In the recent past, the global regime has experienced significant development that has resulted in the establishment of regional integration and globalisation. Globalisation can be defined as the aspects of increasing financial and economic integration to encompass all the economies of the world. The aspects of globalization are manifested in the establishment of production, financing, sales and also in the distribution of goods and services (Ismihan et al 2008). Given that some nations were opposed to the ideology of globalisations, the proponent so globalisation has asserts that these beliefs have significantly enhanced the aspects of globalisation.
Globalization mainly in the financial is increasing drastically, is opening up the new venue in the developing, and develops nations. The major impact that has contributed to the developing countries is opening venue for foreign capital and investors’ sectors (Hopkins, 2010). The government have been able to access to foreign loans, which are used in the development of the infrastructure such as roads, railways; health care and social services such education. The investment such sector will improve the standard living of citizens, however not all the investment will benefit all people because it done selectively (Ayyagari, 2011).Globalizations also provide market of products from developing countries to the international market. In the process, it allows the companies to acquire new technology and develop new products that can compete in the international level. Wide market allows the companies to create new investments thus creating new jobs. Nevertheless, globalization my lead to closure of some companies in the developing nation due to influx of imported inferior products, which may be cheap. This makes a country to register negative economic growth certain sectors (Hopkins, 2010).
The consideration of the development of globalisation has taken toll in the recent past and significant studies have been conducted to enhance participation of the global nations. Analysis of the records has stated that global economies have continued to embrace the aspects of globalization in the conduction of business activities and in the exchange of ideas. In this regard, technological advancement has been cited as one of the leading factors that has enhanced development of globalisation (Khavul et al 2010). In summary, globalization is a process where the countries all over the world come together in sharing products, ideas and culture because of improved transport and telecommunication infrastructure such as internet and promote sharing of economic and cultural activities (Ayyagari, 2011). Analysis of the records has shown the IMF and WTO have significantly enhanced the establishment of globalisation by enacting rules and regulations that enhances omission of taxes and tariffs. The establishment of tariffs has been cited as one of the measures that have reduced the activities of international business and the reduction of these tariffs by international monetary funds and world trade organization has resulted in the enhancement globalisation (Murthy 2008). In the wake of these developments, the establishment of these directives are beneficial because it enhance the establishment and the realization of economic growth and development of the economies. In this regard, the establishment of globalisation can be stated to have significant effect in the establishment of sustainable economic development. Economic growth is sustained and the utilization of nation economic resources is also enhanced. The major obstacle the most countries are facing especially the developing is to attain set goal in the economic growth is to provide enabling atmosphere for proper use and harnessingeconomic resources (Ayyagari, 2011).Globalization has made situation to become worse because economic dispensation undermine and marginalize development economies. Globalization has help more developed countries to develop further and improved the standards of developed countries while other countries especially the developing show minimal economic growth thus poor standard living of people in such countries (Khavul et al 2010).Globalization is the flow of people and resource in the process it has help in the flow of labour in the world. The increase of trade especially the international has promoted sharing of data and information hence it is very easy for individual they get employment opportunity in the other country which not origin (Khavul et al 2010). Ideal depiction of globalisation is the case of fashion industry. This industry faces significant involvement of regional industries because the designs are made in Sydney but the materials for the Sydney industrial are sourced from china. Finally, the assembling of the industries is done in Switzerland. Finally, the finished products are transported back to Sydney for assortment and sale. In this regard, the depiction of the benefits of globalisation and regional integration is highlighted by the development of this example of fashion industry in Sydney. These promote the specialization in the labour market and promote the dependence of world economy (Kim, 2009).
One factor that has characterized globalisation is the establishment of modern technology which has resulted in the development efficient communication. This has resulted in the enhancement of business incentives. (Fuhr, 2001). Its contribution has not only affected rapid expansion of the information sharing over the website or internet but also the increase in the education chances and form part of transnational networks. The information that accessed by few individual it now can be accessed to many people from different background. Faster accesses to information by the citizen make them to understand their rights and become part national activity by ensuring their demands met (Ismihan et al 2008). However, social globalizations bringmany challenges to various governments because the controls what type of information get to its citizens (Kim, 2009). Analysis of the records has highlighted that the consequences of globalisation leads to the improvement of capital flow of the global market. (unalı, 2010). Finally, the attributes of globalisation has proven to be beneficial for the establishment of developed countries. Liberalization has helped it gross domestic products to grow from 5.6% in 1990 to average 77.8 in 1996-7, which was its peak (Mahtaney, P 2007). However, it has maintained its economic growth at average 5-6% in the past six years and at the moment India is the second fastest growing economy after China.
