Preview

Globalisation as It Affects Developing Countries

Better Essays
Open Document
Open Document
1115 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Globalisation as It Affects Developing Countries
UB NUMBER: 10006436

MODULE: MANAGEMENT IN CONTEXT

ATTENDANCE MODE: FULL TIME

TUTORIAL GROUP: A4

MODULE LEADER: PROFESSOR NANCY HARDING

PROGRAMME: INTERNATIONAL BUSINESS MANAGEMENT

DATE OF SUBMISSION: 18th NOV 2010

I certify that this assignment is the result of my own work and does not exceed the word count noted below.

983 Number of words (excluding references)

Globalisation has had adverse effects and implications and this paper examines as it affects developing countries. It’s a comparative review of two articles; “The evolution of development economics and globalisation” by Piasecki and Wolnicki (2004) and “Could developing countries take the benefit of globalisation?” by Hartungi (2006). Effort was made to also identify points of congruence between the two articles as well as different views on globalisation trends experienced in developing countries. The general consensus is that globalisation theories reflecting economic growth and development are not a true representation of economic realities in developing countries. It is also clear that the articles do not identify the positive effects of globalisation. A holistic unbiased approach is thus encouraged in the understanding of globalisation as there is the tendency to get carried away with theoretical approaches while ignoring practical implications.

Hartungi (2006) describes the various concepts of globalisation and how it has affected developing countries. The article is focused on the debate on whether developing countries can benefit from globalisation and the involvement of the domestic nation-state in maximising these benefits. It identifies the dependency of economic development not only on domestic policies but on market forces and global influences of international trade. The possible positives of globalisation to developing countries are briefly highlighted in the



References: Hartungi, R. (2006) ”Could Developing Countries Take Benefit of Globalization?” International Journal of Economics.Vol.33, No. 11, pp.728-743 Kabilan, M. (2007) “Writing Critical Literature Review”, Scribd, 9 January, available at: www.scribd.com/doc/267683/Writing-Critical-Literature-Review Piasecki, R. and Wolnicki, M. (2004) “The evolution of development economics and globalization” International Journal of Social Economics. Vol.31, No. 3, pp. 300-314

You May Also Find These Documents Helpful

  • Good Essays

    Globalisation is expressed in transcontinental flows and networks of activity, interaction and power between countries, irrespective of geographic distance. It establishes and maintains economic, political and socio-cultural relations. This interaction helps economies through growth in international trade, investment and capital flows. Some factors that have acted as the driving force of globalisation include technological innovation as it had made transport and communication around the world easier, capitalism and trade have also played an important role in encouraging globalisation. Trade between countries in the developed world and the developing world has specifically been the biggest driving force of globalisation. A Newly industrialised country is a country whose level of economic development is somewhere between the development of the developing and developed countries. This is because these countries have moved away from an agricultural based economy into a more industrialised, urban economy. There are several factors that make Newly Industrialised countries the driving force of globalisation.…

    • 1543 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Bsb119 Study Guide

    • 598 Words
    • 3 Pages

    1 BSB119 – GLOBAL BUSINESS LECTURE 1: INTRODUCTION TO GLOBAL BUSINESS Lecture Outline 1. Globalisation – nature and factors 2. Driving forces of Globalisation 3. Globalisation and limitations 4. Globalization: Prosperity or Impoverishment?…

    • 598 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Bus606 Global Impact Paper

    • 1002 Words
    • 5 Pages

    Globalization has focused energies, regulations, and strategies toward developing poor undeveloped nations and third world countries thrusting them into various development stages. It has enabled some developing countries to became larger and richer quicker, while giving other poor countries the opportunity to improve their economic structure. Structures that have changed in response to the forces of comparative advantage: in other words, they have moved up the value-added chain (Spence,…

    • 1002 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Mr Daniel Costa

    • 2668 Words
    • 11 Pages

    Lee, E., Vivarelli, M. (2006). The Social Impact of Globalization in the Developing Countries. Available: http://ftp.iza.org/dp1925.pdf. Last accessed 13/12/2011.…

    • 2668 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    The topic of globalization has become a hotly contested debate over the past two decades. Indeed, the increased integration of international economies have led to costs to some and benefits to others. These costs and benefits are a result of three effects of globalization, that is, expanded markets, cheaper resources or a combination of the two. Firstly, from the business perspective, one effect of globalization is that of expanded markets. This means that a business that had previously only sold its goods domestically can start selling products to other countries and this can increase their profit potential. Secondly, another consequence of bilateral trade agreements is the access to cheaper resources. Until the start of the 1990's, the People's Republic of China was largely closed off to the rest of the world. Many companies in the United States produced their goods either domestically or in areas with slightly less expensive labor. When China opened its market to the rest of the world, however, American companies were able to take advantage of the far cheaper labor. This is known as outsourcing. Cheaper labor contributes to cheaper costs, which in turn contributes to larger profits. Sometimes, but not always, this may also mean cheaper products and services. Finally, International development, as a consequence of globalization, arises out of a combination of both expanded markets as well as cheaper resources. A prime example of this is India. Before the late 90s, the information technology sector in India was largely in its infancy stage. However, coupled with an educated yet inexpensive workforce, foreign companies were able to start subsidiaries of high tech activities in cities like Bangalore. This technological know-how spread to local firms, who in turn grew as a result of expanded markets both in India as well as the rest of the world.…

    • 591 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Global Trends

    • 1306 Words
    • 6 Pages

    Globalization has triumphed since the last century after the end of the cold war in the late 1980s. It has made extensive efforts to unify the world’s economic order, created tremendous benefits for the countries that participate and is the driving force of economic life on this planet. It has not only spurred the growth of the high-income developed countries but as also brought tremendous opportunities to the developing countries. Globalization is viewed as an inexorable economic integration between countries in terms of technological innovations, cross border trade and increasing foreign direct investment (FDI) due to which national economies are merging into one huge interdependent global economic system.…

