Group members:

Jonnathan Cabrera
Celina Chacho
Jessica Orellana
Fabiola Sucuzhaay
Beln Suquitana
Lady Vzquez

Teacher:
Mara Gabriela Guevara

Level/Group:
7/1

Topic:
Developing Countries

2017
 GLOBALIZATION DEVELOPING COUNTRIES

INTRODUCTION

The aim of this topic is analyze, compare and give a point of view about the different
economics and participation of the developing countries in the WTO their agreements
that have positively and negatively effects in the globalization with common
characteristics between them. It is a historical process of global integration in the political,
economic, social, cultural and technological fields, which has made the world an
increasingly interconnected place, the rupture of the borders generated a capitalist
expansion in which
This interconnection has helped to improve living standards, reduce poverty and improve
the economy through trade relations that allow markets to expand with exports, but
globalization also, has led to economic inequality, resource degradation for the
maximization of production with cheap labor.
DEVELOPING COUNTRIES
Globalization is a growing economic interdependence among the countries of the world
as a result of the increase in the volume and variety of cross-border transactions in goods
and services, as well as of international capital flows, while the accelerated diffusion of
technology. (Bigman, 2012)
In the following table we can see the list of countries that are in development.

Source: http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014wesp_country_classification.pdf
CHARACTERISTICS OF DEVELOPING COUNTRIES

There must be a certain infrastructure such as means of transport, communication,

available technology and institutional.

Must have savings and a significant investment.

The commercial relations are usually of export of raw material and of import of
industrialized products. The less dependence of foreign industries, the greater the
level of development of the country.

Economics and politics affect each other, and their interaction is vital to the country's
development

Poverty is always a central problem in developing countries, because the economic

benefits are not equitably distributed throughout society. (Faudez, 2008)

POSITIVE
Better living standard
Economic globalization gives governments in developing countries access to foreign
loans. When these funds are used in infrastructure, such as roads, sanitation, education
and social services, the standard of living in the country increases. However, if money is
used selectively, not all citizens participate in the benefits.
Inflow of investment capital
An advantage for developing countries is the inflow of investment capital, since the
poorest countries are labor-intensive, and it causes large companies to set up factories in
these countries, saving large sums of money.
Increase in employment
The arrival of foreign companies to developing countries increases employment in many
sectors, especially for skilled workers.
Developing countries have timely time to comply with their commitments (WTO
Agreements).
One of the strategies that developing country governments can follow is free trade
agreements with a larger country, such as the US or the EU, to take advantage of a more
spacious market. The expansion of the external market stimulates the local economy and
allows to improve both employment and fiscal revenues.
NEGATIVE
Economic inequality between developed and developing countries due to concentration
of capital in developed countries (external capital accumulation).
Capital flight because when the multinational companies decide, they move to other
countries that offer them better advantages in their production.
Developing countries lose sovereignty.
Degradation of the environment by the exploitation of resources.
Many developed countries have abused of the resources of the developing countries to
maximize their production, to the extent that if there isnt moderation, they can be
exploited until they are exhausted.
EXAMPLE
A clear example is Ecuador, thanks to globalization, our markets have expanded and even
more developed markets, where we can reference the Multi-Party Trade Treaty with the
European Union that has been a great help to the exports of the country, where the banana
leader the list followed by shrimp, flowers and other additional products.

CONCLUSION
In conclusion, globalization positively affects the developing countries as it promotes
them to generate strategies to improve the development of the countries, this allows to
obtain alliances with developed countries which help the developing countries with
technology, knowledge and Reduction of trade barriers.
Globalization leads to freer trade between countries. This is one of its greatest benefits
for developing countries. Local industries see trade barriers falling and have access to a
much wider international market. The growth that this generates allows companies to
develop new technologies and produce new products and services.
With Globalization, developing countries can obtain a number of benefits such as:
increased employment, technology transfer, quality and price of goods and services, and
the pressure to develop educational, social and political institutions that improve
productivity and the institutionally.
BIBLIOGRAPHY
Bigman, D. (2012). Globalization and the Developing Countries. USA : CAB international.

Faudez, J. (2008). International Economic Law, Globalization and Developing Countries.

Cheltenham U.K: Northampton, MA.

Kiggundo, M. N. (2015). Managing Globalization in Developing Countries and Transition

Economies. London: Praeger Publishers.

Stallings, B. (2013). Globalization and Liberalization: The Impact on Developing Countries.

Santiago - Chile: United Nations.

Yusuf, S. (2014). Globalization and the Challenge for Developing Countries. N. W Washington :
DECRG.

Hill, C. W. ( 2013.). International business : Competing in the Global Marketplace . Boston:

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