Over the period, significant amount of research has been conducted about the aspect of globalisation. Conduction of these researches has been initiated to help in the establishment of the benefits of globalisation in the enhancement of economic performance. Some of the leading factors in globalisation are the transfer of human capital and the establishment of ideal market for the goods and other commodities. The research conducted above has been beneficial in highlighting the benefits of globalisation. However, the aspects of globalisation and economic development of the emerging economies are not highlighted in the researches conducted. In this regard, the establishment of this research is aimed at enhancing the establishment and contributions of globalisation in the developing economies.
Analysis of the reports has revealed that the development of globalisation has been extremely beneficial for the enhancement of the global economies. Globalisation is crucial because it enhances integration and interdependency between the developing economies and the developed nations. The establishment of the economies has revealed that the consideration of the economies is largely dependent on the contributions of international trade Robert, K (2009). Over the period, trade has been identified as the leading factor of globalisation that enhances regional integration and the transfer of resources and other attributes like the factors of production and human capital. Majority of the developing nations have the attribute of adopting the considerations of globalisation because it encourages economic development and establishment of the economic factors.
Source Robert K (2009).
The depiction of the findings above illustrates the contributions of the aspect of globalization to the development of the national economies. It is evident from the analysis above that developing has continued to experience significant economic development because of the involvement of the factors from international markets. The table shows presentation of results depicting the value of imports as an attribute of globalisation.
The pie chart below highlights the depiction of developing economies and it is evident that the value of manufactured goods is higher in thee economies because majority of the foods are imported from developed nations (Kim, 2009). Developing nations have ideal standards of manufacturing their goods but they have limitation in extracting and manufacturing and this calls regional integration and globalization.
In view of Mbemba (2012), diversification of resources is a concept in business strategy, which increases the range of business products and services.In addition number of organizations use the strategynot only as institutional strengthby lowering organizational risk factors and spreading interest in different areas but also taking advantage of market opportunities, and acquiring both business both horizontal and vertical in nature sectors (Hopkins, 2010). Globalization has help companies in the developed countries to get cheap labour from developing nations. Human capital in the developing nation is not very expensive compare it to developed so multinational companies invests in developing nation to low cost of production through labour. Apart from labour raw material in the developing national are relative cheap and readily available (Ismihan et al 2008).
Globalization has both developed and developing countries in both positive and negative ways. Most of the country or the individual who take the advantage of globalization will benefit and steer economic development faster (Mahtaney, P 2007). Globalization implications in national economy are many. The increase rate of dependence and competition among economies in the world market, thus trading of interdependence concerning trading in goods and services the movement of capital. Internal developments notentirely influenced by country internal policies and market environment. International and domestic policies and economic condition both influence market too (Fuhr 2001). Thus, when government formulating it domestic policies must put the consideration of international condition to ensure economic growth
The establishment of globalization has significantly enhanced regional and economic development of global economies. In this regard, the analysis of the research findings have revealed the overall benefits of globalization but the ideal graphical and tabular benefits of globalization with respect to national economic performance is not readily available. There are significant amount of data regarding the developed nations but the depiction of developing nations has not been adequately documented and this has proven to be a major difficulty in the establishment of results about contributions of globalisation. In order to overcome the difficulties and establish critical research for the project, the analysis of collective national economies of the developing economies was used in the research. The analysis of the collective results of the developing nations has also proven to be critical for the establishment of correct results and it has necessitated conclusion for the research.
The conduction of this research has been immensely beneficial because it has enabled the researcher to understand the provisions and operations of the global economy. In conduction of this research, globalization has been presented as a significant aspect that significantly enhances development of the national economies. With regard to the development of the national economies, regional integration is highly beneficial because it enhances the conduction of trade between various nations and this leads to the development of the national economies. The conduction of this research has proven to be extremely critical because it has enabled the researchers to understand the complexities and disparities facing development of the nations. The contributions of developed nations towards the development of the global economies have been highlighted because they highlight general establishment of the factors of production. The consideration of providing the factors of production to the global has been beneficial in the establishment of world trade and regional development. The global economies have been portrayed as interrelated factors that are dependent on one another for the attributes of trade. Finally, globalisation has been highlighted as the factor responsible for the establishment of development of the global market and global nations.
In the wake of unfolding realities about globalisation, it is extremely beneficial for the global economies to adopt the aspects of globalization because this wills enhance significant development of the global economy. In this regard, various global economies must adopt the provisions of globalisation because the provisions and the recommendations of globalisation provide ideal features that enable the nations to relate and conduct business. The economists in the global nations should adopt the aspect of globalisation because it provides ideal incentives for the nations to exhibit development. Therefore, establishment of globalisation in the future will enhance regional integration and coordination between various nations in the global perspective there leading to increase in development.
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