...Does globalization support economic growth in developing countries? Even though globalization in developing countries does not assist in maintaining proportional wealth distribution, it can increase growth rate, productivity, and technological changes which helps increase economic growth (Bigman 2002). Economic Growth is “an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation.”(www.investopedia.com). As mentioned by (Bigman2002), globalization has had a major impact on the economic growth of most developing countries except a few countries in South Asia and Latin America. In East Asia, countries such as China and Japan underwent rates of economic growth during the last 30 years. This resulted in the well-being of a large portion of their population. As confirmed by the IMF, international trade has improved the world economy heavily. “Integration into the world economy has proven a powerful means for countries to promote economic growth, development, and poverty reduction. Over the past 20 years, the growth of world trade has averaged 6 per cent per year, twice as fast as world output.” (IMF Staff 2001). When an economy is open to foreign investment, sustained economic growth can be achieved. This can be proven because no country over the past years has achieved economic success without...
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...Effects of globalization in developing countries Developing countries as a whole are doing well in trade. Their manufactured exports are growing faster than those of developed countries, which is to be expected since they started from a lower base. However, the patterns of their growth are interesting and unexpected. They grow more slowly than developed countries in primary products and resource-based manufactures, presumably because of the faster application of new technology or trade barriers in the industrial world. Within other manufactured products, their relative lead over industrial countries rises with technology levels. This is counterintuitive: theory would lead us to expect that developing countries would grow fastest relative to developed countries in low technology, less in medium technology, and least in high technology, products. The data show the reverse. Moreover, it is not just rates of growth that show this trend (due, say, to the small initial base of high-tech products); the values involved in technology intensive exports are also very large. the relationship between assemblers and suppliers has changed. There is a growing preference for using the same suppliers in different locations (follow sourcing), which limits the possibilities for component supplying by local producers in developing countries. However, opportunities in second-tier sourcing, where a global reach is not required, do exist. The paper shows that developing countries can increase the possibility...
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...The world has experienced rapid globalization in the last few decades. Both developed and developing countries are increasingly participating in globalization and becoming part of the global village. The world economy has increased significantly and countries all over the world, whether developed or developing, have seen the size of their national economies grow. Even though globalization has been beneficial for the world economy, it has led to the emergence of certain problems in different parts of the world and in both developed and developing countries. Globalization has had a tremendous positive impact on poverty reduction. The increasing integration of developing countries to the world economy has led to a reduction in extreme poverty. According to the World Bank, 52 per cent of people living in developing countries lived in extreme poverty in 1981. By 2011, this has decreased to only 17 percent. Large developing countries like India and China experienced rapid decreases in extreme poverty. While China experienced rapid economic growth due to globalization, it lifted 680 million people out of extreme poverty between 1981 and 2001. The significant reduction in poverty in the developing world shows the beneficial effect of globalization on poverty reduction. Globalization opened up developing countries to the world economy. Developing countries experienced substantial inflow of foreign direct investment, technological inflow and the opportunity to serve a substantial customer...
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...Challenges for Developing Countries in International Trade Introduction: Globalization is becoming an irresistibly stream in this age. People believe that globalization will bring tremendous for turn and benefit for them. However, as the deepening of globalization, it has revealed a lot of problem, especially for developing countries. This essay is to discuss challenges faced by developing countries in the context of international trade in the process of globalization. The author wills look into their challenges in international trade of manufacture goods, agriculture products and services. Globalization Globalization is probably the most frequent emerging word in the news today. Concerning about what is globalization, it reminds me of a joke, which is about Princess Diana’s death. In this joke, Princess Diana’s death is claimed to be a symbol of globalization, for the reason that this car accident is highly globalized: it is an English princess with an Egyptian boyfriend crashes in a French tunnel, driving a German car with a Dutch engine, driven by a Belgian who was drunk on Scottish whisky, followed closely by Italian Paparazzi, on Japanese motorcycles; treated by an American doctor, using Brazilian medicines. This is sent to you by an American, using Bill Gates's technology, and you're probably reading this on your computer, that uses Taiwanese chips, and a Korean monitor, assembled by Bangladeshi workers in a Singapore plant, transported by Indian lorry-drivers...
