What Are The Challenges Of Globalization

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(i)Economy The ever growing dependence between global economies resulting from international trade of goods, services, finances and technological development paved the way for a global economy. Economic globalisation refers to the continual growth and reciprocated integration of world markets and is an unalterable trend which has been developing at an unprecedented rate since the turn of the twentieth century. Rapid technological development, particularly in areas of information and communication, are the two main forces that have fuelled economic globalisation (Gao). Further the expansion of science and technology has substantially reduced the cost of transportation and communication, making economic globalisation a smoother process (Gao). Centralised economies shifted focus to market economies and market oriented reform through world bodies like GATT, WTO, IMF and World Bank galvanised this process. Many countries have steadily reduced their tariff and other blockades whilst implement flexible financial policies (Gao). The development of the financial sector to serve the needs of international…show more content…
Whilst the globalisation process has enabled developing economies to strengthen their market position by, initiating better technologies, introducing foreign capital and management experience, they also face enormous risks. Several reports indicate that globalisation has increased rather than reduced the gap between the developed and developing countries. Secondly, these countries also face the threat of being unfavourably impacted by external factors. Under open market situations, the difference between the realisation of outside economic stability and internal economic stability puts a substantial limit on their macro-economies, weakening their control and
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