Economic Globalism and the new regionalism - Myassignmenthelp.Com

Question: Discuss about the EconomicGlobalism and the new regionalism. Answer: Introduction It is to be stated that the economy of all the countries of the world has become connected and integrated in the modern time. This process started in the early 80s and it has been continuing till date. It is due to this reason that the transportation costs have reduced drastically and the capital flow to all countries of the world have increased due to Foreign Direct investment (Stromquist Monkman, 2014). This process of becoming connected to all the countries of the world has been termed as globalization. Globalization remains till date a popular yet controversial issue which has been defined loosely. The main concerns which have arisen due to globalization are its impacts on income distribution and employment terms. It can be said that globalization has had more significant impacts on income distribution and employment terms in developed countries compared to developing countries (Stromquist Monkman, 2014). The impacts of globalization on developing countries has been subjected t o a lot of debate Project Objective To understand the socio-economic benefits and impacts of globalisation on developing countries To investigate the outcome of developing countries exposing themselves to globalisation To evaluate the effect of globalisation on the income distribution between the developed and developing countries Project Scope This research will talk shed light on the socio economic impact of globalization in developing countries. It will also allow future researchers to conduct researches based on the findings f this research. Literature Review It is to be mentioned that foreign direct investment has increased significantly in service and manufacturing sector. As opined by Obstfeld (2015), the impacts of globalisation are different on different countries of the world. It has potentially impacted the developed countries more than the developing ones. With the advent and advancement of technology cross border trade between developed and developing countries has increased significantly. Globalisation has resulted in the increase in wealth in developed countries. However according to Cavusgil et al. (2014) in developing countries globalisation has caused significant reduction of poverty. The best example of the positive effect of globalisation is the increased economic growth of the developing countries in Asia which has in turn reduced the margin of income distribution between developing and developed countries. However, despite having positive effect globalisation has still not impacted many developing countries where poverty has remained unaffected by the globalisation (Pieterse, 2015). It is to be mentioned that cities are receiving more benefits than rural areas due to globalization. It has been observed that people in the developing countries of Tanzania,Uganda and Kenya have come up with integrated telephone payment transaction method called M- payment. They are using it to transfer money from the people in urban areas to the people residing in the rural areas . The income gap between the between the developed and developing countries has increased following some serious financial problems faced by a large number of countries of the world. It has been noted that ninety percent of the financial transactions of the world were done by only 25 countries of the world. The globalised capital shared by low income developing countries account for less than one percent of the total transactions done worldwide (Dreher, 2006). Therefore it can be mentioned that Globalisation has had positive impacts on only a few of the countries of the world. The socio-economic impact of Globalisation on a developing country was observed by a study to assess the impact of Globalisation on the fields such as trade and economic process, health and education system. The study also shed light on the impact of globalisation on the culture of a country. It is to be mentioned that World Bank is supporting the developing countries carry on trade in international markets by granting loans to such countries. The developed countries are also providing financial assistance to the developing and underdeveloped countries (Bodislav, 2015). It is to be mentioned that globalisation has reduced the chances of war in the modern era as all countries share their resources and wealth. People and materials are transported across borders which have in turn resulted in creating good relationships between the countries. However, it can be stated that there are some negative impacts of globalisation on the world. The developed countries are being able to open up mo re factories and employ more people from developing and underdeveloped countries due to the low wage rates and low cost of raw materials. This in turn increases pollution and also leads to unequal wealth creation. However, it creates more job opportunities for people (Thirwall, 2003). Health and education system- Health and education are closely related to each other and they are the fundamental elements which are essential for the growth and development of a country. It can be mentioned that globalization has had positive impacts on health and educations systems in developing countries. Due to globalization there is an all time high demand of skilled workforce. Such demand cannot be met without improvement in the educations system. People are therefore acquiring higher education to keep up with the demand. This in turn improves the standard of living and life expectancy of people in developing countries. It is to be mentioned that with the increased economic development government of developing countries are able to allocate more budget for health and education system. The life expectancy of people has drastically increased to 60 years which is almost twice of what it was 100 years ago (Meraj, 2013). Globalization has enabled doctors to identify new diseases and discover mediation for such diseases. It is because of globalization that international organizations like World health organization (WHO) and