Wednesday, June 27, 2018

The Logic of Economic Globalization.


Globalization in essence was design to connect the world through a “combination of deregulated foreign trade, reductions in trade tariffs and the removal of export fees. Globalization seeks to utilize foreign markets effectively for trade as well as provide new development opportunities for production employment in foreign countries” (Hammond, 2017).

In all its outward appearance globalization seems by many to                                                                                                                                                                                                                                                                be the  elixir of the world economy for the twenty first century, but in reality not all nations are benefitting   equally  from globalization. For example, globalization tend to be more beneficial to developing nations such as the G-12 nations because the   world banks and other lending institutions such as the international monitory fund extend  ample resource to these nations which help to improve their economy, while on the other hand tend to have a negative impact on third world countries because these same lending institution such as the world banks and  IMF refused to lend funds to these third world nations for fearing that they do not repay their loan with interest on a timely basis.

For third world nations the benefit of globalization come in the form of the interconnectedness of countries due to modern technologies which allowed for citizens from these poorer countries to migrate to other developing nations in minutes to seek better employment and to reap the benefit of globalization.



Reference:

Hammond, K. (2017, September 26). Globalization's Effects on Third-World Countries. Retrieved June 26, 2018, from https://bizfluent.com/info-8543200-globalizations-effects-thirdworld-countries.html

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