Impact of Globalisation on Developing Nations
Globalisation can be described as the process to integrate the economy, politics and the culture. In case of the developing countries, globalisation plays a very important role. It has been observed that globalisation is capable to provide different types of advantages such as technological advancement, creation of new business opportunities, growth as well as improvement in the market. Moreover, globalisation is capable to improve lifestyle of the people. Along with the positive impact, globalisation also has some negative impact such as deteriorations of the environment, instability in the commercial as well as financial markets and the development of inequality. This assignment is intended to describe the positive along with the negative impact of globalisation in different countries as well as industries.
Globalisation provides an opportunity in front of the developing country so that they can increase their growth in their economy as well as resolve their poverty related problem. In the earlier times, the developing countries has not the opportunity to conduct businesses with the developed countries because of their poor financial condition and share their economic growth but the globalisation provides them the opportunity to conduct businesses. However, after the globalisation, developing countries became successful by making their market effective for investments through a complete reformation of the market and implementing radical changes by taking loans from the World Bank (Lundvall et al. 2011). In order to get more investments from the developed nations and improve the financial conditions, many developing nations that have removed their tariff and make their economy free. It has been observed that, Indian government made an effective economic policy in the year of 1991 that allows the foreign company to invest directly in the Indian market. It has been observed that due to the globalisation, different developing nations such as China and India has achieved huge growth in their economy and becomes successful to decrease the level of poverty (Lambin and Meyfroidt, 2011). It has been observed that due to the globalisation, 16 times that helps have expanded the international trade in the China them to achieve seventh rank from their original rank that was 32nd. For the globalisation, the dependence rate of the trade lifted to 36% from the 10% and the FDI of the country becomes the highest amongst all of the developing countries (BBC News, 2017). For this reason, Chinese economy has achieved recorded amount of growth, which is 9.7%. Chinese economy has achieved this enormous growth in its industrial and IT due to the huge investments from the other developed country. After achieving huge amount of foreign currency and achieving effective amount of the high skilled labour in highest extent, China establishes one of the biggest IT hubs. On the other hand, due to the globalisation,. Indian economy has achieved growth of 11.1% in the year of 2006-2007 from the 5.6% that they have achieved immediately after the globalisation (BBC News, 2017). Therefore, it can be said that due to the globalisation, Indian economy has achieved enormous growth (Budhwar and Debrah, 2013). For globalisation, the living standards of the Indian has been increased, their disposal income has been increased that facilitates overall growth in the Indian economy. Globalisation makes some substantial contribution for the growth of the national economy.
Impact on Education and Healthcare Sector
Figure 1: Growth rate in the China
(Source: BBC News, 2017)
Globalisation mainly created an effective relationship among the developed as well as developing countries and made every country depend upon each other (Mowforth and Munt, 2015). Globalisation helps both the developed as well as developing country because due to globalisation, the developing countries can achieve the flow of resources as well as technology and developed countries highly dependent upon the developing country for their low cost human resources, raw materials, oil and food and the markets for selling the goods that they have developed. However, globalisation has created so many advantages related to trade for the less developed country but it also creates some disadvantages for the developing countries (Benería et al. 2015). The main disadvantages that it mainly creates that is it creates high level of inequality between the rich country and poor country by making the rich country richer and poor country poorer. It has been observed that some of the countries have achieved enormous growth but some of the countries did not achieve that much growth. From the scenario, it is seen that the India and China did not achieved that much growth that the developed nations has been achieved. On the other hand, different underdeveloped countries such as Africa that have highest level of poverty did not achieve any effective growth due to the globalisation. Developed countries mainly set their companies in the developing nations such as China and India to take the advantages of the low level of wages and create huge level of pollution in those countries in order to manufacture products in those countries.
However, globalisation provides an effective contribution to develop the education and the health sector of the developing countries (Narula and Dunning, 2010). It has been observed from the few recent years that globalisation increases the tendency to hire only those people that has higher level of the skill set. This increases the need to achieve higher education. According to Hirst et al. (2015), improved level of health as well as the education is some basic requirements that can improve the status of any nation. Globalisation always secures an economic growth in the developing nations that increases the life expectancy along with the standard of living. Economic growth helps the developing nations such as India and China to improve the infrastructure of the health sector that helps to provide more effective services to the people. Moreover, effective economic growth increases the literacy rates and creates more doctors in any country that also helps to develop the heath sector. After the liberalisation economic policies in the year of 1980s, India becoming one of the attractive country for the foreign investors because of its low costs as well as English speaking human resources. After the implementation of the liberalisation policy, the healthcare sector of the India has grown with the annual rate of the 16% in that time that becomes more than $40 billion in present time (Quora.com, 2017).
