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Globalization is the process of interrelation and integration either among people, international organizations and the states of different countries or the movement of goods, people or services for free across the globe in an integrated way. Globalization is driven by international trade and investment and is mostly facilitated by advancement on the levels technology. It can also be used to depict the interlinking of different nations for political, economic or educational equity. The interlinking of nationals aids countries to view themselves as part of the world and not as a separate nation. Globalization aims to increase trade among countries by opening up of global economic trade centers around the globe. Globalization also implies that nations loosen the existing trade protocols/barriers to attract investors from other nations into the main sectors of the economy thus a country attracts investors by allowing multinational organization into their economy.
Moreover, globalization implies that nations loosens import and export rules to allow the free flow of people and goods. It is through globalization where nation which has excess supply of a particular good, can export it to the nation with a deficit thus benefiting both the trading nations. Furthermore, nations around the world have to adhere to the rules set by the world trade organization(WTO) to ensure that the terms and conditions of trade are adhered to by all the member countries. There are other bodies which have been set to oversee that all countries follow the agreed principles and policies of free trade as well as the nondiscriminatory policies
However, globalization have both positive and negative impact to the participating nations (Goldberg, & Pavcnik, 2007). On the hand, developing nations are nations with low standards of living, the level of human development index very low, and an underdeveloped industrial base. A country can also be said to be developing if it has low average annual income per person, most of the citizens depends on the agricultural sector and mostly live next to the subsistence sector. Argentina, Chile, Ukraine, Thailand, Mexico, China, Chile, Kenya, Nigeria, Rwanda, Ghana and Philippines are example of developing nations in the world.
Technological innovation and entrepreneurship are the major key drivers of globalization. The impacts of globalization differ from one nation to the other with developing countries leaping higher benefits are compared to the developing ones. However, there are more benefits than negative impacts developing countries leap from globalization. In this paper where going to focus on the effects of globalization from the negative and positive perspectives in China and Ghana as an example of the developing countries.
Globalization has facilitated to the improvement in the standard of living for people in the developing nations. Reduction of poverty is one of the main economic goals of globalization, by developed countries easing the procedures for developing countries to access foreign funds, there can improve on their social amenities and infrastructures thus improving the people's standards of living. In Countries such as China and Ghana, there has been a massive improvement in the education sector, health sectors as well as road and transportation sector. When foreign investors open up business in this countries, fracture such as roads will improve to enable them to transport their goods to the market thus improving the lives of the local in the locality. This is accompanied by the improvement in social amenities such as schools and health sector. Example, in China, the mortality rates have declined with the life expectancy of people doubling by the year 1999. Moreover, adult illiteracy rates in this two countries have declined over the years as a result of globalization (He, Wei, & Xie, 2008).
It is through globalization that developing countries have access to new markets around the world ( Bertucci & Alberti 2001). The removal of trade barriers has aided in the transfer of technology, labor and foreign capital from developed countries to the developing countries. China was able to sell most of its products to other continents such as African thus ensuring their excess products that are not consumed in their local economy are exported to other new markets. According to Bertucci & Alberti ( 2001), the inflow of direct foreign investment has continually increased to the developing nations in the year 1988 and 1989. China and Ghana are some of the beneficiaries of these investments among other developing nations.
Enhanced economic growth. Developing countries benefit from an enhanced economic growth as a result of international trade. The removal of trade barriers between nations allows the free trade thus investors from developed nations start-up business leading to the increase in of the country's economy. Globalization has contributed to the growth of China and Ghana's economy which is usually accompanied by an increase in per capita income.
Reduction of on the level of unemployment. Through globalization, the reduction in trade barriers, tax exemptions and lowering of trade tariffs, investors from the most developed countries relocate to the developing countries to invest in the unexplored markets due to the availability of ready markets. This helps create new job opportunities in the developing countries thus reducing the high level of unemployment in this countries. For example, in both countries, foreign investors have created employment opportunities to the host countries thus reducing the unemployment levels in the economy.
