What Impact Has Globalization Had on Developing Countries - Annotated Bibliography Example

What impact has globalization had on developing countries? Name Institution Professor Course Date Annotated Bibliography What impact has globalisation had on developing countries? Provide a detailed analysis of one country to illustrate the possible impacts Globalisation refers to the processes of increasing liquidity and the advancement of the multidirectional flow of persons, places, information and objects. Globalisation has augmented greatly and established novel prospects for developing and developed nations. The biggest impact of globalisation is on the developing nations. Globalisation has both positive and negative impacts. The focus of this paper is on the impact of globalisation on developing nations with a particular hub on India. Das, N.(2013). The impact of globalisation on sustainable development in the Indian economy. Journal of International Economics, 4 (2), 99-144. This article appears in the peer-reviewed academic Journal of International Economics. The author is a renowned professor in the Indian School of Mines where he teachers Management Studies. The article describes an exploratory study that investigates the impact of globalisation on poverty reduction and economic growth and identifies the essential connection amid sustainable development and globalisation. The methodology used by the author involves a systematic literature review. The findings indicate that globalisation has been a strong force for poverty reduction and growth in different nations, including India. The article contends that globalisation allows development against global inequality and poverty. While globalisation instigates massive potential for economic growth, it prompts insecurities and vulnerabilities. The author concluded that while globalisation constrains some policy options and wipe out surviving jobs and entrepreneurial prospects for small businesses, in the long-run globalisation lowers the rate of poverty. Although the arguments provided in the article are not based on experimental study, they are feasible. According to the author suitable domestic institutions and policies need to be implemented for globalisation to allow introduction of novel prospects for the poor and small businesses. The article is relevant to the essay as it highlights both the negative and positive impacts of globalisation on developing nations. Kunnanatt, J.(2013). Globalisation and developing countries: A global participation model. Economics, Management and Financial Markets, 8 (4), 42-58. This article appears in the peer-reviewed academic Journal of Economics, Management and Financial markets. The author is a scholar at the United Arab Emirates University, College of Business and Economics. The article describes an investigative study that explores the impact of globalisation on developing nations through assessing how developing nations could act as opportunity exploiters and opportunity providers. The methodology used in the article entails a systematic review of literature. The findings indicate that globalisation is beneficial to developing nations and these nations can turn themselves into the twin- advantage nations with great development in Total Factor Productivity and gains in quality of life of their citizens. Kunnanatt (2013) found that globalisation has opened up prospects for developing nations willing to respond via suitable political economy blueprints. According to the author, globalisation has introduced into a global economy, a global network of financial institutions, production facilities and market structures beneficial to developing nations. Kunnanatt (2013) contends that the twin advantage balance is changing in favour of developing economies. The twin-advantage balance has prompted powerful and sustained trend of economic advancement in developing nations. The article does not provide a clear picture of the impact of globalisation on the less developed nations in general because it focuses on nations that have been changed from low-income nations to middle-income nations such as China and Russia. This article is relevant to the topic because it highlight the benefits of globalisation on developing nations. Awuah, G., & Amal, M.(2009). The impact of globalisation: The ability of less developed countries (LDCs’) firms to cope with opportunities and challenges. European Business Review, 21 (1), 120-132. This article appears in the peer-reviewed academic Journal of European Business Review. The authors are scholars at Halmstad University and Universidade Regional de Blumenau respectfully. The article describes an analytical study that explores the impact of globalisation on the competitiveness of small to medium-sized companies in less developed nations. The methodology used in the article entails a systematic review of literature on the effects of globalisation on small and medium-sized businesses in developing nations. The findings indicate that globalisation holds positive benefits such as access to modern technology, increased capital flows and access to novel markets. However, globalisation instigates massive challenges such as the decline in domestic job prospects and intense competition. To meet the objectives of the article, Awuah and Amal (2009), formulated two research questions. The first question sought to assess the effect of globalisation on the competitiveness of small and medium-sized firms