Introduction
Globalization is an aspect of increasing economies operations which not only deals with goods and services but also the upcoming technology and information mostly to the current developing countries. Research on the effects of globalization on developing countries shows that globalization has a lot of benefits as compared to negative effects to those countries. The aspect of globalization has some positive and negative effects on the business of those developing countries and further more it enables the society to share a lot of things. In simple words, we may say that globalization a certain process which brings about opportunities and disadvantages to a country and thus most developing countries benefit from this globalization. This essay will discuss what globalization is, positive and negative effects of globalization particularly in the Middle East developing countries at large.
Body
The word globalization is new word especially to the countries which are developing. Globalization is a topic which is currently being discussed by those countries has already developed and also those countries are in the process of developing. This issue has its supporters and also there are those who also don’t want the issue of globalization. With the help of globalization, people, government, and people from different parts of the world are able to interact and integrate. It brings a forum where individuals from different parts are able to share information and technology thus making their economy better and also reducing the level of unemployment. It is evidently that globalization have made those developing countries to be somehow slave of those developed countries because anything that they want so that to be developed or make their economic life appropriate,
they must adhere to the requirements of the developed countries, (Baldwin & Winters, 2007). With the help of globalization, we have seen that people nowadays are much closer and share a lot of things unlike those old days. Most of the developed countries have managed to go far they are because they have integrated with other countries and shared the important information which helps them develop socially and also economically. When a country produces goods and services, it is possible to transport them from one point to another which means that free trade have been able to operate with the help of globalization aspect. When we experience free trade, we are in a position to purchase a wide range of services and products because we have the ability to get money from the services and products we lend to those who integrate with us.
The idea of globalization have brought about employment because some of multinational companies from developed countries are investing in countries which have not developed and thus creating job opportunities, (Baldwin & Winters, 2007). The common activities and products which we use to better our daily life are some products of globalization. Some of the effects which contribute to better life include access to new way of knowledge, investment opportunities, and technology just to mention but a few. On the other hand we do have the negative effects which have been brought by globalization and some of the aspects include introduction of new diseases, poverty, issues in regard to labor rights and inequality only to mention some. Let us consider some of opportunities and disadvantages which have been brought by the globalization which is affecting mostly those countries which are developing, (Baldwin & Winters, 2007).
Opportunities
The aspect of globalization is a process which creates development both in developed and also in those countries which are developing. Since globalization is a process, communication and technology have enabled most countries to interact and share a lot in common. Most countries are able to share a lot of their things because of transportation which shows them to transport most of their surplus to the countries which are not able to produce such services and products. Internet is one of the major aspects which have enabled globalization to spread fast. It creates a network forum where individuals are able to share a lot of things thus enabling them share ideas and knowledge. Globalization has enabled countries to develop economically because there is a free trade which allows those countries to share market. The cost of goods and services have been able to reduce which means that people are in a position to purchase a lot of things with the small amount of money they have, (Baldwin & Winters, 2007).
Industrial development has been created to developing countries because multinational companies are investing mainly on those countries which have not yet developed. With this kind of investments, individuals are able to earn their living because those companies create employment. New opportunities are created because those companies will require some people to work there because there is no way they can come with all employees from their homeland. Having brought those industries in developing countries, they are in a position to learn more on producing those things and thus they increase the level of knowledge of the residents of the developing countries. The modern technology which is greatly experienced in the developing countries has enabled the economy of those countries to increase drastically, (Baldwin & Winters, 2007).
Challenges and disadvantages of globalization to developing countries
Although much of globalization is to benefit those developing countries, nothing lacks the negative side. Most of developing countries are for globalization but there are some countries which see it as a threat to their life. It is evident that economists have come with valid information about income difference which creates social and economic boundaries between those who are rich and the poor as a result of the so called free trade. There is an increase in poverty level in those countries which are developing due to the imbalance of the gaps between the rich and those who are poor.
Although globalization have brought a lot of development research on daily expense in the society shows that more than one-sixth spend les than a dollar a day which translates that there is high level of poverty in both developed and developing countries, (Baldwin & Winters, 2007). There are a lot of challenges such as competition in this era of globalization. With the increase in new industries which are coming in the market, the market of the services which we are using is becoming wider which translates that those companies need to upgrade their operations. Some of rich countries are putting trade barriers which affect most of those countries which are developing. Another great problem is those multinational companies are sweeping out the local companies because they have no ability to produce quality and effective services and products, (Baldwin & Winters, 2007). Globalization creates employment but also it brings some negative effects to the developing countries as compared to those which are yet to develop.
Reference:
Baldwin, R. E. & Winters, L. A. Challenges to Globalization: Analyzing the Economics: Chicago, University of Chicago Press, 2007
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