Globalization and Its Biggest Winners and Losers Essay

Globalization and Its Biggest Winners and Losers - Essay ExampleGlobalization is characterized by many factors including increased outside(a) trade, multinational companies whose activities are based in several nations, great dependence on the global thrift and free movement of capital goods and services. Although associated with many sparing benefits to the participating nations, research has indicated that many nations fail to whoop it up the benefits anticipated from globalization (Jacobs and Michael, 2003). The Biggest Winners and Losers in a Globalized World Several years of globalization efforts witnessed have lead to an imbalanced economic scenario where economists have unanimously come into a consensus that globalization only favours some nations. A critical examination and comparison of both highly- real and undeveloped nations is a clear revelation of this existence (Bhagwati, 2004). Because of this imbalance, developed nations have emerged out as the biggest winners in a globalised world. These developed nations include America, china Canada and separate nations in Europe and some parts of Asia. Undeveloped nations are mainly instal in Africa and some parts of South America. Developed nations economies are largely industrially driven as unlike to undeveloped nations who mostly rely on agriculture as their main economic drive. The disparities translucent in export levels between developed and undeveloped nations is a typical example how developed nations absorb in a globalized economy as opposed to their undeveloped counterparts. A report published by an independent group of scholars and economic experts focusing on living patterns in poor countries indicated living standard were worse than it was a decade ago. According to this report a fifth of the worlds richest nations were found to control 82 percent of the world export market. Direct investment is highly dominated by people from the richest with high figures of 68 percent. While maj ority of populations in poor countries still live downstairs poverty levels characterized by widespread unemployment, a big population in developed nations are engaged and they live above poverty levels (George, 2007). Globalization has led to opening up of market base, which has in frolic triggered increased industrial production of unhomogeneous commodities in order to cater for the increased customer needs. This has seen a rapid increase of exports from developed to undeveloped nations. As a result, industrial sector in developed nations experiences a harvest-tide due to ever-growing globalization. Growth of industrial sector avails several benefits in developed nations. It facilitates growth of other sectors such as education and infrastructure further contributing to economic growth. Contrary to slight developed nations, the rate of unemployment is much lower in developed nations due to ever-growing industrial sector. The level of innovativeness is withal greatly supplem ented by the wide variety of industries present in these nations (Roy, 2005). Over dependence of undeveloped nations for various products from their developed counterparts has led to emergence of market monopolies, which developed nations use for their own economic gain. There has been a rise in number on international companies originating from the rich nations and expanding their market base to the less developed nations. A typical example can be drawn from china, which has expanded its market base in African countries (Scholte, 2000). The country strategically produces low quality goods, which are affordable in the African market. Because of economic status of African market, such substandard goods often remain more popular as opposed to genuine but more expensive goods. The benefits leapt through this strategy are immeasurable and have vie a crucial in