Increased Standard of Living
Economic globalization gives governments of developing nations access to foreign lending. When these funds are used on infrastructure including roads, health care, education, and social services, the standard of living in the country increases. If the money is used only selectively, however, not all citizens will participate in the benefits. Access to New Markets
Globalization leads to freer trade between countries. This is one of its largest benefits to developing nations. Homegrown industries see trade barriers fall and have access to a much wider international market. The growth this generates allows companies to develop new technologies and produce new products and services. Widening Disparity in Incomes
While an influx of foreign companies and foreign capital creates a reduction in overall unemployment and poverty, it can also increase the wage gap between those who are educated and those who are not. Over the longer term, education levels will rise as the financial health of developing countries rise, but in the short term, some of the poor will become poorer. Not everyone will participate in an elevation of living standards. Decreased Employment
The influx of foreign companies into developing countries increases employment in many sectors, especially for skilled workers. However, improvements in technology come with the new businesses and that technology spreads to domestic companies. Automation in the manufacturing and agricultural sectors lessens the need for unskilled labor and unemployment rises in those sectors. If there is no infrastructure to help the unemployed train for the globalized economy, social services in the country may become strained trying to care for the new underclass.
1. International Journal of Business and Social Science Vol. 2 No. 23 [Special Issue – December 2011] Globalization and its Impacts on the World Economic Development Muhammad Akram Ch. (1), Muhammad Asim Faheem (2) , Muhammad Khyzer Bin Dost (2), Iqra Abdullah (3)(1) Additional secretary higher Education Department, Punjab, Lahore(2) Lecturer, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan(3) MS Scholar Department of Management Science COMSATS Institute of Information Technology, LahoreAbstractThe question whether the Globalization is beneficial for the World or harmful, is still unsolved and verycontroversial. Besides all of its disadvantages, it is an accepted reality that globalization is expanding veryrapidly throughout the world. This paper is an attempt to find out what is the true sense of Globalization? How itis affecting the International Trade, FDI, and Economic Developments of overall word? This paper is mainlyfocusing on measuring how the Globalization is affecting the fastest growing industries of World.Key Words: Globalization, Economic Development of World, Fastest Growing Industries of World.IntroductionHave you ever noticed that how close the different nations of the world are, in this era? If you visit a Super Storeof Dubai, you will find all the commodities, imported from other countries. Only some commodities are there thatare actually manufactured in United Arab Emirates. You will find the Electronic items made in Malaysia. Mobilephones made in India. Food items as fruits, rice etc are imported from Pakistan. This situation is not only limitedto UAE, but the whole world is facing the same scenario.Volume of goods, services and investments is transferring the national borders very rapidly. Now a dayapproximately $1.5 billion foreign exchange transactions are taking place daily. Statistics show thatapproximately $8.9 trillion of goods are transacted across borders and $2.10 trillion of services are providedacross the borders (Hill, 2009). As far as the definition of Globalization is concerned, it is still a controversialtopic. So far there is no consensus on a single definition of Globalization between all disciplines of life.Economics focuses on...
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