UNESCO are developing steps to increase the literacy rate and eliminate dangerous diseases from countries. However, it can be mentioned that one of the major negative impacts of Globalization is spreading of diseases with the migration of people from different countries all over the world. Highly educated and skilled professionals are moving to developed countries for better life style and higher wages which has reduced skilled workforce in developing countries. (Morita, 2015). Cultural Effect- It is to be mentioned that globalization has both good and bad effects on the culture of developing countries. The culture of many developed countries has been imposed on developing nations. People of such developing countries have inculcated the cultures of the developed nations and have discarded their own culture mainly due to the patronizing attitude of people and their colonial heritages. However, it can be said that without globalization people would have never been able to know about the different types of cultures existing in the world. It can be said that without the advent and advancement in technology it would never been possible to be updated about what is happening all over the world. Globalization has also influenced the consumer behavior of the people in a way that it has become impossible to differentiate between them except for their native language (Ray, 2012). It is to be mentioned that there two issues which are required to be evaluated to understand globalisations impact on income distribution. The first issue is the impact of globalisation income distribution. The second issue is the assessment of whether income distribution is a useful measure of economic development. According to the investigation conducted by the IMF on the 42 countries which house majority of the world population it can be said that a drastic rise in the per capita production level has been witnessed since globalisation has taken place. Thus it can be said that all the major developing countries of the world has become involved in the process of globalization and the socio economic status of such countries has significantly improved due globalizations influence. However, globalization has some drawbacks. Globalization can be held responsible for destruction of the tradition, cultures and languages of the developing countries. Spreading of dangerous diseases and abuse of drugs has significantly increased over the years due to globalization. Research Questions Primary Question What are the socio economic benefits and impacts of globalisation on developing countries? Secondary Questions What will be the outcome if developing countries choose to open or expose its economy to the process of globalisation? What will be the effect of globalisation on the income distribution between the developed and developing countries? Research hypothesis H0- The socio economic benefit due to globalisation is not based on employability level of the people H1- The socio economic benefit is based on the employability level of the people due to globalisation. Research methodology To conduct the research it is important to proceed with research in an organized and systematic manner. The researcher is required to indentify and explore the different techniques available to the researcher to conduct the research. Research Instrument There are three types of research instruments which are used to conduct researches. They are exploratory, explanatory and descriptive. It can be said that exploratory and explanatory merely explore the research questions and do not provide conclusive solutions (Billig, Waterman, 2014). Therefore the descriptive approach has been adopted to conduct the research in an efficient manner as it will provide a conclusive solution. Data Analysis Process It can be mentioned that the researcher will collect data from primary sources for conducting the research. The researcher will conduct a survey and analyse the results of the survey using the SPSS statistical tool. It will help the researcher to provide recommendation in an organized manner. Sampling There are two types of sampling process required for conducting researches. They are probability and non-probability sampling (Neuman, Robson, 2014). To conduct this research the researcher will use the probability type of sampling as it will provide a definite solution. The researcher will make questionnaires and conduct the survey on hundred people to analyse their views on impact of globalisation on developing countries. Interviewing and questionary design Semi structured interview will be used by the researcher to conduct this research in an efficient manner as it will be instrumental in maintaining a balance between flexibility of an open interview and a structured ethnographic survey (Brinkmann, 2014). Reliability and Validity of Data There are various types of protocols available to ensure validity and reliability of data collected in a research. While conducting this research the researchers will to take measures to ensure data integrity and will also have to take measures to analyse the data strategically to ensure that it is valid and reliable. Research Limitations To conduct this research the researcher has mainly faced the problem of time constrain and shortage of budget. The shortage of time and the budget are the primary limitations. Time Schedule Activity Months 1st Week 2nd Week 3rd Week 4th Week 5th Week 6th Week 7th Week Finalizing the topic Collecting data from secondary sources Forming a layout of the research work Conducting Literature review Forming the research plan Selecting appropriate research methodologies Concluding the Study Designing a rough draft Conclusion Thus in conclusion it can be said that after conducting this research it is expected that the results of such research will help identify the positive as well as the negative impacts of globalisation in developing countries. The impact of globalisation is expected to be beneficial to both developing and developed countries as it will create increased employment opportunities and lead to increased wealth creation. 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