may have to work 12 hours, seven days a week with few or non-existing protections for health and safety. In some countries, globalization leads to exploitation of child labour. Goods produced in such countries under these conditions undermine those produced in richer nations. Within rich countries, there is growing inequality as unfair competition from countries repressing workers" rights pushes down the earnings of the less skilled sections of the workforce.
The spread of globalization undoubtedly bring changes to the countries it reaches, but changes are an essential part of life. Changes do not mean the abolition of traditional cultures and values. New global media, such as the internet and electronic mail, has proven to be a powerful means of projecting traditional culture.
