Review of Two Articles on the Impact of Globalization in Developing Countries

Rama (2002) argues in this paragraph what multinational companies need to do in order to help and support labour policy’s in developing countries. Globalization at the beginning Globalization can be defined as “the ... ... middle of paper ... ...overnmental organizations (NGO), and the improved focus of MNCs on labour quality, labour conditions can improve. Though, some cross-national studies are believed to be unfavorable regarding to social welfare and accompanying rights as a result of MNCs. (Rodrik 1997, as mentioned in Mosley & Uno, 2007). The international community should seek for a way they can let understand governments of developing countries the relationship between yields and labour policies.

The following essay aims at highlighting and analyzing the main political arguments for trade intervention and the rationale behind this. Firstly, what should be noted here is that international trade has been providing different benefits for firms as they may expand in different new markets and raise productivity by adopting different approaches. Given that nowadays marketplace is more dynamic and characterized by an interdependent economy, the volume of international trade has grown substantially in recent years, reducing the barriers to international trade. However, after experiencing the economic crisis that took its toll in 2008 many countries adopted a different approach in terms of trade barriers by introducing higher tariffs in order to protect domestic firms from foreign competition (Hill). Secondly, in order to better understand the implications of the political arguments for trade it is essential to highlight the main instruments of trade policy (See appendix 1).

Such aspects include price movements of commodities. Movements in international commodity prices can, to some extent, cause havoc with balance of trade of developing countries. They have been the subject of articles and books for a long time; Spencer (1977, pp. —Pp 1–-20) outlined some of the impact of commodity prices on the balance of trade and of payments on developing countries. Even though such movements are part and parcel of international exchange and trade, globalization has given speculators added elements, techniques, and tools in their arsenal, so that they can move their funds from agricultural produce to minerals, to foreign exchange speculation with increased rapidity.

This book has made me question the long term sustainability of the already evolving economic globalization process. Rodrik explains that the process of globalization must be managed so that the entire world can benefit. The first point that Rodrik makes is that markets are limited by the scope of governance or regulation. He argues that markets and governments are most effective when they are operating in accordance with one another. This theory seems to stem from a theory earlier developed by the famous economist Adam Smith, which was that “the division of labor is limited by the extent of the market.” Rodrik expands on this theory by saying that not only is labor limited by the market, but that markets are limited by government.

My paper has two parts: First, it aims to take a close look at how globalization has changed the way the economy worked, specifically how it opened doors for multinational corporations to rise in power. Second, to answer the question, is it possible for it to exist today? And even so, should it? SOVEREIGNTY Before we delve deeper into this topic, it is imperative to properly provide a definition of sovereignty and lay down some foundation on this topic. There are four different definitions of sovereignty – international legal sovereignty, Westphalia sovereignty, domestic sovereignty and interdependence sovereignty.

In R. O'Brien, & M. Wlilliams, Global Political Economy (pp. 17-24). Palgrave Macmillan. O'Brien, R., & Wlilliams, M. (2010). Global Political Economy.

MIT PRess, 2001. 261-338. Sachs, Jeffrey, and Andrew Warner, “Economic Reform and the Process of Global Integration,” Brookings Papers on Economic Activity, 1995:1, 1-118. Wacziarg, R., & Welch, K. H. (2008). Trade liberalization and growth: New evidence.

(2008). Milton Friedman on Income Inequality. Journal of Markets and Morality, 11(2), 239-253. Ferrero, I., Hoffman, M., & McNulty, R. (2014). Must Milton Friedman Embrace Stakeholder Theory?

Globalization has been driven essentially by several minor factors varying from cultural, economic, political and ecological concerns, however, it’s being supported by the two macro factors underlining the trend towards superior globalizations. The two major drivers of globalization are; declining trade and investment barriers and the role of technological change (Hill, Cronk & Wickramsekera 2014). With the incorporation of innovative economic theories, I will discuss the key drivers of globalization since the 1970s. Furthermore, I will demonstrate how these key drivers have changed the nature of international business and determine the outcome. Declining trade and investment barriers refer to diminishing high tariffs on imports of industrial

Quirk, J. (2008). Examining Threats to the Economic Aspects of Globalization. International Advances in Economic Research, 14(1), 110-111. doi:10.1007/s11294-007-9125-8 Skipper, W. (2007). A New "New Economy"?