    • 1306 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Nowadays, developing countries all around the world face a great amount of disillusionment. Development as proposed by the IMF and the WTO has not had the positive effect it was supposed to have. In fact, the policies preached by these international actors have in times exacerbated economic problems leading to recessions. Countries, that have achieved higher economic growth throughout the years, have achieved this, not by following the dictates of the Washington Consensus exactly, but rather by applying them in an unorthodox fashion. Nevertheless in recent years globalization has become a replacement for a sound development strategy. In his article Trading in Illusions, Dani Rodrik (2001) argues against the line of thinking promoted by these international organizations and proposes that development programs should be locally designed taking into account pressing social issues. This essay will use Rodrik’s article and numerous examples as reference to explain that the policies of liberalization do not magically solve a country’s economic problems. I will provide further examples to support Rodrik’s claim that globalization is not a development strategy. After an evaluation of these arguments, I will conclude in accordance with Rodrik 's statement that in order “to be effective, development strategies need to be tailored to prevailing domestic institutional strengths” (Rodrik, 2001: 62).…

    • 1138 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Globalisation of Nike

    • 1454 Words
    • 5 Pages

    Advantages of Globalisation include:1.Increased free trade between nations2.Increased liquidity of capital allowing investors in developed nations to invest in developing nations3.Corporations have greater flexibility to operate across borders4.Global mass media ties the world together5.Increased flow of communications allows vital information to be shared between individuals and corporations around the world6.Greater ease and speed of transportation for goods and people7.Reduction of cultural barriers increases the global village effect8.Spread of democratic ideals to developed nations9.Greater interdependence of nation-states10.Reduction of likelihood of war between developed nations11.Increases in environmental protection in developed nationsDisadvantages of Globalisation…

    • 1454 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Globalization in Mexico

    • 1275 Words
    • 6 Pages

    Globalization gives us many opportunities offered to all countries able to access the markets in which to place their products, capital to be invested and technological innovations that can boost economic growth. But globalization is a risk of considerable dimensions: left out of the process, namely, the lack of access to the benefits that the global economy offers.…

    • 1275 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Why Shanty Towns Exist

    • 1383 Words
    • 4 Pages

    Yusuf, Shahid, Simon Evenett, and Weiping Wu. 2001. Facets of Globalization: International and Local Dimensions of Development. Washington, D.C.: World Bank Publications.…

    • 1383 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    The existing wide disparities between the developed and the underdeveloped economies makes globalisation a tool for stultifying the industrialisation process, and by extension, retarding the growth and development of underdeveloped economies. Trade liberalisation, the cardinal instrument of globalisation ensures that industrialised countries have access to world markets, which enhances further industrialisation of industrialised countries while incapacitating the industrialisation process of the underdeveloped economies. The paper is an attempt to examine issues surrounding the paradox of globalisation and provide a framework for underdeveloped countries to circumvent the overbearing effect of globalisation in their efforts towards industrialisation, economic growth and development. INTRODUCTION Globalisation constitutes a critical motivation for development in the contemporary world of today as a result of the challenges it poses to nation states. The equation of global influence is fundamentally determined by a vibrant economy that is characterised by inherent ability to sustain a steady state growth path and development. Theories of economic growth (both neoclassical and endogenous models) converge on the fact that technology is the driving force of economic growth. The crucial factor in global economic equation is therefore technological capabilities, which makes proper utilisation of resources feasible. In turn, the utilisation of resources is a requisite process for attaining technology and generating economic growth.…

    • 7888 Words
    • 32 Pages
    Powerful Essays
  • Better Essays

    Globalisation is an inevitable phenomenon in human history that is been bringing the world closer through the exchange of goods and products, information, knowledge and culture. Globalisation has more or less influence on every country in the world. There are a lot of disputes about whether there is a more positive or more negative influence of globalization on the developing countries. According to The Economist (2001, 10), people who live in developing countries “are even more likely than their rich-country counterparts to benefit, because they have less to lose and more to gain”. However, this question is complex and in this essay it will be argued in relation to the impact of globalisation on labour markets in developing countries. This essay will discuss that globalisation has largely positive influence on the labour markets in developing countries. Some advantages and disadvantages relative to three general points of essay, namely money flow changes, migration processes, and usage of child labour, will be presented.…

    • 1452 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Seguino (2010) defined globalization as “a set of macro-level policies and regulations that affect cross-border transactions, resulting in increased interdependence among countries and their citizens.” In an attempt to explain it further, she also described the three key facets of globalization namely: trade, investment and financial liberalization. These have also been regarded by the World Commission on the Social Dimension of Globalization or WCSDG (as how it shall be labeled in this essay) as significant aspects in determining whether globalization has, indeed, been beneficial to all countries. Though Seguino specifically recommended a lot of measures such as the PPP, HDI, and the like to gage the effects, both articles revolve on the perspective that globalization should be able to enhance the living standards of people, whether be it of the formal or informal sector, or even the minorities, and it should foster developmental sustainability.…

    • 1464 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Globalists regard globalisation as a key process for economic development and a tool for the elimination of socioeconomic inequality, with the belief that income is now distributed more evenly and the idea that one or few nations can dominate other nations is considered obsolete. The emergence of a global ruling class it is argued promotes just development. This paradigm suggests that globalisation is a positive contributor to social, economic and cultural factors, by generating wealth and employment on a national, regional and local scale, as well as encouraging economic and financial development and global interactions between countries.…

    • 97 Words
    • 1 Page
    Satisfactory Essays