Globalization Has Increased The Vulnerability Of Developing Countries

1406 Words Dec 7th, 2014 6 Pages
Introduction: (350-400)

Economic Globalisation: (37)
The decade of the 1990s has witnessed an inevitable process of globalisation all over the world. In a single, integrated world market, globalisation refers to a broader and deeper growth of international trade, culture, finance and technology.

Globalisation and developing countries: (248)
Through trade, investment and capital flows, globalisation exerts a profound influence on the whole world, especially the countries of the South.

Globalisation can accelerate economic growth and boost international cooperation. It provides opportunities, at the same time, presents challenges and risks.

Globalisation has increased the vulnerability of developing countries. As financial crisis has illustrated, the lack of sufficient institutional arrangements, as well as the ineffective control has generated instability in the international economies which cause devastating results for those counties of the South, for example, the Mexico’s financial crisis in 1994 and the Asian financial crisis in 1997.

The second challenge is the income gap. The antiglobalisation movement declares that globalisation is enlarging the gap between developing countries and developed countries (Mazur, 2000). Evidence suggests that in the period from the late 1980s to the mid 1990s, which is also an era of speedy process of globalisation, the average Gini coefficients in underdeveloped countries ascend from about 0.25 to 0.30 (IMF,1998). Moreover, one…
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