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Explain any challenges of globalisation for developing countries (North-South divide).

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Poverty

  • The poverty gap still continue to increase between the rich and poor despite globalisation
  • The number of desperately poor people still increases

Growth

  • Developed countries which managed to install honest governments keep their inflation rate down and balances their budgets while those developing countries fail and as a result fail to attract FDI necessary for economic growth 
  • If the developed countries struggle with recession, they will scale down their purchase from developing countries

Trade

  • Rich countries continue to subsidise their agricultural production making it difficult for developing countries to compete 
  • They insist on the developing countries to eliminate their tariffs on manufactured goods 
  • Most of the poor countries have little foreign trade
answered by Master (629k points)
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