Coursework on the Impact of Globalization on Local Economies

Globalization is one of those topics that sounds easy to write about until you actually sit down to complete the coursework. There is plenty of information available about international trade, multinational companies, foreign investment and global markets. The problem is deciding what information is actually useful for your argument.

A common mistake is to treat globalization as something that is simply good or bad for an economy. In reality, its effects are much more complicated. A new international investment project might create jobs in one town while increased competition from imports puts pressure on businesses somewhere else.

When I approach this type of coursework, I start by looking at one basic question: how has greater international economic integration changed the people, businesses and industries in a particular local economy?

That question gives the assignment a clear direction and makes it much easier to move beyond description.

What does globalization mean in an economics assignment?

The first thing you need to do is explain what you mean by globalization.

In economic terms, globalization involves countries becoming more connected through the movement of goods, services, capital, technology, information and, to some extent, labour. International trade is an important part of it, but globalization is not limited to buying and selling products across borders.

For example, a company in one country might design a product, source components from several other countries, manufacture it somewhere else and sell the finished product internationally. A local business might also provide services to customers overseas using digital platforms.

The World Bank’s World Development Report 2020 provides useful background on global value chains. It explains how production has increasingly been divided across countries and estimates that global value chains account for almost half of international trade.

This definition gives you several possible areas to investigate, including trade, foreign direct investment, employment, productivity and local business activity.

Narrow the topic before you start researching

“Impact of globalization on local economies” is too broad to investigate properly in one coursework assignment.

I would narrow it down to a particular country, city, region or industry.

For example, you might ask:

How has globalization affected employment in a particular manufacturing region?
What effect has foreign investment had on a local economy?
Has international trade improved wages and employment in a particular region?
How has globalization affected small businesses?
Has increased trade contributed to regional inequality?

This makes your research much more manageable.

It also gives you a question that can actually be answered with evidence.

Instead of saying that globalization “creates jobs”, you can investigate whether employment changed after exports increased or a foreign company invested in the area. You can then consider whether other factors, such as technology or government policy, might also explain the change.

That is a much stronger economic argument.

Look at the effects on employment

Employment is one of the easiest areas to investigate because globalization can affect jobs in several different ways.

When businesses gain access to international markets, they may increase production and hire more workers. Foreign companies may also establish factories, offices or service centres, creating employment in the areas where they invest.

There is another side to the story, though.

Local companies can lose customers when cheaper or better products become available from overseas. If a domestic industry contracts, workers may lose their jobs or have to move into different occupations.

This means that you should avoid writing something as simple as “globalization increases employment”.

The more useful question is what type of employment is created, who gets those jobs and who might lose work as industries change?

The International Labour Organization has examined the relationship between foreign direct investment, global value chains and employment. Its recent research estimates that foreign affiliates supported around 125 million jobs globally in 2021, while also showing that the benefits are not evenly spread between countries and regions.

That gives you a good starting point for discussing both job creation and uneven economic outcomes.

Consider wages and productivity as well

Employment figures alone do not tell you whether local people are actually better off.

Suppose a new international company creates 5,000 jobs. That sounds positive, but you would still want to know how much workers are paid, what qualifications are required and whether the jobs provide opportunities for progression.

Productivity is another important measure.

When businesses become more productive, they can potentially produce more output with the same amount of labour and capital. Global competition can encourage firms to introduce new technology, improve management and invest in workers.

World Bank research on trade and employment found that higher exports were associated with increases in employment, labour earnings and productivity between 1995 and 2019. At the same time, the research found differences in how these gains were distributed among workers.

This is useful because it prevents you from assuming that an improvement in the overall economy automatically benefits every worker equally.

Pay attention to local businesses

Globalization does not only affect large companies.

Small and medium-sized businesses can also experience significant changes when international competition increases.

A local business might benefit because it can:

Sell products to overseas customers
Purchase cheaper materials from abroad
Adopt new technology
Work with international companies
Become part of an international supply chain

However, the same business could struggle if a much larger international competitor enters the market.

This is why the structure of the local economy matters.

A region with a strong export industry may benefit considerably from rising international demand. A region that depends heavily on businesses competing directly with imported products could experience very different results.

