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Advantages of localization:

  • its policies would be more people-centered than profit-centered.
  • Environmental damage would be reduced.
  • Quality of life would improve.

Disadvantages of localization:

  • Will increase poverty (poor countries cannot participate in the free trade anymore, how will they raise their incomes if they have no resources?)
  • Would encourage xenophobic and extreme nationalist views.

These answers have been taken from the "Theories and Practices of Development" Book.

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