Globalization Developing Countries

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Globalization refers to the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of capital (Guiness, 2011). A long controversial subject in all areas of studies, globalization is an overwhelming force that has swept the world. The strong connectivity that now characterizes ties between countries contributes to enhancing the ease of exchanging products, information, or capital. As the world seems to be shrinking with globalization, we now have a better understanding of foreign…show more content…
In other words, globalization has kept Less Economically Developed Countries (LEDCs) behind More Economically Developed Countries (MEDCs) and is contributing to polarizing them by isolating LEDCs as MEDCs continue to dominate markets and Taiki Kinoshita Benefits of globalization in developing countries 2 decision-making. This widening gap cannot be ignored if the world tries to eliminate inequalities. This project aims to contribute to an understanding of the influence of globalization on developing countries. This paper will examine how beneficial the advancement of globalization is to developing countries. In order to achieve the project goals, I first review case studies from Mexico and the USA where there is an enormous transaction involving goods, services and capital along with the impact of NAFTA. Examining the consequences of this huge volume of transactions between the US and Mexico will allow me to acquire knowledge on the effects of globalization on both countries in which economic development is largely different. What is…show more content…
Many countries have opened their markets and have started increasing interaction with the world, which has significantly facilitated the growth of internationalization. Globalization of markets (as cited in Hout et al. 1982, 98) involves the growing interdependency among the economies of the world; the multinational nature of sourcing, manufacturing, trading, and investment activities; the increasing frequency of cross-border transactions and financing; and heightened intensity of competition among a larger number of players. This phenomenon has been stimulated by advances in communication such as ICT, development in transportation and the lowered trade barriers across the borders. Impacts of advancement of globalization on LEDCs Taiki Kinoshita Benefits of globalization in developing countries
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