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 技术转让
Positive Impact 积极影响
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 负面影响
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 社会影响
Positive impact 积极影响
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.(责任编辑：BUG)