Essay About Developing Countries And Consumersgreater Choice Of Goodsbigger Export Markets

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GLOBALIZATION ON ECONOMYBenefitsGlobalization has contributed to reduce the economic gap between the developed and the developing countries, reduce global poverty and to increase the welfare of both the developed and developing countries.Supporting ideasEvidenceNotesTechnology transferThe transfer of new technology from the originator to a secondary user, especially from developed to less developed countries in an attempt to boost their economies.For developing countries in the global economy, they need to be technologically advanced. There is a possibility of importing new technology from foreign developed market, but this will cause a setback as the procedure would be expensive. Therefore, technology transfer in global economy can Successful collaborations are formed between researchers across different universities or industries in order to advance the knowledge in a particular field or to further develop a technology.The transfer of Panasonics microwave manufacturing base from United States to China has led to the presence of 2800 Chinese enterprises to provide components for it, which has not only contributed new technology, but also advanced operations management techniques to Chinese market.Japan transferred successfully the technology of plant breeder selection to Vietnam from 2010 to 2015.Traditional medicine hospital applied effectively the technology transfer to cure disease related to backbone which is chronicFree tradeGlobalization offers free trade and open market.  Free trade is a way for countries to exchange goods and resources. This means countries can specialise in producing goods where they have a comparative advantage (this means they can produce goods at a lower opportunity cost). When countries specialise there will be several gains from trade:Lower prices for consumersGreater choice of goodsBigger export markets for domestic manufacturersImports and exports¨On the other hand, the more a country exports, the more domestic economic activity is occurring.  More exports mean more output from factories and industrial facilities, as well as a greater number of people employed to keep these factories running.Reducing poverty: Trade can help boost development and reduce poverty by generating growth through increased commercial opportunities and investment, as well as broadening the productive base through private sector development.Total export turnover of Vienam in first year joining in WTO had a dramatic increase by 31,3%. After 10 years as an official member of WTO, product commerce of Vietnam reached 350,7 billion USD, more than 3 times as much as in 2007. In 2006, exports and imports of Vietnam rwas ranked in the place of 50 and 44 all over the world. In 2015, export position was in 27 and imports in 28.Labor market integrationFree movement of labour: -Increased labour migration gives advantages to both workers and recipient countries. If a country experiences high unemployment, there are increased opportunities to look for work elsewhere. This process of labour migration also helps reduce geographical inequality. – It helps countries with labor shortages fill important posts.Prevention of “brain drain”: As joining in the global market, the number of multinational companies increases at the same time. Therefore, workers can easily find a suitable workplace for themselves instead of emigrating. +  High- skilled workers are appreciated. It means they can get jobs easier. + Unskilled workers have motivation to improve themselves.Knowledge transfer: There are not only technology transfer but also the knowledge. Employees of the global companies have to be equipped the skills and knowledge to catch up with the pace of global economy. There are a huge number of trainings, courses, skill classes organized for the employees regardless of nationalities and education background.This has been quite effective in the EU, with many Eastern European workers migrating west.The UK needed to recruit nurses from the far east to fill shortages.Increasing FDI(Foreign Direct Investment)Foreign direct investment (FDI) in capital-scarce developing countries can raise the productivity of workers, and thus their wages, by transferring management skills, capital, and technology, and in the process sometimes outsourcing jobs from advanced countries. FDI inflows to developing countries rose from 0.6 percent of their GDP in 1980 to 3.5 percent in 2008.