Effects of globalization on economic development
Globalization is ideal for economic growth through cooperation between countries with superior economic strength and those whose economies are still developing. It can be viewed as a way through which developing countries can do better economically. Telecommunication and widespread use of the internet has contributed immensely to globalization. Barriers are broken to ensure there is a good movement of technology, capital, and goods. Some of the positive effects are positive competition, increased markets, improved distribution of wealth, technological advancement. However, it also has its disadvantages such as inequality, dominance by some countries and interdependence. There are both positive and negative impacts of globalization on economic growth.
Globalization has led to increased market due to the easy movement of goods and services between different regions. It has also enhanced distribution of wealth through payment of taxes and creation of jobs. Innovation and technological advancement helps in increasing the quantity and the quality of goods produced. Positive competition helps to increase the quality of goods and services march up to the expectations of their clients.
One of the negative impacts of globalization is there is a possibility that a country with a superior economy can take advantage of the poor countries to gain more. Also, interdependence where a country relies on another heavily if support is withdrawn one side would suffer. Inequality where the different countries are at different levels economically.
Globalization has advantages as well as disadvantages. It has however been well received by various countries and policymakers since the positives outweigh the negatives.