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Is globalization actually good for Dhaka, Bangladesh?

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Introduction

Is globalization actually good for Dhaka, Bangladesh? This question can be answered by using many diverse approaches. Some may believe that of course globalization has only positive impacts on developing countries around the world. Nevertheless, others may dispute that globalization brings only negative social, political, cultural, economic and environmental outcomes. In order for us to establish our own point of view on the issues of globalization in Dhaka, Bangladesh we are obliged to take a look at few things, for instance definition of globalization, and its both positive and negative impacts on the capital city, Dhaka. Dhaka, formerly known as Dacca, is the capital and major city of Bangladesh with the estimated population of 130 million people. It is located in the geographic center of the country, and is one of the world's top rice and jute growing regions. Its industries include textile and food processing, particularly rice milling, and a range of other consumer goods are also manufactured here. The Muslim influence is revealed in the more than 700 mosques and historic buildings found throughout the city. ...read more.

Middle

Foreign investment creates 10,000 new jobs every year in Bangladesh, which results in an increase of living standards. Conversely, foreign investments create high paying jobs, which require additional knowledge and skills, hence motivating people to achieve higher education, in order, to increasing their income. Advertisements for foreign produces also encourage people in Dhaka because when individuals watch commercials for high-priced foreign products, they want to buy them even if they don't have enough money. Dhaka, Bangladesh has largely benefited from the transfer of technology, which resulted from foreign investments. For example, a telephone company that had been monopolizing mobile telecommunication services since 1992 was diminished by the global movement. At that time only a few people were able to use it, for it was incredibly expensive and their services were below average. They also provided very few jobs in that sector. When some other foreign companies entered market of Bangladesh, the monopolist company lost its power. Now the competitive activity of many telephone companies has increased competition, people's income levels, and employment opportunities, which in turn has substantially reduced poverty. ...read more.

Conclusion

Beximco is a sweatshop, where human rights are systematically violated. Wal-Mart and its contractor pay no taxes to sew their garments in the Dhaka. All that they leave behind is the illegal 20-cent an hour wages and some small rent and fees. In 1998, total government revenues in Bangladesh were around $3.9 billion, a sum far too low to even provide the most basic services to the over 130 million people in the country. On the other hand, Wal-Mart's sales in 1998 amounted to $137.6 billion, which means that Wal-Mart's annual sales are 36 times greater than the total revenues of the Bangladeshi government. Yet Wal-Mart does not pay a single cent in taxes or tariffs. Unfortunately, Bangladesh, one of the poorest nations in the world, is being forced to subsidize Wal-Mart. Due to inadequate tax base and overall low government revenues, Bangladesh must rely upon foreign aid to meet more than one-half of its entire development budgets. In 1998, Bangladesh exported 732 million garments to the U.S., making Bangladesh the 5th largest exporter worldwide of apparel to the United States. 5 1 About Dhaka. <http://www.buet.ac.bd/mme/sppm/about_dhaka.htm> 2 <http://canadianeconomy.gc.ca/english/economy/globalization.html> 3 < http://web.idrc.ca/en/ev-11045-201-1-DO_TOPIC.html> 4 <http://www.bangladeshobserveronline.com/new/2004/07/13/economic.htm> 5 <http://www.1worldcommunication.org/Walmart.htm#u.s.> ?? ?? ?? ?? ...read more.

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