Globalization and Its Biggest Winners and Losers Essay

Globalization and Its Biggest Winners and Losers - Essay Example Globalization is characterized by many factors including increased international trade, multinational companies whose activities are based in several nations, great dependence on the global economy and free movement of capital goods and services. Although associated with many economic benefits to the participating nations, research has indicated that some nations fail to enjoy 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 led 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 developed and undeveloped nations is a clear revelation of this reality (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 other nations in Europe and some parts of Asia. Undeveloped nations are mainly found in Africa and some parts of South America. Developed nation’s economies are largely industrially driven as opposed to undeveloped nations who mostly rely on agriculture as their main economic drive. The disparities evident in export levels between developed and undeveloped nations is a typical example how developed nations gain 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 standards in poor countries indicated living standard were worse than it was a decade ago. According to this report a fifth of the world’s 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 majority of populations in poor countries still live below poverty levels chara cterized by widespread unemployment, a big population in developed nations are employed and they live above poverty levels (George, 2007). Globalization has led to opening up of market base, which has in turn triggered increased industrial production of various 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 growth 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 less developed nations, the rate of unemployment is much lower in developed nations due to ever-growing industrial sector. The level of innovativeness is also greatly supplemented by the wide variety of industries present in these nations (Roy, 2005). Over dependence of undevelo ped 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 played a crucial in