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...It is indeed our pleasure to submit the report titled ‘Impact of Globalization on Developing Countries Income Distribution’to you for your kind appraisal.During information collection, we got support by many other sources and we also got huge amount of support from you when we prepared the report. The experiences we have gathered will be very helpful in our professional life. We believe, this report will be quite interesting and fulfill your expectation. We have tried to give our best efforts to prepare a comprehensive report. We will be grateful if you accept our report and your kind consideration will be highly appreciated. Sincerely Yours, Group Members of "Group No: 03" Acknowledgement This report would not have been possible without the dedication and contribution of all the researchers of our group members. In IUB we studied the subject “International Business” as a part of our course. We went through the textbook, according to the syllabus. Hence, we are grateful to our course instructor Mr.Mehadi Mansur for describing the topics clearly and repeatedly in the class. A clear concept is the first step to be involved in making any kind of report and practical analysis. While preparing this report it was very helpful for us to work with the topic. Moreover, without Sir,Mehadi Mansur assistance and guideline completing the report was not possible whatsoever. Introduction Globalization means the worldwide...
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...Globalization and Religion Abstract In this paper I will explain how globalization is very beneficial from an economic and business point of view. Globalization can be argued as a tool for economic growth, advancement and prosperity through co-operation between the developed and developing countries. The pro-globalization critics argue that the benefits that globalization brings to developing nations surpasses or outcasts the negative impacts caused by globalization and may even go a step further to state that it is the only source of hope for developing nations to prosper and stand out. However, the real question to be asked is as to what extent are the positives argued upon without taking into account the negative aspects of globalization towards developing countries. There are many developing countries benefiting or even prospering from globalization Therefore, my paper will dispute that the growth and advancement provided by globalization to developing countries is beneficial in short-term, but in the long-run, it will only bring upon negative impacts and challenges due to the obstacles involved such as exploitation of labor and resources, higher increase in poverty, and effects of multi-national corporations on local businesses and the economy, and to an extent the effects on the developing country itself. One of many negative effects that comes with globalization on developing countries is exploitation of labor. With a competitive global market, inflation, and cheaper...
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...poorest countries has been negative. Discuss. Currently, globalization is rapidly developing and making a contribution to social progress. It is mainly manifested in politics, economics and culture. Many western industrialized nations get tremendous benefits from globalization. This is mainly displayed in the aspect of market expansion. Because of globalization, more markets for capital investment and outlets for goods are available. However, some poor countries suffer because of globalization. As a result, the economic gap between developed nations and developing nations is expanding remarkably. Nevertheless, several developing countries have seized the opportunity and created a miracle in their economy. Therefore, every country needs to recognise that it can help them and also be aware of the challenges. This essay discusses that while developed countries and some developing countries have benefited economically from globalization, most developing countries have experienced negative impacts. Hence, it is important to firstly identify what globalization is and state what benefits developed countries and some developing countries have had and the negative impacts some developing nations have experienced. After that, the essay discusses reasons for these two different results. It is argued that globalization has brought economic, financial, technological and social benefits to western industrialized nations and some developing countries. However, the majority of developing countries...
