How do you think the global economy has played a role in bringing about changes in the

economy within developing countries, ie., how have developing country economies been

shaped by global rather than national economic forces? (It may be useful here to use one

country as an example.)

There has been various effects that have been realized by the various changes in the global

economy over the years. Globalization has causes global economic, political and cultural

integration. During this time, the world has become a small village where borders have been

broken down between various countries. At this juncture, transport, communication and

industrialization have been led to a point where national borders have been led to a situation

where they appear to be too limiting for economic activity. Globalization has played an

important role in developing countries. Globalization has various benefits for developing

countries such as economic progress, technological developments, political influences,

improvement of health systems and social and natural environmental factors.

Over the years, globalization has created new opportunities for developing countries. In the

recent past, technology has been the greatest promise for development in developing countries

especially in the Sub Saharan Africa and the Middle East. These countries have been offered

access to developed countries market, growth and improved productivity and higher living

standards. However, globalization of the economy has not always brought about success in the

economy. There have been several challenges due to globalization such as environmental

deterioration, instability in commercial and financial markets, and increase in inequity across and

within nations.

When considering the effect of globalization, developing countries have to consider how the rest

of the world affects their economic growth. This helps in solving the poverty problems of these
countries across the economy. Developing countries cannot share the same economic growth that

developed countries have had. However with the help of global organizations such as the World

Bank and the International Monetary Fund, developed countries have gone through the necessary

market reforms and radical changes that have made them have access to financial help including

large loans. Many developing countries have been able to open their countries by removing

tariffs and freeing up their economies. Developed countries have been able to invest in the

developing nations therefore creating job opportunities for the poor. An example would be the

effect of the rapid growth in China and India causing world poverty to decrease. From the

understanding of global relations, globalization has improved the relationship between developed

and developing countries. This relationship has been made stronger with developing countries

depending more on developed countries. Developing countries have been depending more on

developed countries for resource flow and technology while developed countries depend on

developing countries for raw materials, food and oil and a market for processed goods.

Globalization has enabled goods, services and people to be transported easier and faster as a

result of free trade between countries. It has also decreased the possibility of war between

countries. Global relations have made friendships that have made it easier for different countries

to interact with each other therefore enhancing efficient communication between countries and

companies within countries. These trade advantages have helped raise free trade between

countries and therefore leading to growth in the economy. Globalization has brought about a

positive effect in the health and education sector especially during the COVID-19 pandemic.

During these period, countries have been able to offer effective solutions to the economic, social

and health issues that have arisen due to the pandemic.