The growth of multi-national companies. Increased integration of global trade cycle. Increased communication and improved transport, effectively reducing barriers between countries. Benefits of globalisation 1.
Do the poor really benefit from investments made by large corporations in their country, or do the rich only get richer? If there is benefit, is it simply in job creation or are there other factors that influence a developing nation's overall well being?
Although many factions weigh in on the subject, several basic ideas should be considered. Wages and Inequality As companies outsource work to poorer countries in pursuit of cheaper labor, many of the poor in these developing countries are able to find work at wages that are finally able to sustain their families.
However, as in any job market, it seems that those with a higher level of skills are the ones who receive the most work.
Those with less skill may not receive the benefit of higher paying jobs with a foreign company. As a result, inequity develops among the working class creating a divide within the local economies.
The less skilled still struggle to gain financial stability while others can rise out of poverty. Also, the opening of trade and development of companies in places like China, for example, have led to huge increases in manufacturing and sales.
In general, vast numbers of the Chinese people have been able to rise out of poverty as they have found better paying jobs and work for both domestic and foreign companies.
The country has become a big player in the global market and many of its people have similarly benefited. With greater personal income, individuals have had greater access to increased opportunities and further education.
Education As additional money flows into a country's economy, the government has more resources to fund important initiatives such as educational advancement. Similarly, individuals become financially stable and can afford things that were previously unattainable, such as schooling and vocational training.
However, a potential downside of increased educational opportunities is that some of those individuals who achieve a professional level may emigrate to other countries in search of higher salaries and improved lifestyles.
Health Status and Longevity Another benefit to developing countries is the improvement of health services and the extension of life expectancy in the general populace. Increases in income and resources allow for greater access to food, medical services and health care.
Yet, while things are improving for many developing countries, there are still areas of concern. Access to a greater variety of foods, especially those foods that are processed, have led to increased rates of obesity in many poor countries, which, in turn, can lead to health issues such as diabetes, cardiovascular disease and high cholesterol.
Unfortunately, many of these countries are unable to maintain enough highly trained professionals to meet the health need as professionals often head elsewhere, in search of a better paying position.
Spread of Infectious Diseases Another health concern is the increased risk for the spread of infectious diseases. When countries remained relatively closed off to trade and interaction with other others, they remained isolated from health risks as well. As countries opened up, both products and individuals began to travel, taking diseases with them.
Some diseases, that had been virtually eradicated in some parts of the world, have begun to crop up again. And while researchers work hard to adapt cures to battle the often-resistant strains of bacteria, poorer countries may not have all the necessary resources to help its citizens.
To combat the problem, developing countries will need to rely on the humanitarian efforts of others.Each nation/society has its own distinct culture, but under globalization the cultures of developing countries are eroded and they are required to accept the values and norms of developed countries.
Globalization helps developing countries to deal with rest of the world increase their economic growth, solving the poverty problems in their country.
In the past, developing countries were not able to tap on the world economy due to trade barriers. They cannot share the same economic growth that developed countries had. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa's countries, have been affected by globalization, and whether negatively or positively, the economies of.
Financial globalization could, in principle, help to raise the growth rate in developing countries through a number of channels. Some of these directly affect the determinants of economic growth (augmentation of domestic savings, reduction in the cost of capital, transfer of technology from advanced to developing countries, and development of domestic financial sectors).
Globalization has very limited advantages to developing countries which "dream" about economic growth. Influential stronger countries will benefit much more in terms of hegemony over a wide range of issues.
Diversity, prior to this trend for globalization, was a source of richness to this world. What is important is that countries be given the right and space to review the impact of globalization.
And they should be able to decide which aspects to make use of in future — and which aspects to discard. Responses to “Globalization and Developing Countries.