2001 Question 7

Globalisation is defines as the unrestricted movement of goods and services,

capital, information, with the aim of promoting economic development for all.
Globalization as an ideology in itself seeks to allow the producer of goods or
commodity to have an equal opportunity to access buyers.
Globalization is r a world-wide phenomenon that differs with regard to rich
and powerful countries versus poorer underdeveloped countries like the Caribbean.
There is no doubt that globalization promotes growth, providing countries
worldwide, especially developing ones, with many opportunities for them to
capitalize on. These opportunities of globalization do not come without risks and
the risks of social, economic, and environmental degradation created by poverty. It
is therefore essential that Caribbean countries prepare themselves to embrace the
policies and source support needed from the international community to reduce the
threats and benefit more from the opportunities of present day globalization.
Globalisation has benefitted the rich and powerful countries by lifting many
out of poverty. When a transnational company decides to relocate in low-cost
economies, many new jobs will be created. It can be in production line, technical
areas and also management. People who are once unemployed will now have an
opportunity to improve their livelihood while those who already have working
experience may be able to climb to a higher corporate platform, thus earn better
pay.
It increased growth for the country, with globalisation, goods can easily
penetrate the borders of other countries. Global tariffs on average has been reduced
from 40% to just 4%. Low-cost economies have the most to benefit from this. This
is because of the comparative advantage in manufacturing sector. Unskilled
labours are in abundance and yet level of productivity is comparable. Besides
natural resources are easily obtainable which further reduces the production costs.
As such local economies can pursue export led growth to other economies. Such
strategy allows economic diversification, rather than just having a typical primary
sector. The impact onto local economy can be magnified through multiplier effect.
Another benefit to the rich and powerful countries is it allows exposure for
competition. Firms which were once operating behind walls of barriers will now be

forced to be more competitive. Failure to do so, will force them to exit the industry
soon. Local firms will now be more careful with the allocation of scarce resources
to ensure there is no wastage. They will employ the most efficient techniques of
production. Innovation and research and development activities will increase to
ensure the success of new products, to satisfy consumer needs. Workers must
continuously improve their productivity to ensure that they are still relevant. All
these when combine, will have a powerful supply-side effect that will ensure the
success of local economy in long run
Globalization allows cheaper prices and a wider variety of goods. When
goods is also sourced from outside that means supply of goods in the economy will
increase, causing its price to fall. Thats something to be cheered by most
consumers who are best categorized as low to middle income earners. Consumer
surplus will increase too since the gap between what they are willing to pay and
what they are actually paying increases. On top of that, standard of living will also
increase when there are more choice of goods.
Globalization contributed to develop the health and education systems in the
developing countries. We can clearly see that education has increased in recent
years, because globalization has a catalyst to the jobs that require higher skills set.
This demand allowed people to gain higher education. Health and education are
basic objectives to improve any nations, and there are strong relationships between
economic growth and health and education systems. Through growth in economic,
living standards and life expectancy for the developing nations certainly get better.
With more fortunes poor nations are able to supply good health care services and
sanitation to their people. In addition, the government of developing countries can
provide more money for health and education to the poor, which led to decrease
the rates of illiteracy. This is seen in many developing countries whose illiteracy
rate fell down recently. It is truth that, living standards and life expectancy of
developing countries increase through economic gains from globalization.
Globalization has many benefits and detriment to the culture in the
developing countries. Many developing countries cultures has been changed
through globalization, and became imitate others cultures such as, America and
European countries. Before globalization it would not have been possible to know
about other countries and their cultures. Due to important tools of globalization
like television, radio, satellite and internet, it is possible today to know what is

happening in any countries such as, America, Japan and China. Moreover, people
worldwide can know each other better through globalization.
In conclusion, as we can see, the process of globalization has involved all
the countries around the world. Developing countries such as India, China and
Africa, have been affected by globalization, and whether negatively or positively,
the economies of these countries have improved under the influence of
globalization. The size of direct foreign investment has increased and a lot of bad
habits and traditions erased, but also globalization has brought many drawbacks to
these countries as well. Many customs and cultures are disappeared such as
traditions clothes and some language and expressions have changed. In addition,
the violence and drugs abuse are increased and a lot of deadly diseases have spread
under the influence of globalization. However, although globalization has many
disadvantages, we believe that globalization has brought the developing countries
many more benefits than the downfalls.