Advantages and Disadvantages of Globalization on Development in Developing States
Advantages and Disadvantages of Globalization on Development in Developing States Globalization brings more economic advantages to developing countries than disadvantages, even though this statement is arguable for many. But the simple effect of enabling developed countries and developing countries to compete in the same “Global arena” is already a gain, not only for DCs but for LDCs as well. The increased interaction among actors promoted by Globalization facilitates free trade which in turn provide LDCs with higher incomes and better socio-economic standards of living. The degree of development achieved and the areas in which benefits are present vary from country to country, but exist in all of them without mistake. On the other hand, it is evident that there are disadvantages that come with Globalization, disadvantages that grieve on countries that are not able to attract foreign investment. Some of the arguments on the negative effect of Globalization include exploitation of minorities by the MNCs, centralized wealth to a few countries, adverse reaction of depression in one country to another, widening of income gap, among others. We also need to consider environmental, health and other social issues which are greatly detrimental for less-developed countries due to lack or poor domestic and international policy planning in these specific areas. Many of these disadvantages can gradually be corrected or lessen by the implementation of market reforms and the evolution of domestic and international institutions. Increased interaction among developed and developing countries fosters an environment that supports economic growth. Free trade enables opens opportunities for more and new business opportunities. An International economic system supports countries to sell the goods and services they can produce better, enabling economies to raise to the internationalized level – Comparative Advantage. The competitive nature of the system also promotes technological
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