Content area
Full Text
Introduction
The impacts of globalisation for developing countries are many. Globalisation has intensified interdependence and competition between economies of the nations in the world market. This is reflected in regard to trading in goods and services and in movement of capital, labour and employment, environment. As a result domestic economic developments of developing countries are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and global policies set up by the global community. Globalisation might bring new opportunities to developing countries such as greater access to global markets, accelerate technology transfer from more developed countries, holds out promise improved productivity and increased efficiency. However, globalisation has also thrown up new challenges to developing countries like volatility in financial market, abuse of labour, environmental degradations, etc. The debates on the benefits of globalisation are fierce. The dispute is focused on the question of whether developing countries can take the benefit from globalisation. The purpose of this paper is to analyse and to provide a deep insight into the nature of this question.
The term of globalisation
Globalisation is a very wide term and used in many different contexts in the literature.
To give opinion whether developing could take benefit of globalisation requires the full understanding of what the term means to its critics and advocates used in the context of this paper.
Financial scholars such as [59] Walker en Fox (1999, p. 2) define globalisation in international finance point of view. They argue that the global integration of the financial markets can be seen as an example globalisation and the process of financial globalisation is the most important part of the process of globalisation. It is possible to gain insight into the general process of globalisation by studying the process of financial globalisation.
Economists see globalisation as the integration and interconnectedness of world economy ([58] Neuland en Hough, 1999, p. 1). [20] Gill (2000) defines globalisation as the reduction of transaction cost of transborder movements of capital and goods thus of factors of production and goods.
A demographics expert such as [35] O' Brien (1992, p. 5) links the definition of globalisation to geographical borders. O'Brien distinguishes between national, international, offshore and global. National transactions take place between businesses...