(eWebWire.com) June 10, 2010 — WORLD WIDE WEB, June 10, 2010 (FOR IMMEDIATE RELEASE) —
The earth is now divided into countries and continents after the big wars in the history of man. Nevertheless, there is a massive rising issue of globalization also known
as free trade. Global economy is expansion of economies to the rest of the world which is demolishing industries, businesses and creating financial crisis in developing countries, on the other hand generating economical wealth in developed countries. Global economy needs national regulation and corporation should not have complete freedom. The reason is that the countries which have powerful economy can protect their own nation by limiting the number of imported goods, supplying subsidies and quotas, but developing states getting poorer. Global economy is also producing cultural effects and migration problems in developing countries, which is also a problem for developed nations.


In the past the globalization was mainly spreading from east to west by “science and technology, such as mathematics, printing, gunpowder and rotary fan etc.” (Amartya, 2002). Amartya also says that the west influenced by the east and now the west is influencing the east by the enormous achievements. The culture and the achievements are
exchanged in between countries. The problem is the poor countries are influenced culturally, economically and labour wise.


National Regulation:

National regulation is controlled by the governments to protect their economy and the labour. Oxfam GB notes that, countries specialised in producing luxury goods find that the demand for the products grows in time and they get richer, however countries producing food and non-luxury goods find that the demand for their products remains stable and their income remains the stable. Herman says that the average rate of the developed countries from global trade such as, (U.S., Britain, France, Italy, Germany, Canada and Japan) has gone from 0.4 percent 1971-82, to 4.6 percent, 1983-94. “Even if the poor were to get just a little richer, this would not necessarily imply that the poor were getting a fair share of the potentially vast benefits of global economic interrelations” (Amartya, 2002). The developed countries control the global economy. Free trade is competition between nations and it’s risky. Countries can protect themselves from the effects of free trade by “making foreign goods more expensive by imposing taxes on them, which means consumers have to pay more for them” (Oxfam GB).


Another way of protecting the national economy and the producers from free trade is ‘quotas’, which can be explained as limiting on the number of imported goods (Oxfam GB). Oxfam International Organization gives an example of cotton farmers in USA. The farmers are protected by quota system and the US government makes sure that the
farmers are receiving a stable income. Developed countries like USA can control their economy, but these controls are making the life harder in developing countries to sell
their products globally and this creates inequality between the poor and the rich. The poor countries can not protect their nation from these.


Finally, one of the many methods of governments is providing subsidies. “Subsidies are sums of money given by governments to their producers” (Oxfam GB). The subsidies cut the cost of production, so can the producers sell their products cheaper than the imported foreign goods. Oxfam group notes that peanut butter is popular in USA and some countries produce it very cheaply, because of the climate and wages are low. “They could sell their peanuts to the USA, and then the peanut farmers in US might go out of business” (Oxfam GB). If developed industries supply subsidies to its own peanut butter producers, the other countries would have difficulty to retail their products.


When we think of these issues, we can say that “all countries should be allowed to do this, however the trade rules are unfair” (Oxfam GB). Oxfam group also notes that
some countries are forced to accept goods from abroad, while others protect their markets with import tariffs, quotas and subsidies. The developing nations can not provide all of these to their economy, labour and this shows that there is an inequality. “Nothing significant can be done about these global imbalances unless the United States attacks its own problems” (Fuchs, 2006)


Cultural evolution and migration:


The trade liberalization is altering the cultures in the world. Commonly the developing countries are affected economically. Taylor Cowen notes that, it is a
commonplace that globalization subverting local culture. Generally the developed countries’ culture is influencing the developing ones. Brands like Nike, Mc Donald’s, Adidas, Sony, BMW or the Hollywood movies are everywhere in the world, but we can see almost nothing about developing countries in developed countries. The majority of the market belongs to the developing countries. Advertisement makes difference. The most expensive commercial made by Pepsi in 2005 for $7.5 billion dollars. As en example Nike, the youth of the developing countries wear it widely rather than buying the products of their country, because it’s a brand and they think that it is cool and have that nice logo on products. The reason is that developed nations have the power of media. Steve and Robert say that the purpose of globalization is to integrate the world by trade liberalization and cultural exchange. The same inequality applies to migration. Migration is a real problem in developing countries both Domestic and Internationally. The urban areas in the poor nations are growing and getting better. On the other hand, the villagers are having
difficulty to live, in other words suffering. The reason is the developing governments having difficulty to protect their own producers. The people of such countries find the
solution to move to the urban areas or to migrate internationally, which creates a big impact o the nations’ economy. Production gets slower, so the exporting and importing increases. The biggest consequence is financial crisis occur. As an international impact of migration, Sassen notes that people who migrate to the United States are driven to do so by poverty, economic crisis and over population.


Conclusion:

This essay is marked the main points of Globalization and its effects on developing nations. There is an unfair situation between the developed and the developing world. The global trade is mainly controlled by developed countries, so they use the free trade to help their economy and share the big market. At the same time the developed world pushing the free trade and protecting itself. Nevertheless, developing nations are still busy with fixing their own issues and economy. Globalization is a threat
for the culture and is also creating migration problems for developing countries. Developing world will be struggling until it gets developed. The future is not going to be
much better for the developing states.