The Economics of Globalization

Paper Summary:

The paper examines how the globalization process holds unprecedented opportunities for developing nations to establish long-term economic growth by taking advantage of the availability of capital and the willingness of advocates in the West to help achieve institutional reform consistent with economic growth. It looks at how the economic potential for the investor and developing economy is considerable and how the awareness is increasing that flexible economic policies are necessary for long-term success and stability. It also shows that while both sides have contributed positively to the debate on whether or not globalization is beneficial to developing countries, the proven and moderate approach of the globalist who advocates for institutional reform is proper, inclusive of some of the worthy approaches made by the sceptics and has the greatest chance of success.

From the Paper:

"To the observer, an important implication of Scholte's idea of transworld production is that it offers underdeveloped nations the opportunity for economic growth by making more efficient use of their methods for the production of raw materials. A plant for raw materials might be located near the source of extraction to warehouse the supplies as they await shipment, or a basic textile factory might be located in a populated area with an adequate labor supply to provide jobs and warehousing for finished goods before shipment. Political relations on an international basis inevitably must come to accommodate these supraterritorial links between the producer in the industrialized world and the supplier in the developing nation because such links benefit both."

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• Argumentative Essay # 30321 : "The Influence of Globalization"

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