Globalization to a Developing Economy: a Pain or a Gain

Abstract

This paper examines the concept of globalization and analyse the effect on both developed and developing economies to ascertain the actual impact on both economies. Arguments of supporters and opponents of the concept were discussed and empirical data discussed to arrive at who is actually benefitting from the concept. It observes that the principles on which the concept is based is not favourable to the developing countries for obvious reasons.

The study supports the view that there are loopholes in the processes which is being abused by mostly the multinationals to exploit the developing countries. It concludes that the concept is capable of positive impact, but will need to be modified by promoting institutions to turn the pain of the developing countries to gain.