Figure 2: Growth of health sector
Negative Impact of Globalisation on Countries and Industries
(Source: Quora.com, 2017)
The growth in the Indian medical sector becomes possible after the globalisation because of the development of the medical tourism, expansion of the healthcare infrastructure, medical equipment markets, and different pharmaceutical organisations (Hill et al. 2013). Different foreign pharmaceutical organisation or healthcare organisation has expanded their services over this country that facilitates enormous growth of the medical sector in this country. It has been observed that in case of the Indian pharmaceutical sectors; more than 22% supplies come from the generic market in all over the world, especially from the Europe and the USA (Quora.com, 2017). Therefore, due to the globalisation, different foreign organisation improves the sector but decreases the possibility for the development of the pharmaceutical company in India. Different developing countries get assistance from the developed countries that helps developing country to decrease the rate of illiteracy. Globalisation helps more than 85% of the total population of the world to stay in this world at least 60 years (Budhwar and Debrah, 2013). However, globalisation spreads different diseases in all over the world, especially in developing country by the travellers. Due to the development of the trade among the developed as well as the developing countries, different deadly diseases such as HIV/AIDS, Bird Flu, Swine Flu etcetera. These diseases create some deadly and very much negative impact on the expectancy of the life. Globalisation has also another drawback that is it causes the migration of different highly skilled as well as qualified professions such as engineer, IT experts, doctors and scientists in the developed countries from the developing countries. This situation decreases the number of skilled labours in different developing countries. It has been observed that from the Asia, almost 70.8 million people migrate to different developed countries.
Globalisation has so many advantages as well as disadvantages on the culture. There are so many countries whose culture have been changed due to the globalisation and became same as the culture of some developed countries such as US and different European countries (Lundvall et al. 2011). Along with the globalisation, different developing countries get several medium such as satellite, television, radio and internet by which they became aware of the western countries. Fort the globalisation, the dressing patterns in different countries has been changed. It has been observed that there are so many young people in the developing nations that watch the shows of some Hollywood star than the shows of the star of their own nation. Along with that, it so very common today to see the teenagers in the T-shirts of the Nike and Shoes from the Adidas, eating from the KFC or McDonalds, however, that was not the picture before the globalisation. This change of the culture affect almost all of the developing nations but due to globalisation different Arab countries such as Lebanon, Syria and Iraq has been negatively affected by this cultural change (Lambin and Meyfroidt, 2011). Moreover, globalisation dominates almost all of the languages and forces all of the country to accept the English as the international language. Due to the globalisation, the structure of the family is also changing in different developing countries. It has been observed that globalisation leads the young people to leave their family when they became 18 years of old like all of the developed countries. Therefore, globalisation negatively affects the culture of different developing countries.
Globalisation possesses certain advantages as well as disadvantages on different industry situated in different countries. It has been observed that the globalisation provides more opportunity to the developed nations to decrease the operating costs in the organisation. Globalisation helps different developed countries to get skilled workforce and raw materials at very low costs but it decreases the employment opportunities in some developed countries (Lim and Tsutsui, 2012). This is because; due to achieve low cost and high skilled staff, most of the countries outsource their jobs.
It has been observed that due to less available and less costly labour, the labour intensive jobs are shifted to the developing nations from the developed nations. In case of the Australia, they are losing their low-tech manufacturing jobs in the present times but their high tech manufacturing jobs are increased with the development of the industries. It has been observed that Australian economy is one of the knowledge based economy that produces and designs some high tech as well as specialised products that are getting positively benefitted the manufacturing sector due to the globalisation. For shifting their labour intensive jobs to the developing nations, this country can easily concentrated on the high-tech sectors that increase the research and development sector along with the sales.
Figure 3: Global manufacturing sector in different countries
(Source: Reserve Bank of Australia, 2017)
For example, due to the wide availability of the effective infrastructure and the decentralised manufacturing structures, helps the General Motor-Holden to utilise the country as one of the effective country to design and produce the cars with Rear Wheel drive. The service sector of the Australia contributes the country 50% of the GDP (Wiliam, 2017). Australia can get more advantages from the developing country by expanding their organisation in those countries because of their effective and advanced financial sector. It has been observed that 6 out of the 10 biggest companies in the Australia are the financial service provider organisations and the banks. Therefore, the effective geographical position along with the highly improved financial sectors can help the country to maintain an effective relationship with the different developing countries of Asia.
