Since Globalization produces uneven development, all the stakeholders do not get equally benefit from this process.
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Globalization creates a milieu of some types of insecurity due to the interaction with other state entities. Even though globalization has some negative impacts, still countries have to adjust their policies just to be accounted for the globalized world. It is like a new reality for developing countries. How do developing countries see globalization? In most of the developing countries, Globalization has a mixed experience.
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He also explained the roles of migration as it can drawbacks for a developing country. He emphasized using trade to promote development at the same time warned on the verities of capital flows and their effects. Mr Shahid Yusuf, who is affiliated with World Bank, included some aspects of how Globalization impinges the development.
#IMPACTS OF GLOBALIZATION ON ECONOMY FREE#
Juridical, equality, democracy and the free market are the four values also embraced by the globalization process according to the author. Capitalist activities have been a strong part of the globalization process since it believes in the possibilities of progress. The author levelled those countries as third-world countries that are still in the process of development. Growth takes place in the developing countries, but it is less robust since political integration does not affect.Īnother article by author Mr Patrick Mutua Kioko, named 'A Study on The Impact of Globalization in Developing Countries: Focus on Africa from a Liberal Perspective' gives an overview of the term 'Third World Countries'. The empirical study found that economic growth is greatly related to the economic flows and restrictions. To examine the impact of globalization on the growth of a country, the author used data for 123 countries of the time limit of 1970 to 2000. In another article titled 'Does globalization affect growth? Evidence from a new index of globalization' author Axel Dreher tries to formulate an index of globalization based on three major dimensions, those are economic integration, social integration, and political integration. In the changed economic structure, low-income countries go under the influence of MNC's of technologically advanced countries. The whole process paves a way for attaining a common culture in every aspect in exchange for sacrificing the world's existing economic and political structure. In this scenario, states become subject to the influence of multinational companies, and decreased state authorities' role, increased cross border interdependence. Globalization means the condition of unrestricted and which initiates easy movement of the factors of production, goods, services along with information and technologies. Because the features of Globalization have never been fully accustomed in the developing third world countries, but these are neither disdained. In the article, 'Globalization and Its Impact on the Third World Economy', writer Neelam Kumar Sharma, approached to determine the factors associated with this controversy and tries to analyse the economic impacts of globalization in the third world countries.Īccording to Neelam Kumar Sharma, Globalization is kind of necessary evil for developing countries. Even though, most of those who introduced the term 'Globalization' as mythical and controversial but supported its positive impacts as well. On the contrary, countries with less economic capability fail to attain their expected benefit from these interdependences.Įxisting literatures on globalization and its impact are mainly biased to the positive impacts of globalization. This process of being globalized reduces the role of government and increases interdependence among the states. Usually, more globalized countries do experience better economic wellbeing. In general, globalization promotes growth.
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Developed or developing countries, both are being influenced differently by globalization. The process of globalization is not equally beneficial for all the stakeholders. Globalization is the integration of national economies into the emergent international division of labour. The features of globalization have always been paving the way for better economic well-being through connectivity and free flow of information among the nations. Rather, people have been familiar with this term from the last phase of the last century. Globalization’s impact on developing countriesGlobalization is not a very recent phenomenon.