by Costas Chryanthou

Created on: August 03, 2008

Globalization as a term means that there are leading products and companies producing products and being able to export and serve consumers globally. In terms of globalization in some respects a level of product adaption will have to be made from country to country which differs slightly to the products domestic source of origin.

The way a global product affects economic health depends if the country concerned is exporting or importing goods from elsewhere. Where exports exceed imports the national economy is boosted by having higher levels of economic growth and in terms of company revenues means that the countries exporting goods provides more employment and national income levels.

Consumers of Less dominant countries can be categorised as net importers, countries that rely on imports. The effect this plays upon the economic health of less dominant countries is that the income of those nations is spent buying goods and services of more powerful countries. Consumer spending on foreign goods reduces the need for domestic output and labour to a certain extent as less effective goods produced domestically there will be a reduced need.

Less dominant countries might enforce trade tariffs and restrictions using quota systems and enhanced bureaucracy to limit the number of foreign goods entering into a given nation.

Globalization has helped create jobs and opportunities for countries that have good access to raw materials and cheap labour. Countries such as China, India and some other Asian countries have had significantly improved economic fortunes made as a result of globalization. Jobs have been created substantially, factory output and productivity has been raised and trade flows of inward investment from wealthy overseas corporations has seen the South East Asian Industrial, Textiles, and most recently agricultual industries boom.

The result of China, South Korea, Taiwan, India, more inclined to agree to inward investment from overseas nations. Though I feel that in certain areas of industry political regimes and political leaders of less dominant countries have their own level of foreign ownership stake rules, which prohibit say an American company owning a substantial stake in say a Chinese manufacturing business, or where an American or British firm are prohibited in owning a substantial market share in a given industry. I feel that perhaps the rules are more restrictive in that certain industries foreign companies are not allowed to invest at all.

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