globalization and its effects on developing world
Post on 23-Dec-2015
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OutlineOutline• What we understand by globalization• Introducing globalization, and its characteristics. • Importance of Globalization• Social Consequences of Market Globalization
• Globalization and economic development in Eastern Europe
• Globalization and economic development in Africa.
What is Globalization?What is Globalization?• A Turkish national, receives a Master's degree in
France, will work for an American registered company, which is based in China and started by an Italian....
• This is called GLOBALIZATION!
Has simply Has simply accelerated accelerated and gained and gained
complex complex characteristics characteristics
in recent in recent decades.decades.
Globalization is not a new
phenomenon; early
civilizations in the
Mediterranean, Meddle
East, Asia, Africa, and
Europe have all contributed
to the growth of cross-
border trade over time.
Importance of Importance of GLOBALIZATION!GLOBALIZATION!
Law of Competitive Advantage...(Because of Trade Liberalization)
OpennessOpenness==
(Ex+Im)/ GDP(Ex+Im)/ GDP
• Netherlands 99%• Canada 70%• Germany 56%• South Korea 53%• Norway 49%• France 43%• UK 39%• US 22%• Japan 18%
Economics at the World
Bank have found that
economic growth rates are
closely related to the
openness to trade,
education, and
communication
infrastructure.
Source: IMF
Social Consequences Social Consequences of Market of Market
Globalization!Globalization!• Loss of National Sovereignty • Off shoring and the flight of jobs• Effect on the Poor• Effect on the Natural Environment• Effect on the National Culture
Obstacles encountered Obstacles encountered by EE countries. by EE countries.
• Lack of standardized business accounting knowledge
• Lack of practical applications on education• Coping with the competition from Asia• Too much government interference• Prevailing role of government in contracting• Cultural and language barriers
Market access-Market access-the most the most important important
factor factor considering considering
FDIFDIGlobalization come to
Eastern Europe mainly
through FDI.
The factors helping in
reaching the markets of
Eastern European
countries, may well be tax
advantages offered to
foreigner investors.
Corruption in Privatization.
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