It is seen that due to the effective policy of the government regarding the finance the international trade of the country grew by more than 12% and their foreign direct investments has been grown by more than 31% (Wiliam, 2017). This effective global investment helps different Australian firms to get the opportunity to increase the opportunity regarding the production and it also helps them to expand their market. This international trade also helps different organisation of Australia to decrease the risks regarding the exchange rates and the fluctuations in the market. Along with the service sectors, Australia also gets an effective market for supplying their mineral sources (Kotilainen and Kaitila, 2012). It has been observed that according to the international energy outlook report, the energy consumptions are projected to increase by 57% with the year of 2025.
Figure 4: Energy consumption rate
(Source: Energyandcapital.com, 2017)
In this consumption, the China and other different developing countries will consume maximum energy. The main reason behind that, different developed countries have shifted their manufacture-based sector into those developing countries that require more power consumptions (Thirlwall. 2013). Australia is the largest coal exporting country and different organisation of Australia are capable to generate the cleaner coal that provides a greatest opportunity to them to supply coal in different countries. It has been observed that BHP Bilton, which is one of the largest mining related organisations in all over the world, are operating in 25 different countries and supplies their coal in different countries.
With the development of different sectors in Australia, the labour markets are also improved as the result of the globalisation. It has been observed that along with the expansion of different industry in other developing country, Australia also developed their education sector in different developing countries such as the China, Indonesia etcetera. From a recent statistics, it is clear that more than 2.3% population in the all power the world live outside their native countries. Australia also sends their teacher in different developing country and provides them more wages to go to the overseas countries (Ju and Wei, 2010). This strategy helps them to expand their education sector in the developing countries and creates more effective workforce to work in their organisation in those countries.
However, globalisation not only provides high level of advantages, it also provides some disadvantages to the developed nations such as the Australia. It has been observed that due to the subcontracting as well as downsizing along with the flexibility in the labour processes creates high level of the temporary as well as part-time worker (Stromquist and Monkman, 2014). Along with that, it also decreases the weights of the industrial sectors, shrinks the power of the trade union, and reduces the support of the government in case of different social programs. Globalisation forces the Australia to be leaner as well as flexible. After the globalisation, firms are capable to meet the varying range of requirements of the customers with more effectiveness through proper research. This is because they are getting more cost advantages by shifting their high labour intensive manufacturing to the developing country.
Due to the globalisation, the labour market of the UK has been significantly changed due to the access of the low costs labours of different Asian countries and huge amount of enrolment in UK based industry that helps them to get more skilled set of labour. Due to the globalisation, the exchange rates in the entire world are changing that affect the overall finance related health care in the UK. The main reason behind that is the export level of the goods and services in the UK is affected and the level of competition is also rising in all over the UK that creates a huge repercussion on the wage levels in the UK (Blommaert, 2010). Due to the globalisation, UK became successful to expand different industrial sectors in the developing countries and move huge amount of worker in those countries. According to a recent statistics, more than 5.6 million workforce of the UK is living in other countries as part of the globalisation. Due to the globalisation, UK has got both the advantages as well as disadvantages. The main advantages of the globalisation in the UK economy are increasing amount of the economic growth as well as the employment opportunities. It has been observed that, due to the globalisation the resources can be effectively allocated to different productive sectors of different economy (Aizenman et al. 2011). Globalisation mainly helps the UK to increase the exporting from that country that helps the country to achieve more profit. The free trade arrangements among different countries due to globalisations helps the citizen of the country to improve the lifestyle because it increases the monthly disposal income as well growth in the economy. For the effective global trade, the country became successful to achieve the 2.5% growth per year.
The main disadvantages that the UK has faced in their country are limitation of the job opportunities in different manufacturing based organisation (Pieterse, 2015). Rising level of shifting of the manufacturing units in different low costs country along with the increasing level of import penetration, huge n umber of professionals involved in the manufacturing sectors have lost their jobs (Land et al. 2011). In some cases the globalisation compromises the interests of the national economy in highest extent due to the effective financial strength of different multinational corporations, mobility of the capital in worldwide basis and the trade liberalism. This situation mainly allows some multinational organisation to transfer their resources as well as activities across the boundaries of the country that helps different UK based multinational organisation to achieve huge amount of profit but it creates some economic imbalances in rest of the world (Hill and Kumar, 2012). Along with that, globalisation also causes the smuggling of the services as well as goods along with the human trafficking. It has been observed in present time the net rate of immigration is the 2.83 per 1000 population in the UK.