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...Abstract Globalization is the buzzword of today. Globalization means bringing the world together, making the world interactive and effective. The economies of the world are being increasingly integrated. It is very debatable issue since it affects every single human being in this earth and plays a major role in every second and in every issue of the entire universe. Mobile phones and Internet have brought people closer. The world is becoming a smaller place. It brings the local market and the global market in a bond which creates new ideas and thoughts to both the market. Goods, which were once confined to western countries, are available across the globe. Work can be outsourced to any part of the world that has an Internet connection. Because of improvements in traffic infrastructure one is able to reach one’s destination in a relatively short span of time. This paper clearly speaks about the impact of globalization and the challenges faced by it in the world. It speaks about the impact in developed and developing countries of the world. Table of Contents CHAPTER 1 5 Definition of Globalization 5 Globalization trend in the past golden years 5 CHAPTER 2 8 Positive impact of Globalization 8 Challenges faced due to Globalization 9 Comparison between Benefits and Challenges 11 CHAPTER 3 13 Impact on developed countries 13 Impact on developing countries 14 Conclusion 15 Case Study 15 References 16 CHAPTER 1 Definition of Globalization As a term globalization...
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...What Is Globalization? Globalization can be explained as a process of integration and interaction among the companies, people, and governments of different nations. It is a process explained by international trade and investment and updates by information technology. There is an amazing irony in globalization and it is that, as the world gets smaller, opportunities for growth and development become wider and better. Nowhere is this more clearly manifest than in the sphere of international trade and business relations where foreign market economies, domestic politics and diverse legal systems are linked to each other to create more advantages for the contracting states. Origin of Globalization The origin of the Globalization is not new one. It has been gone thousands of years, first people, and, then later on the corporations and industries have been selling to and buying from each other in different lands and nation’s at large distances. This origin of globalization can be elaborated by taking an example of Silk Road. The Silk Road is an entity that is connecting the Europe and China during the middle ages. The same, for centuries, industries and people have been investing in enterprises and venture in other countries. If truth be told, there are number of characteristics of the contemporary wave of globalization are parallel to those existing before the occurrence of the First World War in 1914. Brecher et al. try to conceptualize the roots of...
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...GLOBALIZATION Globalization is a series of social, economic, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress. Globalization is not an overnight solution to all of the world's problems. In fact, technology is always evolving so globalization will always be evolving as well. Skeptics of globalization argue that it is causing the world to conform to American standards, that there is a loss of culture associated with globalization, and many people in the countries being globalized do not want it to happen. No one should ever argue that globalization is perfect, because it is not. However, the concerns of skeptics can be easily alleviated. The earth is now divided into countries and continents after the big wars in the history of man. Nevertheless, there is a massive rising issue of globalization also known as free trade. Global economy is expansion of economies to the rest of the world which is demolishing industries, businesses and creating financial crisis in developing countries, on the other hand generating economical wealth in developed countries. Global economy needs national regulation and corporation...
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...Introduction Globalization, widely recognised as a positive influence, is actually harming the socioeconomic development of the majority of African and developing countries, it has contributed to their decline in all sectors of the economy. Before further elaboration, it is fundamental to define the term ‘’globalization’’. Globalization is defined by the United Nations Poverty and Development Division, as “an increasing interaction across national boundaries that affects many aspects of life: economic, social, cultural and political” (Chanboracheat, 2012, p.1). However, “While many people warmly welcome these integrations, there are some who raise doubts over its benefits for developing countries” (Chamboracheat, 2012, p.1). The benefits of globalization are fairly widely recognized: a) decrease in technological differences, b)knowledge and information become accessible to all, c) the rights of nature and animals are more protected than before and d) nations of the world become more interdependent. Sports, entertainment of all kinds reinforce cohesion and reconciliation between different nationalities. Countries suffering from natural or human disasters quickly receive support from other countries etc. This support alleviate the suffering of victims, and man becomes a citizen of the world. However, if one does a cost-risk and profit-effect analysis, what can be said to the overall effect of globalization? Is it positive? Is it negative? Globalization, as it exist today...
