Globalization, Pros and Cons for Developing Countries Essay

951 Words Jan 15th, 2012 4 Pages
This Document addresses the advantages and disadvantages of the term “Globalization” for developing countries. Some social, economic and environmental issues are discussed in the paper.
This Document addresses the advantages and disadvantages of the term “Globalization” for developing countries. Some social, economic and environmental issues are discussed in the paper.
Hosein Rahmati
Hosein Rahmati

Globalization, Pros And Cons For Developing Countries
January 2012
Globalization, Pros And Cons For Developing Countries
January 2012

Globalization could be defined as the contemporary trend in all aspects of human life such as cultural, economic and business, political, educational and ... to reduce or remove barriers between
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More, some advantages and disadvantages of globalization for the developing countries are discussed.

1- Advantages:
More Resources for External Finance:
Globalization gives the opportunity to the developing countries to attract more foreign investments. Normally foreign investors are willing to invest in developing countries to reduce their costs. Lower wages for workers and lower tax rates are only two of the interesting characteristics of developing countries business environment for foreign investors.
Higher Growth Rates:
Foreign direct investment helps the capital accumulation. More investement and capital accumulation leads to higher growth rates. So the developing countries can achieve higher growth rates with foreigners’ money.
Technology Transfer:
When foreigners (specifically from developed countries, which are wealthier) invest in a developing country, they bring advanced and higher technologies with themselves. Therefore, developing countries can reach their technology development goals sooner and easier.
Higher Productivity:
More advanced technologies beside the proffesional management experiences that foreigner investors (specifically from developed countries) bring with themselves to the developing countries gifts higher productivity to the developing countries.

Lower Unemployment Rate:
As the foreign investors invest in the

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