Impact of Globalization on Development

Globalization is the buzzword of today. The phenomenon of globalization rapidly bm across the world forcefully and powerfully. Economies of the world ar being increasingly integrated as new applied science and communication has brought people together. We a great deal hear the phrase that the world has live a global village which itself signifies how a good deal has changed in the world in the past few decades. Financial and industrial globalization is increasing substantially and is creating new opportunities for both industrialized and exploitation countries.The largest refer has been on exploitation countries, who now be able to root for alien investors and foreign crownwork. This has led to both positive and negative ca role for those countries. Economically new parts of the world do opened to capitalistic activities. The spread of capitalist activities has been part of globalization process which ties up well with the liberals believe in the possibility of prog ress (Baylis, J. , et al. (2008, p. 110). sinless good deal is the decrement or removal of commercial barriers between countries.This get outs a liberater flow of grind and goods between member countries in a shargon pact. As foreswear guile agreements become more common around the globe, the positive impact on develop countries has been touted as one of their greatest successes. There are several advantages to developing countries that participate in shift trade. desolate trade is an economic practice whereby countries kindle import and export goods without fear of g all overnance intervention. Government intervention includes tariffs and import or export bans or limitations. take over trade offers several benefits to countries, especially those in the developing stage. According to a widely employ definition, a developing country is a realm with low levels of economic resources and/or low standard of brisk. development countries hobo often advance their economy by strategic free trade agreements. Increased Resources evolution countries nates benefit from free trade by increasing their amount of or overture to economic resources. Nations usually stop limited economic resources. Economic resources include land, delve and capital.Land represents the graphic resources found within a nations borders. Small developing nations often hold the lowest amounts of natural resources in the economic marketplace. Free trade agreements undertake small nations can obtain the economic resources needed to produce consumer goods or services. By using a countrys comparative advantage, or what they can produce at a lower opportunity salute than other countries, they can get all the benefits of trade. If every country has a comparative advantage that means that everyone can gain from trade.There is curious evidence that globalization is helping countries expand and achieve higher(prenominal) incomes or a higher GDP Improved Quality of Life Free trade usually improves the quality of bearing for a developing nations citizens. They can import goods that are not readily available within their borders. importing goods may be cheaper for a developing country than attempting to produce consumer goods or services within their borders. Many developing nations do not contract the deed processes available for converting raw materials into valuable consumer goods.Developing countries with friendly neighbors may also be able to import goods more often. Importing from coterminous countries escorts a constant flow of goods that are readily available for consumption. In countries with a higher degree of globalization, policies tend to support more duty in the private and public sectors. These nations are more likely to asseverate courts that recognize property rights and enforce the rule of law. Their governments are more useful and less corrupt.Policies in these more globalized countries tend to be more stable, inhering for long-te rm planning by business. (Fisher, 2006) erupt Foreign Relations Better foreign relations is usually an fortuitous result of free trade. Developing nations are often subject to international threats. Developing strategic free trade relations with more powerful countries can help ensure a developing nation has additional protection from international threats. Developing countries can also use free trade agreements to improve their forces strength and their internal infrastructure, as well as to improve politically.This unintended benefit allows developing countries to learn how they should govern their economy and what types of government policies can best benefit their people. Production Efficiency Developing countries can use free trade to improve their production efficiency. Most nations are suitable of producing some type of goods or service. However, a lack of knowledge or proper resources can make production inefficient or ineffective. Free trade allows developing countries to fill in the gaps regarding their production processes.Individual citizens may also visit foreign countries to ontogeny education or make out in specific production or business methods. These individuals can and so bring back crucial information about improving the nations production processes (Yutzis, 2001) Increased Standard of Living Economic globalization gives governments of developing nations access to foreign lending. When these funds are used on infrastructure including roads, health care, education, and social services, the standard of living in the country increases.If the money is used solo selectively, however, not all citizens will participate in the benefits. entree to New Markets Globalization leads to freer trade between countries. This is one of its largest benefits to developing nations. homegrown industries see trade barriers fall and have access to a oftentimes wider international market. The growth this generates allows companies to develop new technol ogies and produce new products and services. high Employment Rates As developed countries are able to move their operations into developing countries, new job opportunities open up for local anesthetic workers.Increased levels of employment lead to a higher standard of living and more consumer purchasing. This ultimately sparks the countrys economy and may help to develop locally owned business. Research was conducted on national incomes around the world during the mid-nineties and results instituteed that the income of rich globalized countries increased by 2% each division. The results also show that poor, more globalized countries have a higher increase in income per year than poor, less globalized countries. Actually according to this research the poor, more globalized countries have had an increase in income of 5% ach year while the poor, less globalized countries had a devolve of 1% per year. Less Child Labor Child labor occurs in developing countries for many reasons but one of the main reasons is lack of technology. Children are used as a cheap substitute for manufacturing equipment. In developing countries, sending their children to work is the only way a family can survive. usually there is not an abundance of schools and checkup care like in the wealthier countries, and even if education and proper health care is available it is only available to the wealthier families who can afford it.Through globalization, households will make higher incomes which may eventually enable a family to send their children to school and domiciliate some type of health care. In another article by Jagdih Bhagwati he states, child labor will certainly diminish over time as growth occurs, partly due to globalization. (Bhagwati). Free trade allows companies to invest in equipment and pay higher salarys to adult workers through foreign investment. With higher family incomes, children are able to accompany school preferably than work. Access to New MarketsNot only does free trade allow foreign-owned companies to establish themselves in developing countries, it also allows native companies to sell to foreign markets. This expands their customer base and leads to new products and services and the viability of investing in innovation. This is oddly true for small businesses in developing countries. These companies no lifelong have to worry about absorbing the costs of tariffs and other barriers to market entry and can sell their products freely. Higher Levels of Investment Capital Most free trade agreements also reduce restrictions on foreign investment.With new capital entering a developing country, it begins an upward productivity cycle that stimulates the blameless economy. An inflow of foreign capital can also stimulate the banking system, hint to more investment and consumer lending. Increased Life Expectancy An increase in employment levels, incomes, and the general standard of living alleviates hunger and lack of medical care in deve loping countries. Preventative medical care including checkups and vaccinations are available to more of the population. It also increases the number of children who are educated and attend school regularly.The ultimate result is an increase in the average life span and a reduction in infant deaths. Widening contrariety in Incomes While an influx of foreign companies and foreign capital creates a reduction in overall 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 rise as the financial health of developing countries rise, but in the short term, some of the poor will become poorer. Not everyone will participate in an elevation of living standards. reduced 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 agricultural 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 agonistical trying to care for the new underclass.