Impact of Globalization on Developing Countries

INTRODUCTION * globalization describes the process by which regional economies, societies and cultures wee establish integ judged by dint of a global net ladder of ideas. * This integration has been fueled by expert advances in communication, transportation and plenty that break down(a) national divisions and barriers. * globalisation is recognized through a number of trends such as violatement economic integration and liberalization trade regulation convergence of macroeconomic policies modification of the lineament and concept of nation state proliferation of supranational agreements and regulatory bodies and globalization of information systems. These trends ar associated with both positive and negative refers on human well-being, the intake and conservation of the environment, equity within countries and between maturation and developed countries, participation and democratic decision-making, food security, poverty tout ensembleeviation and others. 1 http//elearn. u siu. ac. ke/webapps/portal/frameset. jsp? tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_4144_1%26url%3D- GLOBALIZATION LECTURE. PPTX EFFECTS OF GLOBALIZATION ON develop COUNTRIES Globalization has brought in refreshful opportunities to developing countries.Greater glide slope to developed uncouth markets and technology transfer hold out promise, improved productivity and higher(prenominal) upkeep standards. But globalization has alike thrown up spic-and-span challenges like growing inequality across and within nations, volatility in pecuniary markets and environmental deteriorations. 2 This paper assesses the positive and negative impact of globalization on developing countries in the following dimensions 1. Economic 2. well-disposed 3. Political POSITIVE ECONOMIC concussion Increased Standard of existent Economic globalization gives disposals of developing nations gravel to outside(prenominal) lending.When these funds ar used on infrastructure including roads, health care, direction, and social services, the standard of living in the nation increases. If the money is used only selectively, however, non all citizens allow for participate in the benefits. Access to New Markets Globalization leads to freer trade between countries. This is one of its largest benefits to developing nations. Homegrown industries see trade barriers supervene and bemuse access to a much wider international market. The festering this generates allows companies to develop new technologies and produce new products and services.Access to New and More capital growth nations attract foreign investments resulting in better smooth consumption, deepens financial markets, and increases the microscope stage of market discipline. In most developing nations, the financial markets are not fully developed, as such globalization is a boost to the countrys financial markets. Employment Opportunities Because the wages in developi ng countries is furthest lower than that of developed countries, work such as software development, customer support, marketing, accounting and insurance is outsourced to developing countries like India.The workers in the developing countries demoralize employment. Access to technologies As a result of outsourcing, developing countries get access to the latest technology and technical improvements they are thus able to use the technologies to improve the standard of living. They can also utilize these technologies in settlement problems, for example advanced medicine to cure local anesthetic diseases. Increased ambition Due to the need to compete globally, companies have had to reduce prices, which is good for the consumer in such countries. In addition, there is improvement of goods and services accompanied by improved technology.Globalization is thus a win for consumers. NEGATIVE ECONOMIC IMPACT Widening Disparity in Incomes While an influx of foreign companies and foreign ca pital creates a reduction in overall unemployment and poverty, it can also increase the wage gap between those who are educated and those who are not. Over the longer term, education levels will rise as the financial health of developing countries rise, but in the short term, some of the poor slew will become poorer. not everyone will participate in an spinning top of living standards. Decreased EmploymentThe influx of foreign companies into developing countries increases employment in umteen sectors, especially for skilled workers. However, improvements in technology come with the new businesses and that technology spreads to domestic companies. Automation in the manufacturing and agricultural sectors lessens the need for ignorant labor and unemployment rises in those sectors. If there is no infrastructure to help the trifling train for the globalized economy, social services in the country may become strained trying to care for the new underclass. http//smallbusiness. hron. c om/effects-economic-globalization-developing-countries-3906. html Globalization for growth Countries in Asia Backed by sound economic policies and information technological advancements, the South-East Asian countries have prospered as their employment growth rate has increased tremendously. One fine example of this phenomenon is India which continues to have an economic growth rate of 8 percent or more per year. Easy access to foreign capital and increased foreign direct investment lays down the foundation for a competitive and yet, thriving market.Since the players increase in the market, the consumers not only get better products, but also at a cheaper price. Hence, another benefit is low inflation rate which helps the country to have a stabilized economy. Poverty has reduced in the Asian countries which have adopted liberalized economic policies. Companies from other countries bring their products with their technologies. Newer technologies in IT, production and inquiry cut do wn the production cost, and increase sales. Moreover, they also sharpen the skills of the local labor force. Globalization in AfricaAfrica is a huge continent with many countries which are downtrodden and poor mostly sustaining life on agriculture and aquaculture. Not only that, there are regions which are torn apart by war and violence, and hence steady income from a horse barn employment would work as a respite from the in-fighting. Education plays a major role in the development of any nation and is one of the important drawbacks in the growth of the African region. UNESCO believed that 48% of children in Africa were never ever enrolled in primary schools in the year 2000.This disappointing number can go down if African countries open their doors to free market policies. With significant players in the market, a major positive impact would be on the education and technological field of the African continent. More resources and FDI would be at bargain because of globalization and ensure lower exchange rate of local currency. Hence, it will indirectly help boom the economy. Though, globalization is not a magic trick wand and cannot wipe away all of Africas woes, but it can certainly create a favorable environment for a fair and stable government.Globalization would bring any African country more closer to repose of the world and any wrongdoing on the part of a government or a faction can be monitored and curtailed. Trade treaties and co-dependence in business is fostered by globalization. It can bring about a ample change in the political, economical, and social set ups in Africa. With more money, resources and people coming to Africa, the real and the most devastating problems of these countries could grab the limelight, and relief disturbance can be provided by the global community. Read more at Buzzle http//www. buzzle. com/articles/benefits-of-globalization. html