To What Extent Does Globalisation Economically Benefit Developing Countries
Module Code: PM504 2T (SS1)
Class/Group: Group A, Class F
Module Title: Skills for Study 1
Assessment: Essay
Assignment Title: To what extent does globalisation economically benefit developing countries?
Tutor Name: Graham Henderson Student ID Number: 2059661
Date of Submission: October 25, 2012
Globalization is a source of both hope and apprehension, especially for developing countries. During the past several decades the greater accesses to developing country markets have improved the productivity and living standard and brought significant benefits to economic growth of the world. On the other hand, these positive influences coincide with shaper polarization, heighted the level of inequality within developed and developing countries (Stallings, 2007). Therefore, this essay will contend that the growth provided by globalization in developing countries is short-term; in the long-term, the huge capital flows, the exploitation of labor and the depletion of resources will create an imbalance in global order which will benefit neither developing, nor developed countries. Therefore, the aspects of foreign investment liberalization will be introduced firstly, and then will be international division of labor and management of natural resources will be analyzed thirdly. At last, the conclusion of this essay will be drawn.
Recently, the majority of developing countries trend to rely on private capital as a source of funding. Since the early 1990s, the external capital flows have made a great contribution to the funding that has made up over 75% (Tanzi, 2004:532). The major reason to this capital flow, from less than 30% in the early 1990s to nearly 70% in total by 1998 of sharing on funding, is foreign direct investment (FDI) consistently (UNCTAD, 2003). Since the late of 20th century, due to the great benefits from foreign investment, many countries, developing countries in particular, have changed or created the policies and environment to be more
Class/Group: Group A, Class F
Module Title: Skills for Study 1
Assessment: Essay
Assignment Title: To what extent does globalisation economically benefit developing countries?
Tutor Name: Graham Henderson Student ID Number: 2059661
Date of Submission: October 25, 2012
Globalization is a source of both hope and apprehension, especially for developing countries. During the past several decades the greater accesses to developing country markets have improved the productivity and living standard and brought significant benefits to economic growth of the world. On the other hand, these positive influences coincide with shaper polarization, heighted the level of inequality within developed and developing countries (Stallings, 2007). Therefore, this essay will contend that the growth provided by globalization in developing countries is short-term; in the long-term, the huge capital flows, the exploitation of labor and the depletion of resources will create an imbalance in global order which will benefit neither developing, nor developed countries. Therefore, the aspects of foreign investment liberalization will be introduced firstly, and then will be international division of labor and management of natural resources will be analyzed thirdly. At last, the conclusion of this essay will be drawn.
Recently, the majority of developing countries trend to rely on private capital as a source of funding. Since the early 1990s, the external capital flows have made a great contribution to the funding that has made up over 75% (Tanzi, 2004:532). The major reason to this capital flow, from less than 30% in the early 1990s to nearly 70% in total by 1998 of sharing on funding, is foreign direct investment (FDI) consistently (UNCTAD, 2003). Since the late of 20th century, due to the great benefits from foreign investment, many countries, developing countries in particular, have changed or created the policies and environment to be more
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