Cause Of Globalization

1669 Words7 Pages
Globalisation is a process of raising integration and inter-dependence between countries around the world. It can be shown from greater trade in goods and services, massive transfer of financial capital and technology, better specialisation in production and more labour migration between the world’s economies. As highlighted the booming of the four largest emerging economies, which are named as BRIC (Brazil, Russia, India and China), is one of the most successful results of globalisation. Nonetheless, little attention is paid to the different problems behind this rapid global economic integration. The purpose of this essay is to examine the detrimental factors of globlisation to developing countries despite several benefits, and show that…show more content…
It seems that the world’s attention is attracted by the striking success of China’s economic growth, which mostly caused by worldwide integration, but the failure caused by it in other developing nations is neglected. Admittedly, the accelerated growth of China’s economy is based on exports but the government made it extremely slow to open up their market to imports and still restrict the hot money (the flow of funds from one country to another in order to earn a short-term profit by the change in interest rate or exchange rate) from foreign countries which has changed the form of globalisation in China. However, Stiglitz (2006) claims that Africa is the worst failure from it, where the percentage of the population living in extreme poverty has risen steadily from 1981 (41.6%) to 2001(46.9%). This research shows that Africa is the area where is exploited the most because of worldwide integration. In particular, during the colonialism period, the scarce resources there have been taken by the world with only a little return back. Additionally, Latin America has also been upset about it, as the openness of their markets to the world did not bring positive impact back, particularly to the poor. Hence, these evidence indicate that the normal form of globalisation may not be beneficial to developing countries and it may even generate more
Open Document