Chapter 9: Problem 11

What is the significance of globalization for economic and social development in the developing countries?

Short Answer

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The significance of globalization for developing countries is substantial in terms of economic growth, access to technology, and cultural exchange. However, it brings challenges of income disparity, cultural dilution, and risk to local industries, which need sensitive handling.

Step by step solution

Understanding the Terms

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. Economic and social developments are progress in the economic and social conditions of society. The developing countries are those with a lower living standard, underdeveloped industrial base, and low Human Development Index relative to other countries.

Effect of Globalization on Economic Development

Globalization has significant effects on the economic development of a developing country. It provides a massive opportunity for economic growth through trade and investment. Developing markets can access new technology, capital flows, and they can set up factories or stores, thereby creating jobs in local markets. It enables improvement in productivity, efficiency, and output, which can lead to economic growth. However, it also can lead to income disparity and dependency on the world economy.

Effect of Globalization on Social Development

On the social front, globalization has increased cultural exchange and broadened people's outlook towards different cultures and lifestyles. Increased access to foreign cultures in the form of movies, music, food, and clothing influences the population to be more cosmopolitan, fostering cross-cultural understanding and improving quality of life. However, the risk of loss of cultural identity and traditional values can be a downside.

Balancing Economic and Social Development

It's imperative for developing countries to integrate themselves in the global economic scenario, primarily for economic growth. However, they must ensure that this globalization does not shadow their unique sociocultural identity and that the economic benefits are distributed equitably among the population. They must also work towards reducing any negative impact on their local industries.

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What is the significance of globalization for economic and social development in the developing countries?

Short Answer

Step by step solution

Understanding the Terms

Effect of Globalization on Economic Development

Effect of Globalization on Social Development

Balancing Economic and Social Development

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