Improvement in the level of technology. This is as a result of investment by foreign investors who trains the employees in the local countries they invest in the new ways of doing business. Globalization has resulted in the transfer of technological knowledge from the most industrialized nations to the developing countries. By relocating, investors will adopt the technology used in their home countries, so the new lands thus giving the locals an opportunity to learn and adapt to the new technology.
Additionally, globalization has contributed to global competition which in the long run contributes to competition in the local markets. This ensures that goods produced are of high quality and prices for the goods are fair to the customers maintaining high-efficiency levels in the economy. It also aids in the improvement of innovative capabilities as well as creative abilities.
Globalization has led to the rise of urbanization in all the cities in the member countries. It is due to urbanization that their infrastructural development as many foreign investors starts up businesses in these cities leading to the rise of demand of more houses in cities as well as the development of more infrastructures to support the future business. Business opportunities will rise as well as there will be opportunities for entrepreneurs to start up businesses as the urban populations will rise as many moves migrate from the rural areas to work for the emerging firms in the cities.
Improvement in the education system. The education sector has improved due to the introduction of the modern education system which makes education easily accessible and enhances the interaction among the students all over the world. The introduction of the online education system has enabled students to take their studies from the comfort of their homes or any other locality. Students can also access learning materials online and interact with other universal students through the online platform such as e-learning. It is also through globalization that developing countries have been able to reform from the informal to the formal education system which yields more benefits to the nations and exposes students to better skills. Globalization has also enabled exchange programs where students from higher institutions can study in any university o their choice anywhere in the world.
Ease in Outsourcing of human capital. Globalization has led to advancement in the level of technology enabling nations with less human capital outsource from other countries through internets such as emails, Skype and other forms of online communication. An example is the freelance writing where developed countries through globalization can outsource writers from the developing nation through the internet to accomplish tasks demanded by the client.
Improved trade between nations. Through the removal of trade restrictions and trade barriers, trade between nations have improved as it has become easy for foreigners to access documents for trade in the countries desired. Also, there are initiatives given by the respective government to attract investors such as subsidies and tax exemptions. Example Ghana can export cocoa to other nations easily due to the removal of trade restrictions. China has also been able to lend their labor to other countries such as Kenya where there given contracts to build up roads around all over the country.
Globalization has lead to increased in the level of innovations. This is evidenced in the banking system where there is introduction of paperless money and credit cards such that people do not need to carry cash around. Also, the introduction of the online banking system has enabled people to carry out the business transaction from anywhere thus they do not have to go and queue in the banks.
Despite the numerous benefits developing countries leaps from globalization, there is also numerous negative impacts globalization has brought to the developing nations. Discussed below are some the disadvantages associated with globalization. According to Kofi Annan (2000), globalization has contributed to increasing poverty levels in these nations. Only a few countries have enjoyed the benefits of globalization while the rest are excluded. Inequality in wealth distribution among the developed and developing countries, the developed countries benefit more as compared to the developing nations making the nations richer while most of the developing countries become poorer. However, poverty in these nations is not only attributed to globalization as poor governance, undefined reforms, corruption, and weak economic policies have also contributed to poverty.
Global warming has been attributed by globalization. The level of water and air pollution have been on the rise by opening up of numerous industries in the developing countries which lacks proper waste disposal. Waste gases from factories are released into the air which has contributed to low rainfall contributing to water shortages which leads to human conflicts as a result of inadequate of water. Air pollution has also contributed to adverse climate changes in many continents contributing to adverse changes in the weather pattern which in turn caused calamities such as drought and famine causing the loss of human and animal lives. Shortage in water have caused conflicts among firms due to lack of enough water to run their industries. Companies which dispose their waste materials into the rivers and other water bodies have to lead to loss of marine lives which are a source of tourist attraction in some countries. Example, in Ghana, air pollution have contributed to the shortage of rainfall in the country as compared to the past where there was sufficient rainfall (Aryeetey, Osei, Twerefou, Laryea, Baah-Boateng, Turkson, & Codjoe, 2001).
With the introduction of machines which ease the process of doing things and reduces the time taken to complete tasks, by the transfer of advanced technology from developed countries. People have lost their jobs as most employers prefer to employ the new tec...
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