Impact Of Globalization On The Economy

1763 Words Dec 11th, 2014 8 Pages
Introduction-
Globalisation is the process in which economies from around the world become linked through financial integration. Indonesia is located in South East Asia and is emerging into the global economy as an economic powerhouse. Globalisation has had profound impacts on the Indonesian economy and has sparked great change within it. The essence of globalisation means that all economic activity effects and impacts on other economies, e.g. the GFC in America effected all economies throughout the world. To develop its economy, Indonesia has had to make use of macroeconomic policies and trading blocs. During this process, Indonesia has reeked many advantages associated with globalisation, however it has also felt negative effects from the process.

Economic growth-
A countries GDP growth is a good indicator for economic development within the country and there for based off of Figure 1 Indonesia has experience economic growth due to the implications of globalisation. The volatile growth presented in Figure 1 shows Indonesia’s growth patterns which have remained over 5% for the past 4 years. Indonesia’s GDP growth has remained above the global average consistently, which reflects the health of their economy. Indonesia’s current GDP is at 3,475.25 USD per capita. However the GDP is a generalised average and does not take into consideration the lowest income earners in poverty, as a large percentage of the national product is shared amongst only a few of richest people and…
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