in developing nations. The second question sought to understand how SMEs in developing nation address the challenges and prospects linked to globalisation. The article contends that powerful relationship between SMEs with non-governmental and governmental institutions is essential as it allows easy access to resources and novel markets. The arguments provided in the article are feasible as regard the impact of globalisation on SMEs in developing nations and how to address the prospects and challenges linked to globalisation. The article is suitable as it highlights the effects of globalisation on SMEs in developing nations and how these businesses can augment their competitiveness. Essay What impact has globalisation had on developing countries? Provide a detailed analysis of one country to illustrate the possible impacts Introduction The idea that the world has become a global village is evident in the modern society. . Globalisation entails the worldwide trend of cultural, political, economic and technological exchanges among countries, people and organisations. The exchanges have triggered interdependencies among nations. Globalisation embodies the notion of integration of nations. Globalisation has prompted immense global debate in the effect of globalisation in developing nations. Proponents of globalisation contend that globalisation lowers poverty through growth in employment triggered by increased capital flows and trade. Supporters of globalisation maintain that globalisation enhances the living standards of people in developing nations, promote economic growth, increases access to novel markets, attract foreign investors besides increasing employment rates. However, globalisation aggravates income inequalities, security risks, the dominance of multinational firms and intense competition. The focus of this essay is on the impact of globalisation on developing nations with a particular focus on India. Positive Impacts According to Das (2013), globalisation is a powerful force for poverty reduction and economic growth in different nations including India. Several studies have indicated that increased foreign direct investment is closely associated with economic growth. According to Haase (2012), the link between economic growth and globalisation has been well recorded. For instance, the rate of GDP or trade in India and China demonstrates the importance of globalisation to a country’s economy. Sustained economic growth is essential for poverty reduction and social growth. In this regard, globalisation has made it possible for nations such as India to pursue international business strategies and trade amid nations. Fewer barriers to trade have prompted enhanced technologies, logistics and transport systems, communication systems and other actors across the world an aspect that enhance economic development. According Awuah and Amal (2009), while globalisation has triggered substantial economic growth, the benefits of globalisation have not been well distributed among states. On the contrary asserts that globalisation has changed the developing nations into actual twin-advantage countries that are successfully integrating with the worldwide economy. In the contemporary world, developing nations have started to syphon off business wealth from overseas to their homelands thereby contributing to the development of their economies. The result is a powerful sustained phenomenon of economic growth in developing nations. It was predicted that by 2010, China, Russia, Brazil and Indian economies would advanced substantially to reach a ten percent of global GDP at purchase power parity ( Kunnanatt, 2013). According to Kunnanatt (2013), developing nations that opened for globalisation has greatly lowered their poverty level and improved greatly on other aspects of socioeconomic significance. Das (2009) confirms that Indian effort to liberalise and globalise instigated improved economic growth and reduction in poverty. Evidently, globalisation lowers poverty because globally integrated economies grow quicker and their growth diffused among different populace groups. Das (2013) asserts that as poverty rates fall, developing nations are becoming more integrated into the global trading system. The biggest challenge in developing nations is poverty and the appropriate route to a sustained reduction in poverty is economic growth. India and China were two geographical focus points of poverty in the world. At least, sixty percent of the absolute poor people lived in China and India. However, because of globalisation, the poor people of India and China benefitted (Sharma, 2009). The fall in the level of poverty in India is as a result of the acceleration in the Indian real GDP growth rate to close to six percent on a yearly basis since economic liberalisation that took off in 1991. The average growth domestic product rate for 30 years before starting of globalisation was 3.25 percent in India (Bigman, 2007). The proportion of the poor dropped from 50 percent during the 1950s to 1980s to an average of twenty-five percent in 2000. China’s economic has translated into significant augments in the capital GDP, that shifted from 1, 071 dollars in 1978 and 5, 500 dollars in 2006 following globalisation. The World Banks has promoted China from a low-income to a lower-middle country. The rise in per capita income has considerably improved the living standards of scores of people (Sharma, 2009). According to Das (2013), there