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

identify and discuss four major managerial factors that lead to dis-economies of scale

Calculate the enthalpy change for stepE. that is for the reaction: Na(s)+ water (arrow) Na(ion)+ OH(ion)+ Hydrogen (g)

What is third degree price discrimination? Explain with case analysis,give two successful & unsuccessful cases of 3rd degree price discrimination.

What is ceteris Paribus?  Ceteris paribus is a Latin phrase, literally translated as "other things the similar," and usually rendered in English as "all other things being equa

a firm has fixed costs of $60 and variable costs as indicated at the bottom of this page. complete the table and check your calculations

please can you explainn what "down 0.1 percentage point on the quarter means"?

Indirect Utility Functions: Let qi denotes commodity i and pi is the price of that commodity. Let y denotes money income of the consumer. Suppose vi = pi/y. The budget constra

Explain consumer sovereignty and why it might not be that extensive in real life. Explanation of consumer sovereignty Use of S/D model to show how changes in consumption pat