The other problem is, the modern men do not think themselves as a part of the nature. We have to develop the technology, but it should be in smaller scale that everyone could use that. According to Schumacher the real meanings of the economy developed and improve are needed to correct a few things. These are; the issues of peace and stability, recourses, the right use of earth and nuclear, and development of social and economic problems. According to Schumacher, we improve economy in developing countries and the problem is here, which the rich people are getting richer and the poor people are getting poorer, because we do not use a good system of economic progress and do not think about the negatives effect of that on environment.
1.) Comparative advantage speaks about win-win situation for countries in trade but there are many criticisms regarding comparative advantage theory such as consideration of trade costs, import substitution industrialization and also criticism from a economist Ha- Joon Chang speaking about Technology making Developed countries rich and Developing countries as it were form past. Our Question is based on criticism made by Ha- Joon Chang i.e. developed countries maintain relatively advanced technology and industry compared to developing countries which lead to countries with good technology to export and become richer and countries with low technology lead them to become more poor by importing. In a paper "Should Industrial Policy in Developing Countries Conform to Comparative Advantage or Defy it?
In an effort to compete fairly, production firms left in the developed countries try to reduce their production costs by reducing labor costs and deteriorating work environment conditions, hence resulting to a race to the bottom. Economics have tried to explain this phenomenon, proposing solutions to the controversy. To start with, economic growth differs from nation to nation and thus causing differences in development status. Accordingly, prices differ mostly due to production costs. United States as a nation portrays a clear image of this phenomenon, with the south being less developed as compared to the north.
But with the trade any developing country can be benifited in two ways one it will get money for growth and development and secondly it will abridge the gap between a... ... middle of paper ... ...e between them. trade is most essential parameter for a developing country. If we become familiar with the trade of super power then in future we can develop ourselves by our own and if we inclined towards aid. If today we hanker after developed countries for aid somehow in the coming future we would be dominated by them. In the end concerning the developing countries like Pakistan, China, Brazil these nations need both trade and aid in fair amount.
The International Monetary Fund and the World Bank were created as a result of the Bretton Woods Conference. Both provide assistance to countries suffering economically. While the IMF is a cooperative institution that aims to create an organized global system of payments and receipts, the World Bank is an institution that aims to help developing countries (Driscoll 1). Both play a part in the economies of struggling nations with the goal of reducing their burden and helping them to survive in the global economic system. Unfortunately, in many cases their practices within developing nations have been seen to create more harm than good.
Whether globalization is a force of good or evil has become a highly contested issue throughout the world. The proliferation of economic globalization has been advocated for with the claim that a greater socioeconomic integration and collaboration among countries will increase the living standards of both the rich and the poor. However, as Stiglitz indicates in the book Making Globalization Work, while it is true that globalization has enormous potential to make the world a better place, what is problematic is the amalgam between politics and economics that has shaped globalization resulting many losers and few winners. This paper will aim to show that on the one hand economic and corporate globalization are not the great evil portrayed by Wayne Ellwood in The No-Nonsense Guide to Gobalization, but neither can globalization and free trade be equated with increased living standards for all. Instead, the potential of globalization must be acknowledged, though one must take into account the negative impact it has had on the world and look for ways in which it can be improved as argued by Joseph Stiglitz.
Even though specialization will give comparative advantage, which is the ability of a firm or individual to produce goods or services at a lower opportunity cost than other firms or individuals, economic interdependence will scare some countries to specialize in something and dependently import something else from the other countries. In conclusion, interdependence will contribute imperfect specialization in international trade. These factors are clearly represented the factors that cause incomplete specialization. There are so many researches supporting these factors as this essay has discussed. Furthermore, the example can be found recently between countries.
Globalization may be championed as a gateway to financial growth for all nations, but only certain nations benefit from it. Global trading and integration has a negative effect on undeveloped nations and developed nations in many ways including; political systems, sovereignty, economy, way of life and much more. Earlier in the essay I asked ‘do the pros outweigh the cons when it comes to globalization’ and from my research I don’t see any real benefit. I don’t believe we should eliminate global business, but better the already lacking regulations and probably increase the standard of living equally for the world.
According to shared technology, the super power nations should be able to come together with getting the developing nations off the grounds. They should do it because it will help them become more developed, less dependent and decrease and poverty rates, not because it will be beneficial to them and to help the nations as a whole. Numerous of third world countries began industrializing when they noticed that the United States did during the Cold War. Some would debate that increasing financial resources and trading opportunities for the poorest countries is not a sufficient substitute. Consequently, even if it wasn’t that would still be a start in helping the under develop countries thrive more.
And even though the tariff barriers have been reduced significantly but the other barriers are still exist. The developing nations have argued that the protectionist trading policies of developed nations is being an obstacle against the industrialization of many developing nations. Accordingly, developing nations have sought a new international trading system with improved access to the market of developed nations. Some of the problems that the developing nations faced have been unstable export markets, Deterioration terms of trade, and limited access to the market of developed nation. Most of developing nations concentrate in one or few primary products in their exports.