Foreign Direct Investment ( Fdi )

2784 Words12 Pages
Without a shred of doubt, globalization has deepened over the years and does not presently show any credible signs of halting. According to the IMF for example; • As a percentage of the world’s GDP, the value of cross-border trade increased from 42.1% in 1980 to 62.1% in 2007. • Foreign Direct Investment (FDI) improved from 6.5% of the world’s GDP in 1980 to 31.8% in 2006. • In terms of minutes spent on international telephone calls, there was a per-capita increase from 7.3 in 1991 to 28.8 in 2006. • In terms of foreign workers, the numbers have increased from 78 million people (constituting 2.4% of the global population) in 1965 to 191 million people (which constituted 3.0% of global population) in 2005. The integration of national…show more content…
The graph below sourced from the World Bank paint a vivid picture of how global poverty for instance is dwindling as globalization becomes more entrenched. Notwithstanding, globalization is Janus-faced; with its positives come attendant downsides. It is obvious that globalization has created and/or sustained certain challenges for all countries in the world. For instance, as asserted by Thomas Friedman, globalization has made the world flat. As posited by Friedman, ideals spread very faster across states, poor countries have a vastly improved access to crucial information for development hitherto restricted to countries making up the industrial world and the voting population has access to information that some years back, only a closed circle of bureaucrats knew. On the flip side, as posited by Pankaj Ghemawat, the world is not flat. According to Ghemawat, there are niggling issues which have ensured that countries have benefited disproportionately and inequitably from the positives of globalization. Such challenges inherent in globalization hold the potential of derailing the positive development that globalization assures. As such, it is important that this meeting of states is used to address some of the most prominent challenges facing globalization. The challenges facing globalization may be grouped broadly into two groups; the challenges caused by globalization and the challenges militating against the promotion of
Open Document