Figure 5: Migration rate in the UK
(Source: Economicshelp.org, 2017)
The arrival of huge number of migrants creates difficulty for the government to identify the criminals that creates the difficultly to provide effective protection to the people of the UK.
Conclusions:
From the above discussion, it can be concluded that globalisation has involved all of the countries in all over the world. Different developing countries such as India, China, Syria, and Lebanon are highly affected by the negative impact of globalisation but despite of this fact, the economy of those countries has been highly increased due to globalisation. Globalisation disappeared different traditions but it helps any developing country to achieve more foreign direct investments that helps any developing country to increase the lifestyle of the people living inside it. However, developed countries have achieved huge economic development but the employment opportunities in the manufacturing sector of those countries have been decreased due to shift of those units in developing countries.
Reference
Aizenman, J., Chinn, M.D. and Ito, H., 2011. Surfing the waves of globalization: Asia and financial globalization in the context of the trilemma.Journal of the Japanese and International Economies, 25(3), pp.290-320.
BBC News. (2017). China economic growth slowest in 25 years – BBC News. [online] Available at: https://www.bbc.co.uk/news/business-35349576 [Accessed 20 Apr. 2017].
Benería, L., Berik, G. and Floro, M., 2015. Gender, development and globalization: economics as if all people mattered. Routledge.
Blommaert, J., 2010. The sociolinguistics of globalization. Cambridge University Press.
Budhwar, P.S. and Debrah, Y.A. eds., 2013. Human resource management in developing countries. Routledge.
Economicshelp.org. (2017). Impact of Immigration on UK Economy | Economics Help. Available at: https://www.economicshelp.org/blog/6399/economics/impact-of-immigration-on-uk-economy/ [Accessed 20 Apr. 2017].
Energyandcapital.com. (2017). The Oil Trap You Can’t Fall For. Available at: https://www.energyandcapital.com/articles/the-oil-investment-trap-everyone-else-falls-for/1416 [Accessed 20 Apr. 2017].
Hill, C.W., Cronk, T. and Wickramasekera, R., 2013. Global business today. McGraw-Hill Education (Australia).
Hill, D. and Kumar, R. eds., 2012. Global neoliberalism and education and its consequences. Routledge.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Ju, J. and Wei, S.J., 2010. Domestic institutions and the bypass effect of financial globalization. American Economic Journal: Economic Policy, 2(4), pp.173-204.
Kotilainen, M and Kaitila, V. (2012).”Economic Globalization in Developing Countries”, The journal of Economic in Developing Countries, pp 70.
Lambin, E.F. and Meyfroidt, P., 2011. Global land use change, economic globalization, and the looming land scarcity. Proceedings of the National Academy of Sciences, 108(9), pp.3465-3472.
Land, K.C., Michalos, A.C. and Sirgy, J. eds., 2011. Handbook of social indicators and quality of life research. Springer Science & Business Media.
Lim, A. and Tsutsui, K., 2012. Globalization and commitment in corporate social responsibility cross-national analyses of institutional and political-economy effects. American Sociological Review, 77(1), pp.69-98.
Lundvall, B.Å., Joseph, K.J., Chaminade, C. and Vang, J. eds., 2011.Handbook of innovation systems and developing countries: building domestic capabilities in a global setting. Edward Elgar Publishing.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge.
Narula, R. and Dunning, J.H., 2010. Multinational enterprises, development and globalization: some clarifications and a research agenda. Oxford Development Studies, 38(3), pp.263-287.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
Quora.com, (2017). Available at: https://www.quora.com/What-are-the-health-economics-indicators-of-india [Accessed 20 Apr. 2017].
Reserve Bank of Australia. (2017). Structural Change in the Australian Economy | Bulletin – September Quarter 2010 | RBA. Available at: https://www.rba.gov.au/publications/bulletin/2010/sep/1.html [Accessed 20 Apr. 2017].
Stromquist, N.P. and Monkman, K., 2014. Defining globalization and assessing its implications for knowledge and education, revisited.Globalization and education: Integration and contestation across cultures, 1.
Thirlwall. A. P. (2013), “Growth & Development with special reference to developing economies”, (7th ed). Palgrave Macmillan: New York.
Wiliam, S. (2017). Globalisation in Australia, Globalisation, The Global Citizen Ecology and Economy, SOSE Year 9, QLD | Online Education Home Schooling Skwirk Australia. [online] Skwirk.com. Available at: https://www.skwirk.com/p-c_s-57_u-507_t-1374_c-5292/globalisation-in-australia/qld/sose-geography/the-global-citizen-ecology-and-economy/globalisation [Accessed 20 Apr. 2017].
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
