Globalization And Its Impact On Developing Countries

Decent Essays

Globalization can be defined as an intensive form of worldwide interconnectedness that facilitates the flow of capital, humans, commodities, technology, information, symbols and values due to the advancement worldwide systems of transport and communication. Globalization has created new opportunities for developing countries such as, technology, greater opportunities to access markets, increase in growth and improved living standards. Despite the fact that it has been beneficial for the world economy, it has led to the rise of certain issues in both developed and developing countries. These include environmental degradations, labour exploitations and increase inequity around the world.

The labour market is one of the principle channels through which globalization can influence developing countries. Rapid increases in foreign investments due to globalization have increased employment opportunities in developing countries. The setting up of factories and production plants abroad has helped many workers get employed and move out of poverty. However it also created issues regarding labour employment, income distribution and labour standards. Globalization has a negative impact on workers and causes exploitation due to profit maximization and competition.

Globalization has caused the world 's multinational corporations to search for the lowest-paid workers across the globe. Overdependence on cheap laborers exists due to the inseparable linkage between our daily consumption and

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