These countries have a high degree of economic vulnerability that occurs because of a slight change in price of their economic boosters. The low life expectancy in developed country is because of the inadequate health facilities present in the countries that increases their death rates.
Illiteracy level arises from ignorance and lack of funds to support one through a system of education. Both illiteracy and lack of funds lead to limited levels of industrialization in these countries. The citizens of developing countries leave a medium or low level of living standard. Common behaviors of developing countries are their reliance on exportation of agricultural products and raw materials such as crude oil because of the unavailability of industries to process their materials.
Importance of trade in developing nations Trade has several impacts on the economy of the developing countries. The first positive effect is an increase in resources. Developing countries benefit by having a variety and increased amount of resources such as labor, capital, and land.
This is achievable after sighing of free trade agreements with multiple countries, which have no trade borders and increase sales in the countries. The second effect is an improvement in the quality of life of its citizn because of the variety of imports that the citizens access. Some of the imports are not available within their borders. Other positive effects created are positive foreign relations and increased efficiency in production due to competition created from other counties.
In Africa, trading of raw materials and agricultural products is the main source of foreign exchange for these countries that contributes positively to their economy. Examples of countries, which have benefited from trade, are Saudi Arabia and Mexico. Ways through which trade help nations overcome their obstacle Trade can enable developing countries improve their leaving standards, increase their economy and finally become developed countries. Saudi Arabia is an example of countries that used trade to overcome poverty and lack of industries.
The country extracted crude oil and exported the crude form to most countries in Europe and Asia in the early part of the twentieth century. It used funds accumulated from trade to establish refineries that enabled it to export refined forms of petrol to its customers.
This improved its economy drastically, thus shifting out of the list of less developed countries. Saudi Arabia is currently 56th in the global list of Human Development Index. Ways in which trade can be encouraged in developing nations Trade should be encouraged in the developed nations through bilateral agreements. Since most of the developed nations want to take advantage of the smaller ones, so there should be international laws to protect them.
Those laws should be enforced to show the developed nations that they do not want to take advantage of them. There should be more laws like the fair trade agreement to help these developing nations, so that they can see that not only do they want to trade with them but also help them improve their economy.
This will also help convince the farmers to trade with the developed nations. The problem is not to put these laws in place but to enforce the laws.
An example is Colombia that has these laws that protect their coffee growers and their gem miners, but they are not enforced because this etching still happens in Colombia. I think that these laws should be more favored than any other, because these laws not only protect a country but also protect innocent people. It also helps the protection of developing nations against monopoly. Policies, which should be favored more than others should Free trade agreements have policies that need considerations in terms of affects they have on developing countries.
These agreements ought to have equal terms of service that favor the developing countries. S, Mexico, and Canada. Investors from Mexico who wish to invest in the U. S find tougher terms than those who wish to invest in Mexico. Multi national corporations, finance corporations and wealthy persons contribute less and less proportionally in taxation to national budgets. This means the ordinary people, consumers and local businesses pay more than their reasonable allocation George , p.
More and more people are doubtful as to whether globalisation has delivered on its promises and benefits. Only in ten out of the thirty four countries polled did the bulk of the people think of globalisation as a positive factor for local economic development Falk , p.
World Sourcing and Outsourcing In the corporate world, companies are exploiting the emerging markets in line with globalization. A company like Levono has its products, human resources and facilities in countries around the world. Market trends such as outsourcing have created a time zone that universal. This means that the company can access the resources it needs from any part of the globe where the costs are lower at any time regardless of its time zone. It is a top-down strategy designed to save on costs by handing the non-core operations to a third party who offers the lowest price.
World sourcing is a business strategy that influences the positive aspects of globalization to maximize on value and quality that the company delivers to customers globally Walker ,p. Companies in the global economy can source for everything where the best talent exists and like wise sell where the best market is located.
Companies that practice world sourcing create value twenty four hours a day. The global distribution of resources such as talents and markets has created a nucleus of excellence strategy. A company in this case can have its marketing department in India, designing being done in Japan, its fulfilment centres located in North America and the manufacturing facilities located in China, Latin America, India and Europe. This distribution of resources also means as companies tap into the skills and talents spread across the globe, career choices then cease to be hindered by geographical boundaries Walker ,p.
World sourcing as a globalization strategy is envisaged on the principle that brand cuts across nationality and geographical boundaries. The more a company extends to the entire world for the finest ideas, human resources and processes, the more it develops in the refined essence of its brand name. It is appraised not by nationality, but according to the excellence of its products, services, degree of corporate social responsibility, governance, environmental practices, transparency, and ultimately, the degree of value it conveys to customers globally Walker , p.
Global corporations that world source their products and services are exposed to the inquisitive light and censure from challenging consumers and government watchdogs in different countries. They can only build confidence by complying with the highest principles of governance, compliance transparency, and excellence Walker , p.
Global Networking Debate on networked economy began as early as in Paris. However it is the advancement of Information and Communication Technology ICT that has turned the world into a truly global village. This means a global networked economy.
By definition a global village or a global networked economy means that there is instantaneous relay of information from one part of the globe to another.
- The Global Economy The global economy and global environment are bound up with one another. Environmental change is a consequence of economic development. Environmental change and its consequent health impacts are driven by economic growth, population growth and urbanization.
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The global economy is a complex and multi-faceted system. When one variable changes, such as a dramatic increase in the New Zealand dollar, the spin-off effects can be detrimental to some while increasing the wealth and living-standard of others. The global economy and global environment are bound up with one another. Environmental change is a consequence of economic development. Environmental change and its consequent health impacts are driven by economic growth, population growth and urbanization.
Global Economy Essay The global economy refers to the increasing economic interdependence of the countries and regions of the world. The most recent form of the global economy emerged in the s as a result of advancements in information technologies combined with expanding neoliberal, political-economic philosophies and . The Global Economy THE GLOBAL ECONOMY FEATURES OF THE GLOBAL ECONOMY Nature of the global economy and globalisation The global economy/world economy consists of all the countries of the world that contribute to gross world product through the production of goods and services.