Impact of Globalization on Developing Countries

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India, China and other developing globalization countries, with adopting measures for financial integration not only got rid of their poor economic conditions, but they have also been able to offer one of the most competitive economic opportunities to the rich nations even during global economic crisis. These nations presented a very positive outlook of the liberalization and privatization processes.

However, in this context, it will be wise to learn about different views and opinions on globalization.

About Globalization

The meaning of globalization may vary from person to person depending on the context. There are some scholars who believe that globalization is not only about growth in technology and communication, opening of world trade, rising of multi national companies, population migration or expansion of financial markets. Globalization, according to them, cannot also be defined in terms of capital, statistics, ideas or goods alone. They hold that globalization causes pollution, infections and diseases also. Hence, both the positive as well as negative impact of the globalization has been shown here.

The other views suggest that globalization means financial consolidation of the world channelized through free trade and capital inflows. This is also inclusive of technology transfer and knowledge. Free labor movement between the countries is another aspect of the globalization. As per India is concerned, globalization means opening doors for foreign direct investment (FDI) by facilitating the process of investment for international companies in various areas of economic activity in the nation. It also signifies MNCs entry into India and tie-ups of Indian companies with foreign institutions. Launching joint ventures in the foreign destinations and liberalization programs are also the part of the globalization process in India. Thus, in the context of India, globalization is primarily referred to as policy reforms.

Globalization and Developing Countries

Globalized countries like India and China emerged stronger during the worst global recession period and continued to rule the chart with their impressive performance. The credit for this can be given to their policy reforms that hit the right chord at the right time, making them one of the safest destinations for the foreign investors. Today, most of the developed nations are looking keenly at these two developing countries to come out of the troubled waters and to re-establish their economy on firm grounds. Governments of both India and China are also trying their best to attract capital inflows as much as possible by relaxing their tax and duty rules.

Truly speaking, this is the real effect of globalization and all the globalized or globalization countries whether developed or developing can draw huge benefit from this system, if aptly used.

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Corporate Globalization