• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Does globalization hinder or help wealth creation in development countries?

Extracts from this document...

Introduction

Does the process of Globalization help or hinder wealth creation in developing countries? ________________ Globalization is one of the most discussed topics in today`s world, and there are different opinions whether it helps or hinder wealth creation in developing countries. First, this essay will engage with defining the term globalization. After that, the essay will focus on the positive and negative effects of globalization on developing countries, such as employment, economic recession, migration, domestic economy, available capital and financial sector development. After that, the essay will try to represent a case, which will reinforce that at large, globalization has helped the wealth creation in developing countries. To understand the effects of globalization on developing countries, it is important to define first globalization. The term contains many different aspects, features and qualities. This term is generally used to define a mixture of cultural, social, economic and political changes that have created the world over the past few decades (Guttal, 2007). According to Rosenau (1997, p360) globalization is a â"a label that is presently in vogue to account for peoples, activities, norms, ideas, goods, services, and currencies that are decreasingly confined to a particular geographic space and its local and established practices". ...read more.

Middle

International Migration and Emigration are seen in different ways by developed and developing countries. Due to fast population growth and growing unemployment, people from developing countries encourage more liberal migration policy. Because of industrialization, the number of skilled people requested by developed countries has grown up significantly, so people from developing ones prefer to move overseas for the hope of a better life. For example, at the 90s, over 300.000 Latin American and Caribbean professionals and technicians were living outside of their birth origin countries, mostly in the United States, where 12% of (Villa and Martinez, 2000) of those who hold a degree in science or engineering are foreigners, with a majority from developing countries (Pellegrino, 2000). However, in a long term run, immigration and emigration globalization can be seen as positive impact on developing countries because there is a potential opportunity that those skilled workers who left their countries will return home, therefore they will transfer their skills and knowledge back to the developing country. According to Vitez, one of the biggest positive effects of globalization on developing countries is free trade, where they are able to export and import without any governmental intervention. ...read more.

Conclusion

Importantly, by diversifying across more stocks you reduce the specific of holding individual stock and become more exposed to the market and economic. However, other writers also found evidence that shows how globalization is relevant to financial sector development. For example, Woochan and Wei (2000) identify that Brazil and the Philippines are countries who experienced higher returns because of stock market liberalization. Globalization facilitates international market The argument in the process of globalization go extra miles indicating that the effect of globalization on developing countries since it facilitate free trade and international markets. Brittan (1998) indicated the extent globalization led to the marginal increase of the world developed nations and the same time powered reduction in the developing countries, by citing Asian countries. For example, China has joined the globalised system much more enthusiastically, even though they joined it later than Japan, its trade in 2004 was equal to 70% of its GDP, and received $60.6 billions of foreign direct investment in that year, while Japan received only $20.1 billions. (Overholt, 2005). In conclusion, the essay had an overlook at the positive and negative effects of globalization on developing countries. In my opinion, the advantages of globalization, such as free trade, economic boost far outweighs the disadvantages. On the large scale, globalization has done more to improve wealth creation in developing countries than hinder it. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Human & Social Geography section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Human & Social Geography essays

  1. Petroleum and Politics. The report aims to analyse the evolution of oil over ...

    (OPEC, 2009). Historically there has been a huge controversy to define the OPEC as a cartel or as an oligopoly. According to Liefman (1977, p.7) cartels are 'voluntary agreements between associations of independent enterprises of similar type to secure a monopoly of the cartel'.

  2. Explain the effects of discriminatory practice, within an early years setting.

    Anti -discrimination put equal opportunities into action and means that positive steps are taken to combat the various types of discrimination. As professionals early year's workers role and duty is to make sure that children are value and not discriminated against either by adults or by other children.

  1. DEVELOPING COUNTRIES The responsibilities UK/Britain (MEDC's) has in relation to developing countries

    volcanoes, earthquakes, tsunamis), or human inflicted disasters (i.e. war, global warming). There are three main types of aid; bilateral aid, multilateral aid and voluntary aid. Bilateral aid is, aid provided by a donor country to a recipient country government. This also contains financial assistance for development projects granted to individual national institutions.

  2. There are four key concepts of globalization, Stretched social relations, Rationalisation, Intensification and Interpenetration. ...

    Environmental degradation can be bought about by pollution and over exploitation of resources. Globalization brings wider industrialization and therefore more widespread pollution and more use of environmental resources. For some time the transformation of the environment was considered a necessary change, for example construction of irrigation systems and flood control dykes.

  1. Regional Development and Policy - Explain the changing role of the state in regional ...

    However there has been a change in the regional problem with the convergence to some extend of the traditional North South divide, the problem is now much more interregional therefore the devolution of control to local authorities has definite positives as they are able to some extent to control their

  2. Bottom Billion. Currently, most of the bottom billion people live in ...

    These people are hopeless in poverty and with small chance to get rich; they will join a rebel movement. Therefore, the negative growth and low income people will cause civil wars constantly in bottom billion countries. These civil wars cause many negative effects. It reduces growth by 2.3% per year.

  1. Child Development essay

    problems in later life may occur, ranging from eating disorders to prostitution. Clinical observations that show children suffering negative emotional effects from childhood sexual abuse have been supported by several studies (Finkelhor et al,1986). This would indicate that although the abuse suffered is physical, it may have psychological effects on emotional development.

  2. The process of globalization and its impact on agriculture in Africa.

    The rewards of the system were highly skewed across countries and social classes and despite the overall growth, the social pressures, amongst classes and competing nations, led to a backlash that plunged the world into 70 years of global insecurity.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work