Since 1992, Thailand Government's policies have been set under IMF agreements. As a result of this, private and government sectors had accumulated millions of US Dollars' worth of loans. But when the economy started to rise since 1997, there foreign investors started investing more in the country. Now, the country has increasingly high FDI due to the tourism industry. In Vietnam, there is a major boom period in the import and export industry. 'And there is a growing anxiety in OECD countries'. The government decided to adopt the state-controlled market economy. The shift in the market was deep and the difference in the rich and poor was increasing in the rural as well as the urban areas. 'The discrepancy between the highest income group and the lowest income group has risen from 5.6 times in 1992 to 7.3 times in 2001. The discrepancy ratio of average living standard between cities and rural areas has increased from 2.3 times in 1994 to 5 times at present.' But now the country is still rising even with so many ups and downs it is flourishing. (Dass, 2002)
(Source: FDI into East Asia, available from http://210.114.108.22/pub/docu/en/ah/pc/ahpc1999009/ahpc-1999-009-010.htm)
FEW COMMON EFFECTS ON THESE COUNTRIES ARE that the local and the small companies also get a chance to improve quality and their standards when the global companies enter the market and it becomes a win-win and 'survival of the fittest' situation. With globalization, all global companies enter different countries and it becomes a situation to attract new talent from the market. In such cases the local companies need more people to work in order to stay in the market. 'In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities. There are a few negative aspects as well of globalization such as people like programmers; bankers have lost their jobs due to the companies outsourcing most of their work to other countries in order to save money. Sometimes instead of making good quality products, it leads to exploitation of workers and in turn cheap and undesirable quality goods are manufactured. Natural problem such as pollution has also been increased with the increase in the amount of factories and industries even in the residential areas. With outsourcing comes a problem of job insecurity which haunts every employee day and night. Though the prediction was that with globalization everyone will get jobs and poverty will reduce however it went the opposite way, the rich become richer and the poor people went poorer.(Buzzle, 2010)
But the developed countries have lost jobs on account of this movement of jobs to the developing world and hence it is a pinch felt by people in the First World'. Another important impact is the foreign trading. All the domestic companies get a new platform and an opportunity of foreign trading and increasing the quality and capturing more of the market share. There is another major impact of prospering. For example China and India, these two countries were backward but with globalization, the quality has improved and foreign trade has also started and this in turn helps in the labor amount also. There is no need to get any labor from America now. All the employees are highly cultured and possess the same technical knowhow just as the other countries. (Craig Nash, 2008)
Read more: http://www.ukessays.com/essays/economics/effect-of-globalization-on-east-asian-countries-economics-essay.php#ixzz3kUphO26w
Since 1992, Thailand Government's policies have been set under IMF agreements. As a result of this, private and government sectors had accumulated millions of US Dollars' worth of loans. But when the economy started to rise since 1997, there foreign investors started investing more in the country. Now, the country has increasingly high FDI due to the tourism industry. In Vietnam, there is a major boom period in the import and export industry. 'And there is a growing anxiety in OECD countries'. The government decided to adopt the state-controlled market economy. The shift in the market was deep and the difference in the rich and poor was increasing in the rural as well as the urban areas. 'The discrepancy between the highest income group and the lowest income group has risen from 5.6 times in 1992 to 7.3 times in 2001. The discrepancy ratio of average living standard between cities and rural areas has increased from 2.3 times in 1994 to 5 times at present.' But now the country is still rising even with so many ups and downs it is flourishing. (Dass, 2002)(Source: FDI into East Asia, available from http://210.114.108.22/pub/docu/en/ah/pc/ahpc1999009/ahpc-1999-009-010.htm)FEW COMMON EFFECTS ON THESE COUNTRIES ARE that the local and the small companies also get a chance to improve quality and their standards when the global companies enter the market and it becomes a win-win and 'survival of the fittest' situation. With globalization, all global companies enter different countries and it becomes a situation to attract new talent from the market. In such cases the local companies need more people to work in order to stay in the market. 'In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities. There are a few negative aspects as well of globalization such as people like programmers; bankers have lost their jobs due to the companies outsourcing most of their work to other countries in order to save money. Sometimes instead of making good quality products, it leads to exploitation of workers and in turn cheap and undesirable quality goods are manufactured. Natural problem such as pollution has also been increased with the increase in the amount of factories and industries even in the residential areas. With outsourcing comes a problem of job insecurity which haunts every employee day and night. Though the prediction was that with globalization everyone will get jobs and poverty will reduce however it went the opposite way, the rich become richer and the poor people went poorer.(Buzzle, 2010)But the developed countries have lost jobs on account of this movement of jobs to the developing world and hence it is a pinch felt by people in the First World'. Another important impact is the foreign trading. All the domestic companies get a new platform and an opportunity of foreign trading and increasing the quality and capturing more of the market share. There is another major impact of prospering. For example China and India, these two countries were backward but with globalization, the quality has improved and foreign trade has also started and this in turn helps in the labor amount also. There is no need to get any labor from America now. All the employees are highly cultured and possess the same technical knowhow just as the other countries. (Craig Nash, 2008)Read more: http://www.ukessays.com/essays/economics/effect-of-globalization-on-east-asian-countries-economics-essay.php#ixzz3kUphO26w
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