Impact of Globalization on Developing Countries

cosmos * Globalization describes the process by which regional economies, societies and cultures lay down become integ come ind through a global network of ideas. * This integration has been fueled by technological advances in communication, transportation and trade that break down discipline divisions and barriers. * Globalization is recognized through a sum of trends such as growing scotch integration and liberalization trade regulation intersection point of macroeconomic policies modification of the role and concept of nation state proliferation of supranational agreements and regulatory bodies and globalization of information systems. These trends argon associated with both absolute and negatively charged impacts on human well-being, the use and conservation of the environment, equity inside countries and between exploitation and developed countries, breakicipation and democratic decision-making, food security, poverty embossment and others. 1 http//elearn. usiu. 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- globalisation LECTURE. PPTX EFFECTS OF GLOBALIZATION ON DEVELOPING COUNTRIES Globalization has brought in new opportunities to growing countries.Greater main course to developed realm grocery stores and engineering science transfer hold out promise, modify productivity and higher living standards. But globalization has excessively thrown and twisted up new 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 pursual dimensions 1. Economic 2. Social 3. Political POSITIVE ECONOMIC IMPACT enlarge Standard of Living Economic globalization gives governments of developing nations access to external lending.When these funds are used on stem including roads, health care, education, and companionable run, the standard of living in the country increases. If the m atomic number 53y is used more(prenominal)(prenominal)over selectively, however, not all citizens will go in in the benefits. Access to impudently Markets Globalization leads to freer trade between countries. This is one of its largest benefits to developing nations. Homegrown industries picture trade barriers fall and have access to a much wider international market. The growth this gene roams allows companies to develop new technologies and produce new products and services.Access to New and more than capital Developing nations attract foreign investments resulting in better brush up consumption, deepens financial markets, and increases the degree 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 developing co untries is far 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 get utilization. Access to technologies As a result of outsourcing, developing countries get access to the latest technology and technological improvements they are thereof able to use the technologies to improve the standard of living. They can alike hold these technologies in solving problems, for example advanced medicine to cure local diseases. Increased competition Due to the need to compete globally, companies have had to squeeze 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 capital creates a red uction in general 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 chute as the financial health of developing countries rise, scarce in the niggling term, some of the poor will become poorer. Not everyone will participate in an elevation of living standards. Decreased EmploymentThe influx of foreign companies into developing countries increases employment in many 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 outlandish sectors lessens the need for unskilled labor and unemployment rises in those sectors. If there is no infrastructure to help the unemployed train for the globalized economy, social services in the country may become strained trying to care for the new underclass. http//smallbusiness. hron. com/effects-economic-g lobalization-developing-countries-3906. hypertext markup language Globalization for Developing 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 study 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 research cut down the production cost, and increase sales. Moreover, they also sharpen the skills of the local labor force. Globalization in AfricaAfrica is a gigantic continent with many countries which are downtrodden and poor mostly sustaining life on agriculture and aquaculture. Not only that, there are regions which are rupture apart by war and violence, and hence steady income from a shelter 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 neer 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 hand because of globalizati on and ensure lower exchange rate of local currency. Hence, it will indirectly help boom the economy. Though, globalization is not a magic wand and cannot wipe away all of Africas woes, but it can surely create a favorable environment for a fair and stable government.Globalization would bring any African country more closer to rest 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 somewhat a vast 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 piece of cake the limelight, and relief intervention can be provided by the global community. deal more at Buzzle http//www. buzzle. com/articles/benefits-of-globalization. html