South Africa stands as a semi-sephere nation making Its economy has been the centre of Africa and one of the strongest in the world and its economic realisation has been due to its effective and successfully eco integration with other parts of the world. Therefore the gap between the elite and the underprivileged seems to be a never ending road, eventually leading to inequality. This is evidenced in the recent birds flu disease which has infected most Asian countries over a short time frame. If anything the measure of a country's economic strength can be said to be a comparison of that county's economy with others. It is undeniable to say that globalization has resulted in both positive and negative effects which must be addressed accordingly. The first is the scale and speed with which it is occurring and the way technology especially in communications and transportation is changing the world. None of these policies is new, and most African countries have been implementing them for some time.
Today, international trade has broadened its horizon with the help of business process outsourcing. Also, economic thought itself has evolved over time, toward the general acceptance of the fact that outward- oriented and open economies are more successful than closed, inward-looking ones. An increasing number of Indian students go to higher education in countries such as Britain or the United States. Words: 1529 - Pages: 7. The process of globalization is considered to be erasing transnational boundaries with people sharing common goods and services or adopting the cultures of another culture. These countries also gain from globalization as it offers access to foreign capital, global export markets, and advanced technology; while breaking the monopoly of inefficient and protected domestic producers. At the same time, they are also reorienting expenditures away from wasteful outlays towards improved public investment and spending on key social services, particularly health and basic education.
The Seek For Cheap Labor Globalizations increases of non-skilled and skilled jobs from developing nations to well developed countries as huge corporations seek for cheap labor. As a result, economic success in today's world is less a question of relative resource endowments or geographical location than it used to be in the past. This natural and ethnic diversity have generated many ways of interaction and use of the wild species, as to an intense domestic adaptation that has become an important support for the diet of Guatemalans and of many habitants of many other countries. In addition, the Bank's soft window affiliates - the African Development Fund and the Nigeria Trust Fund - provide concessional financing to low-income countries that are not able to sustain loans on market terms. Consequently, more than at any time previously, individual countries in all parts of the world are liberalizing their exchange and trade regimes in the conviction that this is indeed the best approach for growth and development. It prompts visions of large multinationals dominating the world in pursuit of ever-higher profits. Today it is viewed as a process that continuously strives to integrate economies and societies by means of exchange and communication network.
The economic growth has been due to the global economy Smith,2001. With the increase in globalization; new, postmodern issues presented themselves to western civilizations; issues which were not encountered since the Romanization period of Europe. The modern age of globalization started with the at the end of the 18th century. More importantly, no country has managed to lift itself out of poverty without integrating into the global economy. Disadvantages Some local businessmen in African countries prefer to save their money in foreign bank accounts hence rendering a blow on local currencies. And the regional organizations should seek to push through reforms in the areas of the legal and regulatory frameworks, financial sector restructuring, labor and investment code reform, and exchange and trade liberalization that seek to reach international standards as quickly as possible.
He describes the relationship of power between countries manifested as the superstructure and sub structure. Second, what are the advantages and disadvantages of integration into the global economy? It simply means that the world has become integrated economically, socially, politically and culturally through the advances of technology, transportation and communication. Currently, globalization is at its peak. Words: 3242 - Pages: 13. Some firms and companies from the west which invest in Africa return all their revenue to their mother countries. This was a regulatory party who acted as a mini union for the coffee farmers who basically had no voice to the state. Globalization is a term that has been defined differently by all who use the word.
Second, what are the advantages and disadvantages of integration into the global economy? Tackling Africa's trade problem requires a two-pronged approach. The shifts in the coffee supply and demand are not predicted by. It is not a secret that the more education people have, the better standard of living they will enjoy. Countries with a poor or inconsistent policy record will inevitably find themselves passed by, both from expanding trade and from private capital flows for development. Globalization has had a positive impact on the South African society. Before globalization, getting funding for an idea in an underdeveloped country was extremely difficult.
For example, developing countries in Africa did not have an extensive land-line phone network before. Politically, globalization has resulted in the affluent and efficient government system adapted through integration of political systems party which holds fair economies making the government of South Africa, accountable and durable to stable economies. Loss of Culture Because entire things today are well built and well advanced, the former culture and tradition of the people disappeared. Third, transaction costs in Africa tend to be high for a number of reasons, including high tariff and nontariff barriers, high international transport costs, poor telephone systems, and unreliable infrastructure facilities for essentials like water and electricity. Global marketing has made known to the customer the existence and benefits of a product in the market giving the product an identity. Finally, the restructuring of many African economies is gaining momentum.
Fifth, what policy measures must Africa put in place to derive maximum benefit from globalization? Globalisation and technological advancements are delivering and increasing access to the world and subsequently subjects should reflect this global outlook. The road to a global economy Road transportation accounts for the largest share of world freight. North American examplesinclude Boeing, Coca-Cola, General Motors, Google, Apple andDuPont. While Africa is clearly on the right track, there is still some way to go. All countries in the Global North and Global South must work altogether to spread its benefits. Africa's trade is, however, concentrated in a narrow range of primary commodities, and, within this narrow range, Africa's market share has been shrinking. Many African countries will also have to undertake a comprehensive reform of the civil service, aimed at reducing its size while enhancing its efficiency.
According to definitions of globalization, the primary characteristics that it possess include movement of people and goods, improvement in technology and telecommunications, diffusion of knowledge and a spurt in multinational corporations. But this very phenomenon also makes it possible for these entities to strengthen their local identities. One example is the bamboo furniture industry in India. First, having escaped the worst effects of the Asian crisis, should it still pursue globalization? Poor countries in the Third World may have to cut down more trees so that they can sell wood to richer countries. First, globalization is not a panacea.
Industries are using natural resources by means of mining, drilling, etc. Today, those in power have to consider external factors in their economic recovery strategies. Think of North Korea or many countries in Africa. Lessons from globalization The growing connectivity makes it possible for Africa to learn from experiences around the world. All types of goods ranging from Coca-Cola, Sprite, Louis Philippe shirts, Marie Claire bags, Police sunglasses, to Adidas and Nike shoes are all available in every market globally, all credit to globalization.