So when you choose a case study, look at what the area actually produces and what its main sources of employment are.

Don’t forget about regional inequality

One of the most interesting parts of this topic is that globalization does not affect every part of a country in the same way.

A country might experience economic growth overall while particular towns or regions struggle.

Research from the OECD has highlighted this issue. Its work on trade and regional labour markets shows that trade shocks can have much stronger consequences in regions where particular industries are heavily concentrated.

Imagine a region where a large share of workers are employed in manufacturing.

If international demand for that industry’s products increases, the region could see more investment, higher production and additional jobs.

If international competition causes the same industry to shrink, however, the consequences could be much more serious than they would be in a diversified city where workers can move between several different sectors.

This is why I would avoid making claims about a whole country when your evidence actually relates to one industry or region.

Use a real case study

A good case study can make the entire assignment easier to write.

Choose somewhere where you can find reliable statistics on employment, wages, exports, investment and business activity.

South Asia, for example, provides useful evidence because international trade, manufacturing and employment are closely connected in many economies across the region.

A joint World Bank and ILO study of South Asia found that exports can support employment and wage growth, but that the gains are not necessarily shared equally among workers. Education, skills and access to better employment opportunities can influence who benefits most.

You could use evidence like this to build a more balanced argument.

Rather than writing:

Globalization has benefited South Asia.

You could argue:

Increased participation in international trade has created employment and income opportunities in parts of South Asia, but the distribution of these benefits depends on workers’ skills, the type of industry involved and access to productive employment.

The second statement gives you something to prove and evaluate.

Use statistics carefully

Statistics can make your coursework much stronger, but only if you explain why they matter.

For your case study, useful indicators could include:

Employment and unemployment
Average wages
Export values
Import values
Foreign direct investment
Labour productivity
Regional GDP or GVA
Industry-level employment
Poverty rates
Measures of inequality

Try to compare figures over several years rather than relying on one number.

For instance, if exports increased by 20%, don’t immediately conclude that globalization caused employment to rise. Other things could have happened during the same period.

Technology may have changed. Government policy may have changed. Consumer demand may have shifted. Exchange rates may have moved.

This is where economic analysis becomes important.

You need to distinguish between correlation and causation.

The WTO’s current trade statistics are useful for establishing the broader scale of international trade. Its 2025 statistics reported global trade in goods and commercial services of approximately US$34.89 trillion, with services accounting for 27.5% of global trade.

A figure like this provides context, but it does not by itself prove what happened in your chosen local economy.

Your local evidence should do that work.

Explain global value chains

Global value chains are worth including if you want your coursework to go beyond basic definitions.

Think about a smartphone, for example. Its design, software, components, assembly, transportation, marketing and sales may involve businesses operating in several countries.

This means that a local economy does not necessarily have to manufacture an entire product to benefit from globalization.

A region could specialise in:

Component production
Software development
Logistics
Research and development
Business services
Marketing
Technical support

The World Bank has argued that participation in global value chains can generate significant income gains, particularly when countries develop the skills, infrastructure and institutions needed to participate effectively.

This gives you an opportunity to discuss specialization and comparative advantage while also recognising that not every country or region captures the same amount of value from international production.

Think about the disadvantages as well

A good coursework assignment should not spend ten pages explaining the benefits of globalization and then mention the disadvantages in one paragraph.

There are several potential problems worth examining.

Globalization can contribute to:

Job losses in industries exposed to strong import competition
Pressure on some groups of workers
Greater dependence on international markets
Regional economic inequality
Vulnerability to disruptions in international supply chains
Environmental pressures
Greater competition for smaller businesses

The IMF has also examined how the gains from globalization are distributed. Its research highlights differences in how globalization affects income groups and shows why national economic gains do not necessarily translate into equally shared benefits.

This is an important point for your evaluation.

You can acknowledge that globalization may increase total economic output while still arguing that governments need policies to help workers and regions that lose out.

Both statements can be true.

Discuss what governments can do

Once you have examined the winners and losers, consider the policy response.

Governments cannot necessarily prevent every economic change caused by international competition. They can, however, influence how people respond to those changes.

