Globalization is the result of human innovation and technological progress. Many people view globalization in different ways. Globalization refers to the widening and deepening interconnections among the world’s peoples through all forms of exchange. Some view Globalization as a process that is beneficial, a process inevitable and irreversible; nevertheless, others view it as a big problem for different cultures. A further explanation is that Globalization can be looked at from different aspects, like politically, economically, technologically, culturally.
There are a few important questions that need to be asked when discussing globalization and the effects it has on the developing world. 1. How can the developing countries,
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The numbers involved are still quite small, but in the period 1965-90, the proportion of labor forces around the world that was foreign born increased by about one half. Most migration occurs between developing countries. But the flow of migrants to advanced economies is likely to provide a means through which global wages converge. There is also the potential for skills to be transferred back to the developing countries and for wages in those countries to rise. Spread of knowledge (technology) Information exchange is a fundamental and an often overlooked, aspect of globalization. For instance, direct foreign investment brings not only an expansion of the physical capital stock, but also technical innovation. More generally, knowledge about production methods, management techniques, export markets and economic policies is available at very low cost, and it represents a highly valuable resource for the developing countries. The special case of the economies in transition from planned to market economies. They too are becoming more integrated with the global economy. How Can the Poorest Countries Catch Up?
Growth in living standards springs from the accumulation of physical capital (investment) and human capital (labor), and through advances in technology (what economists call total factor productivity). Many factors can help or hinder these processes. The experience of the countries that have