Question

Is economic integration positive or negative for economic development of the richer/poorer countries? Elaborate your answer.

Answer 1

Globalization is the process of economic, political and cultural integration. It has broken the production and distribution barriers among different countries and helped facilitate trade especially among developing countries. Though it has increased the scope of trade and expansion along with greater opportunities to other fields as well, it also portraits challenges related to the environment, instability in financial markets and inequality growing within and across nations.

Economic integration helped developing countries increase economic growth and solve poverty problems. It has led some of the developing countries to grow even faster than developed ones. However, there are claims that it helps rich countries become richer and poor countries become poorer. But although poorest are not getting poorer but there is also no change in their state of vulnerability even after globalization ushered in and claim to make people better off.