Possible policies include:

Investment in education and training
Support for workers who lose their jobs
Regional development programmes
Better transport and digital infrastructure
Assistance for small businesses
Investment in research and innovation
Social protection
Policies that help domestic firms enter international markets

The ILO’s Employment and Social Trends 2026 discusses the continuing importance of skills, productivity, social protection and labour-market institutions in dealing with changes in the global economy.

This can help you develop a more sophisticated conclusion.

The issue is not necessarily whether a country should accept or reject globalization. The more interesting question is whether its institutions can help workers and businesses adapt while making sure the benefits are not concentrated in a small part of society.

Use current research alongside economic theory

You should still use established economic concepts.

Comparative advantage can help explain why countries specialise in particular products and services. Economies of scale can explain why firms may become more competitive when they access larger international markets.

But don’t stop there.

Modern globalization also involves digital trade, global supply chains, foreign investment, automation and geopolitical uncertainty.

UN Trade and Development’s Trade and Development Report 2025 is useful for exploring the changing relationship between international trade, finance and economic uncertainty.

Using recent research alongside established theory shows that you understand both the underlying economics and the way the global economy is changing.

A practical structure for the coursework

If you’re struggling to turn your research into an actual essay, the following structure is a useful starting point.

Introduction

Define globalization, introduce the local economy or case study and state the main argument you intend to develop.

The relationship between globalization and the local economy

Explain international trade, FDI, global value chains and international competition.

Employment and wages

Examine whether globalization has created or displaced jobs and consider what happened to wages and productivity.

Local businesses and investment

Look at multinational companies, SMEs, investment and access to international markets.

Inequality and regional differences

Consider whether different workers, industries or communities have experienced different outcomes.

Government policy

Discuss policies that could increase the benefits of globalization or reduce its negative effects.

Conclusion

Return to your original question and give a clear judgement.

Don’t introduce completely new evidence in the conclusion. Instead, bring the main findings together and explain what they mean.

Choose your sources carefully

Not every website that discusses globalization is suitable for university-level coursework.

I would give priority to sources from organisations that collect economic data or conduct original research, including:

World Bank
OECD
International Labour Organization
World Trade Organization
IMF
UN Trade and Development
National statistical offices
Central banks
Peer-reviewed academic journals

Whenever possible, go back to the original report rather than citing a website that happens to summarise it.

This is particularly important when using statistics. Check the date, geographical coverage, definition of the indicator and methodology before using a figure in your argument.

If you need additional support with planning or developing an economics assignment, you can also look at economics coursework help. Any material you use should still be checked against the original academic or institutional sources before you submit your coursework.

Focus on analysis rather than filling the page

The biggest mistake I would try to avoid is turning the assignment into a collection of facts.

You might find statistics showing that exports increased, FDI rose and employment improved. Listing those figures is not enough.

Ask what connects them.

For example:

Exports increased → foreign demand increased → local firms expanded production → employment increased.

Then take the analysis one step further:

But did the new jobs go to workers who lost employment elsewhere? Were wages higher? Did productivity increase? Did the benefits reach smaller businesses?

Those questions give your coursework depth.

You can also consider alternative explanations. If employment increased at the same time as exports, perhaps investment in infrastructure or a change in government policy also played a role.

That is the type of evaluation lecturers generally look for in economics coursework.

Final checklist

Before submitting your assignment, read through it and ask yourself:

Have I defined globalization clearly?
Have I selected a specific local economy or case study?
Have I explained how globalization affects that economy?
Have I considered both positive and negative effects?
Have I discussed employment and wages?
Have I considered productivity and investment?
Have I looked at the position of local businesses?
Have I examined regional or income inequality?
Have I used recent and reliable statistics?
Have I explained the economic mechanisms behind my evidence?
Have I distinguished correlation from causation?
Have I considered alternative explanations?
Have I discussed possible government responses?
Have I reached a clear judgement in the conclusion?

The strongest coursework on globalization is not the one with the largest number of statistics or the longest list of advantages and disadvantages.

It is the one that takes a broad issue and investigates what actually happened in a particular economy.

Globalization can create new markets, attract investment, increase productivity and generate employment. At the same time, it can expose local industries to competition and leave some workers and regions struggling to adjust.