Negative And Positive Impacts of Globalization On Developing And Essay

Negative And dogmatic Impacts of Globalization On Developing And Developed Countries - Essay ExampleThis is because while the countries participate in foreign trade and allows for effectation and exportation of commodities across their borders, the value of flow in the opposite directions is different. The countries export low valued products such as agricultural outputs at low costs to substantial countries while they import highly valued finished industrial products at high costs. Globalization therefore induces a controvert balance of trade on the developing countries, a factor that is reflected on the countries economic status (Simpson, 2007). such(prenominal) has been the fibre in the Sub Saharan nations and their cities such as Lagos that rely on exportation of tatty commodities with limited bargaining power. Developing countries have also suffered from increased unemployment rates because o globalisation with countries such as Nigeria and Kenya loosing as high as 30 percent opportunities to retrenchment (Oduwaye, 2006). The countries narrow market lowly for their exports identifies another negative effect of globalized trade. While most of the countries specialize in perishable agricultural commodities, their markets be narrowed to few countries, a factor that identifies high risks of market volatility. Economic instability in case of breached link between two economies therefore leads to loss in the value of commodities that cannot be stored for a hanker time. Such loses may also occur due to temporary diplomatic challenges and communication barriers. Declining trend in productivity of the countries exports has also worsened their trade deficits (Simpson, 2007). Developing countries have also failed to reap the full benefits of globalization specially with respect to capital transfer across territories. While... This paper stresses that developed countries have derived significant benefits from globalization, especially with respect to gl obalized trade. Specialization in fields of production has for example led to economic advantages towards higher(prenominal) revenues and bread and butter standards. Specialization for example allows for efficiencies and innovation towards cost effectiveness and development of diversified products for a wider market towards higher gross income. Globalization also avails cheap commodities in the developed countries to ensure affordability. Similarly, allowance for transfer of animal(prenominal) property, as has been the case in the United States industries has facilitated efficiencies in production processes. Mobility of intellectual property into developed countries also facilitates technological developments and innovation that can be applied for economic advantages. Most export industries also swirl higher wage rate to their employees and this improves peoples economic and social status. Another benefit of globalization on developed countries is the freedom of movement of capit al that allows their investors to explore countries whose interest rates are relatively lower than domestic rates.This report makes a conclusion that globalization has largely interlinked different part of the populace through economic, social, and political integration. This is associated with a level of interdependence and identifies many impacts, negative and positive, on both developed and developing countries.