Articles Summary: Impacts of globalization on developing economies
Globalisation seeks to place developing countries at a better position in terms of economic development. Obviously, in practicality this is very much happening, the major reason many countries are clearing trade boundaries such as tariffs and hefty transport cost. This paper presents an in-depth research analysis on the impact of globalisation. An empirical study was conducted involving policy makers from different region of the world. Using a questionnaire and Likert scale analysis the study confirms that indeed globalisation leads to competitiveness. Therefore, competitiveness creates a room for economic development. The ratings did not differ significantly with gender, region or level of income. In unison, the results showed that is imperative for a country to promote policies of globalisation.
Globalisation is a common phenomenon in the world of business both for developing and developed countries. Since the 70’s, the world economy has been widely and increasing connected and integrated. On one hand, the decreasing cost of transportation and dispersal of information and vital technologies have implied a hasty downgrading of the concept of distance. Whereas of the other side, the concept of foreign direct investment (FDI), capital flows, trade and technology transfers have steadily risen in a significant manner.
The current wave of globalisation in most parts of the worlds has been accompanied by the increasing concern about the impacts on various economic parameters such as income distribution and employment opportunities. Nonetheless, whatever the indicators are taken, globalisation debate is characterised by a rancorous dispute between the advocates and the critics of globalisation. However, while this is true with regard to income and employment effects within the developed nations, the positions swerve more sharply to the impact on the third world countries.
For instance, the optimists underline the correlation between the increasing trade and economic growth. The conclusion is that a trade is good for the growth and growths good for the poor all in terms of creation of jobs and alleviation of poverty. In contrasts, the pessimist give the idea that globalisation is dreadfully uneven in its impacts and gives rise to the negative counter-effects on the previously protected sectors. It marginalises some regions of the world and increases income inequality within the country.
Another example of this kind of the diversity of opinions is the question of poverty alleviation. Faction of globalisation is of the idea that since activities of the globalisation took place fifty years ago, there has been a tremendous reduction of poverty. While the critics squabble the idea saying, the results are entirely statistical artefacts. They illustrated that absolute poverty has increased in many developing countries, and relative poverty has increased in the majority of the countries especially the sun Saharan Africa.
In the recent days, economist have made globalisation theme of discussion and analysis. The policy makers and thinkers on development have more concern about the impact of globalisation on the developments of the economy. Typically, loud voices of the advocates of the globalisation demonstrate that it has infinite important for the welfare of mankind and is potential for development. However, opponents assert that globalisation is a veritable evil out to drive the developing countries back to the colonial days of abject poverty. In both sides, powerful points of view are placed in order to support their claims. As it will be explained later in this paper, in particular globalisation has intrinsic worth supersedes the demerits hence positive impact on the development of the economies. A proper awareness of the nature of globalisation, implications and impacts are necessary for the developing countries so that to alleviate rampant poverty and stagnant business activities.
Broadly, globalisation means entirely-free operations of economic activities across the country’s borders without any impediments by the governments of the countries involved. Absolutely, there are two types of economic operations; the flow of capital from one country to another and the flow of goods from one country to another. The combination of these two economic operations could exemplary lead to economic growth. This is amid inflows to the country. The flow of goods and services across the borders means export and imports. Similarly, flow of capital means establishment of the foreign direct investments such as acquisition of factories and capital deposits in share markets.
The following sections will try to go deeper into these topics and provide both theoretical and empirical treatise on the impacts of globalisation to advanced and developed countries. Therefore, to accomplish this, the paper will be organised as follows; section 1, introduction it covers purpose, objective and justification of the study. Section 2. Entails literature review and it covers both theoretical and empirical reviews. Finally, it reveals the research gap. Section 3 research methodology, it covers research strategy and design. Section 4 covers results and while section five covers findings, discussions and policy recommendations.
In the light of the discussion of the backgrounds, this research made an attempt to better understand the globalisation and its impact to the economies. The paper will consider the proponents and opponents point of view on globalisation. Later a statistical test will reveal the uncompromised results and independent of the researcher. The Rationale of the Study will be;
To investigate the impacts of globalisation to developed and developing countries
In order to achieve this, the study is aimed to attain the following research objectives Objectives of the Study
The study objectives will be:
To investigate the role of globalisation in creating business competitiveness
To analyze the participation of globalisation in economic growth
To examine the impact of globalisation in poverty reduction.
To identify the implications of globalisation in exploitation of resources
Study Hypotheses
Globalisation play major roles in creating healthy completion in businesses
Globalisation enhances economic growth of a country
Globalisation leads to alleviation of poverty.
Globalisation facilitates the exploitation of key resources in production
Research questions
Specifically, this paper aims to find out;
What globalization did to enhance business competition in developing and developed economies?
How does globalization enhance economic growth of the economy?
How globalization does contribute to the alleviation of poverty?
Do the answers given above differ with other researchers?
1.4 Justification of the Study
The study will examine the impact of globalization to various economies, both in developed and developing world. The study will help policy makers to emphasize the need of encouraging the business entrepreneurs invest in various countries which have the opportunity. Moreover, the developed economies will be advised to embrace globalization since it has positive impacts to the peoples’ welfare. This paper further will contribute knowledge to future policy makers and researchers indicating the importance of globalization to the economy, specifically through creation of employment and income distribution thereby uplifting the standards of living to various groups.
Articles Summary: Impacts of globalization on developing economies
Article 1: Lee, E. & Vivarelli, M. (2006). The Social Impact of Globalization in the Developing Countries. International Labor Review. 145(3): 167-186
From early 1980,s there has been progressive integration in the economy of the world through interconnectedness of different countries. Reduction in the cost of transport and increased diffusion of communication and technology has boosted globalization. However, there have been mixed feelings and concerns about the role of globalization in developing countries. There have been disputes that arise between the critics and the advocates of globalization. Optimists for globalization argue that globalization is important for income distribution and employment and thus significant for the poor in the society (Lee & Vivarelli 2006). However, the pessimists are of the opinion that globalization encourages instances of marginalization especially to the developing countries. To understand whether globalization improves living in developing countries; its impact on human rights, poverty alleviation and environment is considered.
The economy in the world has progressively integrated, making connection between countries much easier. Lee & Vivarelli (2006) identifies that globalization is characterized by increased interaction and trading activities between countries, which boosts their overall economic situation. Globalization is also affecting the social and political dimensions of country. In their article, Lee & Vivarelli (2006) aimed at identifying how globalization affects income redistribution, poverty alleviation, and employment. Their focus was based on empirical and theoretical supports which presented various arguments on the topic. There are different people who support that; globalization has positive influence to the society while others are of contrary opinion. In their articl…