Globalisation and corporate responsibility Case Study

Globalisation and corporate responsibility - Case Study Example ation has changed the economic aspect of the country through exposing the economy to competitive companies which plays a very minimal role in payment of taxes and improvement of the living standards of the people. Ecologically, globalization has led to a reduction in biodiversity and widening of the gap between the rich and poor in the society (Mullerat 2010). In Tanzanian case, the collapse of the textile industry due to the influx of secondhand clothes has increased the level of unemployment in the country, an aspect that has increased the poverty levels among the local population. Culturally, globalization has led to the exchange of cultural aspects among the global citizens. This has played a significant role in changing the consumption behavior of the local population. The integration of economies has had a major impact on economies of developing countries. Initially, these countries had tariffs which protected the interests of the local businesses. This is through limiting the amount and the quality of the products that were entering their economies. However, integration of economies has exposed these countries to intensive competition from developed countries. These are countries that have invested heavily in the modern technologies in order to reduce the costs of production. As a result, they are able to produce high quality products at very low costs. In the Tanzania case study, the integration of economies has made it hard for the government to control the influx of cheap clothes from developed countries. Initially, laws limited these clothes to only charity groups. However, with the increasing levels of globalization, the government is losing revenue which is directed towards developed countries. This is created unbalanced trade in the world . With the increasing levels of liberalization of markets, the local companies are unable to compete with multinational companies. These global firms have diversified their operations to different parts of the