Negative Effects Of Globalization On Mexico
Pre-Undergraduate Pre-sessional Programme
Summer 2014
Portfolio
Title: Evaluate the positive and negative effects of globalisation on Mexico
Student name: Marcelo Akira Matuda Baccarini
Student number: M00508077
Final word count: ######
Project Teacher: Jeff
The Oxford dictionary define globalisation as the process by which businesses or other organization develop international influence or start operating on an international scale. Multidomestic companies are an international company which perceive market differences and formulates its own business such as, McDonalds which are spread across the entire world and proving to be very efficient, …show more content…
depending on the country that you currently are, you can see McDonalds sandwiches made of chicken, pork, fish and even vegetarian. In addition to the multidomestic companies, the global companies (organization that attempts to standardize and integrate operations worldwide in all functional areas) (Ball et.al,2008, p.10) such as Nike which are making the world more globalised, we are eating, wearing, listening, reading and watching the same things in the whole world. Overall the negative impacts of globalization on Mexico outweigh the positive impacts economically speaking.
People may think that the international companies bring more jobs and profit to the countries although a great part of the money do not stay in the country, it goes to the headquarters which are ,generally, the most developed and richest countries in the world. Along with that, international companies tend to destroy the national companies and discourages the development of national technology. In this essay I will evaluate the positive and negative impacts of globalization on Mexico analysing how it have influenced the economy of the country. The ambassador of Mexico Jorge Eduardo Navarrete (2001) claims that not all countries have been able to benefit from the opportunities that globalisation has created. Only a few number of newly industrialized countries such as, the city states of Hong Kong and Singapore, together with Taiwan and South Korea have been able to take full advantage of globalization (Herbert H. 2003). At the same time, Thomas L. Friedman (1999) said that the countries that attempt to avoid the globalization are doomed to poverty and that the more you open your economy to free competition, trade and let …show more content…
the market force the rules, the more flourishing and efficient the economy will be. Friedman also points out that “In 1975 liberal economic regimes accounted for 8 percent of countries and US $23 billion of foreign direct investment, in 1997 they accounted for 28 percent of countries and US $644 billion making the globalization, according to him, inexorable. On the other hand Oswaldo de Rivero (2001) claims in his book “The Myth of Development: Non-Viable Economics of the 21 st Century” that globalization has intensified problems of poverty, inequality, crime, oppression, unemployment and overpopulation.
Paul Cooney (2001) concludes that, while globalization may bring benefits for the elite, the majority of Mexicans do not enjoy these benefits.
Globalization may have increased inequality in Mexico which has one of the most unequal income distributions in the world. According to Cypher (2001). The top decile of the population has grown to more than 40 percent of the nation’s income, a huge difference in comparison to the 33 percent in 1984. The uncontrollable growth of inequality may have started with the “neoliberal model of development “. By the year of 1982 Mexico was the most indebted nation in the world, inflation was reaching almost 100 percent and it was required to them by the IMF and the World Bank to adopt an “ export-at-all-cost” strategy which eliminated most important licenses, drastically reduced tariffs, entered into the North American Free Trade Agreement (NAFTA) etc. In 1994, Mexico has had the highest rate of export growth in the world and at the same time 42 percent of the Mexican population was living below the poverty line. Some indicators show the Mexican government’s failure to translate economic success into a higher standard of
living.
In conclusion the process of globalization are for some people inevitable and for some countries brings lots of profit and help with the economy, although without some politics of distribution of that money, globalization will increase the inequality of countries such as Mexico.
Bibliography
Summer 2014
Portfolio
Title: Evaluate the positive and negative effects of globalisation on Mexico
Student name: Marcelo Akira Matuda Baccarini
Student number: M00508077
Final word count: ######
Project Teacher: Jeff
The Oxford dictionary define globalisation as the process by which businesses or other organization develop international influence or start operating on an international scale. Multidomestic companies are an international company which perceive market differences and formulates its own business such as, McDonalds which are spread across the entire world and proving to be very efficient, …show more content…
depending on the country that you currently are, you can see McDonalds sandwiches made of chicken, pork, fish and even vegetarian. In addition to the multidomestic companies, the global companies (organization that attempts to standardize and integrate operations worldwide in all functional areas) (Ball et.al,2008, p.10) such as Nike which are making the world more globalised, we are eating, wearing, listening, reading and watching the same things in the whole world. Overall the negative impacts of globalization on Mexico outweigh the positive impacts economically speaking.
People may think that the international companies bring more jobs and profit to the countries although a great part of the money do not stay in the country, it goes to the headquarters which are ,generally, the most developed and richest countries in the world. Along with that, international companies tend to destroy the national companies and discourages the development of national technology. In this essay I will evaluate the positive and negative impacts of globalization on Mexico analysing how it have influenced the economy of the country. The ambassador of Mexico Jorge Eduardo Navarrete (2001) claims that not all countries have been able to benefit from the opportunities that globalisation has created. Only a few number of newly industrialized countries such as, the city states of Hong Kong and Singapore, together with Taiwan and South Korea have been able to take full advantage of globalization (Herbert H. 2003). At the same time, Thomas L. Friedman (1999) said that the countries that attempt to avoid the globalization are doomed to poverty and that the more you open your economy to free competition, trade and let …show more content…
the market force the rules, the more flourishing and efficient the economy will be. Friedman also points out that “In 1975 liberal economic regimes accounted for 8 percent of countries and US $23 billion of foreign direct investment, in 1997 they accounted for 28 percent of countries and US $644 billion making the globalization, according to him, inexorable. On the other hand Oswaldo de Rivero (2001) claims in his book “The Myth of Development: Non-Viable Economics of the 21 st Century” that globalization has intensified problems of poverty, inequality, crime, oppression, unemployment and overpopulation.
Paul Cooney (2001) concludes that, while globalization may bring benefits for the elite, the majority of Mexicans do not enjoy these benefits.
Globalization may have increased inequality in Mexico which has one of the most unequal income distributions in the world. According to Cypher (2001). The top decile of the population has grown to more than 40 percent of the nation’s income, a huge difference in comparison to the 33 percent in 1984. The uncontrollable growth of inequality may have started with the “neoliberal model of development “. By the year of 1982 Mexico was the most indebted nation in the world, inflation was reaching almost 100 percent and it was required to them by the IMF and the World Bank to adopt an “ export-at-all-cost” strategy which eliminated most important licenses, drastically reduced tariffs, entered into the North American Free Trade Agreement (NAFTA) etc. In 1994, Mexico has had the highest rate of export growth in the world and at the same time 42 percent of the Mexican population was living below the poverty line. Some indicators show the Mexican government’s failure to translate economic success into a higher standard of
living.
In conclusion the process of globalization are for some people inevitable and for some countries brings lots of profit and help with the economy, although without some politics of distribution of that money, globalization will increase the inequality of countries such as Mexico.
Bibliography