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...Globalization impact on healthcare Faculty Advisor; Prof. Peter Carrillo Student; Mohamed Osman National University 03/31/2013 Table of Contents Abstract 3 Problem Statement 4 Globalization and Poverty 5 Globalization and Climate Change 7 Globalization and Immigration / Emigration 8 Globalization and Communicable / Non-Communicable Diseases 9 Conclusion 12 References 13 Globalization impact on healthcare Globalization is the process of promotion of economic integration, communication exchange, cultural diffusion and travel, which facilitate the exchange and connection between nations, commerce and individuals. The effect of globalization on healthcare and individuals is complex. The globalization of healthcare has provided opportunities for many organizations to rapidly develop their products and to expand their network of customers also global transportation and the communications revolution enabled rapid response to epidemics and catastrophes. On the flip side, the rapid mobility of people across borders, the spread of infectious diseases is a great threat to everyone, particularly in poor developing countries. “Today, no microbe in the world is more than 24 hours away from the gateways of every industrialized country, and what incubates today in the tropical rain forest can emerge tomorrow in a temperate suburb.” --Nils Daulaire (Kelley, 2005) The link between globalization and global warming and environmental...
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...Globalization has benefited developed countries more than developing countries. To what extend do you agree with this statement? Globalization is widely discussed subject. Therefore, it is not that easy to explain such a complicated term in simple words. The advancement in technology such as mobile phones, airplanes, telephones and the internet have made the growth of transport and communication networks possible and more convenient. This means that people and countries can exchange information and goods more quickly and in a less complicated way. This is called globalization. Since, there is an active trade among countries, the products that are manufactured are affordable. The products can be purchased by more people since they are priced cheap. However, the trade of economic goods and products are not only the matter that takes place, but also services, knowledge, cultural goods and even languages. Simply, globalization can be described as the borders being removed so that countries become economically, socially and politically interdependent on one another. There are both benefits and consequences to globalisation for developed and developing nations which impact aspects of society such as employment, level of foreign investment, brain drain/gain and aid (UNESCO, 2014). Globalization has helped countries to developed greatly in all the economy and society. Researchers from different parts of the world have gone through this topic and there are some of them who believe...
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...Globalization and Child Labour Globalization is a topic that is very debatable; there are many advocates as well as opposition groups and globalization always carries with it the dilemma of whether it is good or bad for the all the countries taking part in this integration; regardless of this dilemma, globalization is happening right now and it is unstoppable, it has its benefits as well as its problems and one of the problems, although there is no empirical evidence, is that globalization raises child labour. Economic globalization unifies the economies of the world by reducing international trade barriers such as export fees, import quotas, tariffs through free trade agreements like NAFTA (North American Free Trade Agreement), as well as foreign investment, among others. However, this integration between developed and developing countries has increased the demand for labour in third world countries in sectors such as agriculture, food processing, textiles and this demand has increased the wages of their workers; which has prompted the need for cheap labour in other words child labour. In this paper I will examine the arguments on how globalization raises child labour as well as how globalization can actually be used to reduce child labour. Globalization can affect developing countries through the labour market by increasing trades, export sales, and foreign investment, all these factors have an impact on employment and salaries [2]; globalization increases the uneducated...
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...ESSAY – Individual Assignment “Globalization brings more benefit than harm and should therefore be encouraged”. Discuss the statement. Submitted to: Prof. Dr. Mohd Nazari Ismail Prepared by: TAN WAN TENG, CGA150015 Date: 5th April 2016 TAN WAN TENG (CGA150015) CSGB 6314 International Business Management Globalization is not a new thing. Long time ago, people have been selling to and buying from each other places at far distances, for example, the Silk Road across Central Asia which was connected China and Europe during the Middle Ages. The globalization has been developing since 1980 and today it is easier for people and firms to communicate with other countries in the world. Globalization is the development of worldwide economy in which resources and products move fairly across national borders. It is also a process of integration among people, companies, and governments of different countries, which is usually driven by international trade, investment and supported by information technology. Both developing and developed countries are taking part actively in globalization process but both countries reacted differently in globalization. This process has the positive and negative effects on employment, culture, education and knowledge, market competition, economic, wealth and human physical well-being around the world. Employment and Poverty The outsourcing of services and manufacturing to developing countries have provided more job opportunities...
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