Question

What are some positive and negative affects of globalization on developing countries like Kenya and Ethiopia? What about the United States?

Answer 1

Globalisation refers to the integration of world economies or there is free flow of goods, services, capital, and to some extent human resource as well.

Following are advantages for developing countries:

• Availability of cheaper and quality goods. thus general welfare would rise.
• Availability of new technology when new firms enter the domestic territory,
• Developing countries can easily meet the need of foreign exchange if globalisation occurs in right perspective.
• New idea and innovation flow from developed countries to developing countries.
• There is fall in general price level due to rise in competition level,

Negative effects:

• Domestic firms can not compete against the foreign goods, this domestic industrial base in developing countries could not develop appropriately.
• Globalisation has increased inequalities and rendered many people unemployed.
• Further, globalisation has made developing countries totally volatile as foreign capital behave erratically.

America is facing negative repercussions of globalization even though it is developed country. Inflow of cheaper goods from china has taken toll on employment front. Employment opportunities have decreased as jobs are moving to cheaper destination to maintain profit level.

In face of it, thus most of developed countries such as USA are adopting anti globalization stance to safeguard growth rate and employments.