Advocacy of globalisation, Microeconomics

Advocacy of Globalisation:

In support of the movement for globalisation, the following arguments are put forth:

i) Globalisation promotes foreign direct investment and, thus, it enables developing countries to raise capital without incurring international indebtedness.

ii) Globalisation helps developing countries to make use of and adapt technologies developed by advanced countries without undertaking heavy expenditures in Research and Development (R&D).

iii) Globalisation widens the access of developing countries to export their goods and services to developed countries. Similarly, globalisation enables consumers in developing countries to acquire quality consumer goods, especially consumer durables, at relatively much lower prices.
iv) Globalisation implies faster diffusion of knowledge and, thus, it enables developing countries to attain international standards of production and productivity.

v) Globalisation by reducing tariffs and quantitative restriction increases the share of foreign trade as a per centage of GDP. 

In brief, the advocates of globalisation consider it as the engine of growth, technological advancement, raising levels of productivity, enlarging employment and bringing about poverty reduction with modernisation. In nutshell, globalisers are of the view that import substitution path of development is restrictive and instead, economies for their growth and technical advancement should promote export-led growth. India has opted for the strategy of export-led growth during the last 15 years. Consequently, exports as a per centage of GDP have gone up from 5.8 per cent in 1990-91 to 11.1 per cent in 2004-05. Along with this, imports have also gone up from 8.8 per cent of GDP to 13.8 per cent during the sameperiod. Similarly, foreign direct investment flows which were a mere trickle in1990-91 of the order of $97 million shot up to $6,130 million in 2003-04. Anothermajor benefit of globalisation has been the sharp increase in the export of invisibletems, especially software exports. A unique achievement of globalisation is thencrease of our net software export earnings to a level of $23.4l billion in2003-04. There is no doubt that India has started thinking in terms of reachingnternational standards in productivity and thus competing effectively in the global market. 

Posted Date: 11/15/2012 2:25:32 AM | Location : United States







Related Discussions:- Advocacy of globalisation, Assignment Help, Ask Question on Advocacy of globalisation, Get Answer, Expert's Help, Advocacy of globalisation Discussions

Write discussion on Advocacy of globalisation
Your posts are moderated
Related Questions
Axioms: Revealed preference theory is based on the axioms listed below.  •  Consumer will spend all her income on goods. The consumer equilibrium always remains on the budg

What are the possible advantages of free trade? Firms a)  Specialisation and enhanced use of comparative advantage b)  Possibility of advantages of scale c)  Spread


Q. What do you meant by Retained Earnings? Retained Earnings: Business profits that aren't distributed to shareholders (by dividends or other pay-outs) thoughinstead are retain

Why concept of Elasticity is important in economics?  Elasticity is very important concept in economics because it affects the decision of individuals as well as of the whole e

Government increases the taxes on car ownership. Explain the possible market outcomes of such a decision.  As this is a tax paid by owners, and therefore not levied indirectly

1- Explain how a policy mix (like the one used in 1990s) could help reduced to eliminate the budget deficit without having an adverse effect on the output.   Illustrate your answer

Theories and Models ?? Microeconomic Analysis             – Theories are taken in use to describe the observed phenomena in terms of a set of essential  rules and

Working of IFC: The IBRD loans are available only to member-country governments or with the guarantee of member-country governments. Further, IBRD can only make a loan but it

Question: There is widespread belief that the process of globalization has largely bypassed Sub-Saharan Africa, leaving the sub-continent in a state of marginalization in the w