has been a significant reduction in poverty in India in terms of the populace living below a dollar in a day. The World Bank analysis indicated that more rapid development linked to the global reduction in trade protection could lower the number of poor people in India by 13% in 2015. Over one hundred million people would be lifted from poverty from the vibrant productivity effects of globalisation. This is an indication that globalisation promotes economic growth and lowers the poverty level in developing nations. Other benefits of globalisation include an increase in foreign trade, an increase in foreign investment, an increase in the foreign exchange reserve and expansion of the market. The increase in market access facilitates the flow of goods and services from sellers to buyers (Das, 2009). However, the degree to which there is market access relies on the reduction of tariffs and nontariff barriers and rule of origin (Bigman, 2007). Globalisation also promoted technological advancement and an increase in consumer good. Overall, all the benefits of globalisation in developing nations are channelled towards economic improvement and enhancement of living standards of the poor. Negative Impacts While globalisation facilities economic growth and poverty reduction in developing nations, it has also triggered an increase in income inequalities, intense competition and unemployment. More so, globalisation has instigated losses to domestic industries. Foreign competition has augmented in the Indian business environment with Indian industrial units having to compete with foreign industries. Given the low cost and better quality of foreign goods, most of the Indian industrial units have been closed because of intense competition from foreign industries ( (Chandra, 2004). As regards, unemployment, foreign firms operating in India utilise capital intense technology. Besides, some Indian firms utilise imported capital intensive technology. With the increase in the use of automatic machines and computers promoted through globalisation, employment prospects and revenues are lowered. Along with the intense competition, foreign firms have become dominant over domestic companies in India. As a result, globalisation has allowed foreign companies to extend their market shares. For instance, a large share of the soft drink market in India is controlled by Coca-Cola and Pepsi, which are foreign firms. More essentially, globalisation in developing nations has augmented income inequalities in the developing nations’ economies (Bigman, 2007). Apparently, globalisation has benefited multinational companies and huge industrial units and increased income inequalities in India. However, inequalities in income are negative effects experienced by both developed and developing nations. The rise in income inequality across the globe is connected to globalisation and trade liberalisation. In the twenty-first century, the profits gap amid the poor and rich different has augmented in a ratio of 1:72. According to Das (2013), globalisation is often portrayed as undermining national sovereignty, local standards and values and work against a fairer income distribution. Conclusion In conclusion, globalisation is a depending, acceleration and expansion of interactions in all areas of human life. It involves the augmented integration of nations. Proponents of globalisation contend that globalisation enhances the standards of living in developing nations, promotes economic growth, increase employment, promote technological advancement and communication to mention but a few. On the contrary, opponents of globalisation contend that globalisation is not beneficial to developing nations. They argue that globalisation benefits developed nations at the expense of developing nations. Based on the analysis of globalisation in the context of India, globalisation promote economic growth, lowers the rate of poverty, improves standards of living, attract foreign trade, promote technological advancement and promote access to new markets to mention but a few. Globalisation, on the other hand, increases income inequalities, unemployment and dominance of foreign firms and intense competition. Apparently, globalisation has allowed the developing nations to exploit more powerful productive forces that have promoted economic growth and living standards of the poor. References Awuah, G., & Amal, M.(2009). Impact of globalisation: The ability of less developed countries (LDCs’) firms to cope with opportunities and challenges. European Business Review, 21 (1), 120-132. Bigman, D.(2007). Globalisation and the least developed countries: Potentials and pitfalls. India: CABI. Chandra, R.(2004). Globalisation, liberalisation, privatisation and Indian polity: Trade and commerce. UK: Gyan Publishing House. Das, D.(2009). Two faces of globalisation: Munificent and malevolent. UK: Edward Elgar Publishing. Das, N.(2013). Impact of globalisation on sustainable development in the Indian economy. Journal of International Economic, 4 (2), 99-144. Haase, D.(2012). The wealth (and want) of nations: The impact of economic globalisation on the developing world. Perspectives on Global Development and Technology 11(1), 38-49. Kunnanatt, J.(2013). Globalisation and developing countries: A global participation model. Economics, Management and Financial Markets, 8 (4), 42-58. Sharma, S.(2009). China and India in the age of globalisation. UK: Cambridge University Press. Read More