O 23
O 24
Clear selection
1 point
35. Integration of many
countries mutually in many
ways like trade,
communication, finance, etc. is
known as
O Nationalisation
O
Liberalisation
O Globalization
O None of these
36. A person who starts a
1 point
Answers
Answer:
Explanation:
There is no generally accepted definition of globalization; most
attempts concentrate on the economic components. An exception is
that of James Rosenau, who says: “Globalization [is] a label that is
presently in vogue to account for peoples, activities, norms, ideas,
goods, services, and currencies that are decreasingly confined to a
particular geographic space and its local and established practices”
(Rosenau, 1997b, p. 360). From this vast array, four separable, but
interrelated, sets of issues are especially relevant: (a) macroeconomics
(trade and finance), (b) microeconomics (the technological revolution
and the production process), (c) culture and the media, and (d)
pressures for democracy and human rights. We will briefly comment
on the most important aspects of each, always with a focus on their
implications for developing countries.
The macroeconomic components of globalization are perhaps
the best known. Thus, the dramatic increase in the value of
international trade, and the fact that trade has grown much faster than
production in the postwar period, are frequently cited as evidence of
globalization. The World Trade Organization (WTO) reports that
world merchandise exports in 1948 totaled $58 billion, while in 1997
the figure had ballooned to $5,300 billion. In 1990 dollars, the figures
were $304 billion and $5,223 billion, respectively. Trade in services
was growing at an even faster rate, such that the combined exports of
goods and services rose from 8 percent of world GDP in 1950 to 26
percent in 1997 (WTO, 1998, p. 120). Data on capital flows do not go
back as far, but the growth rates in the past two decades have
Globalization and Liberalization: The Impact on Developing Countries
10
outstripped those of trade. Private capital flows rose from an average of $107 billion in the 1980-82
period to $1,300 billion in 1996-98 (IMF, Balance of Payments Yearbook, various issues).
Developing countries as a group, including the former communist countries of Central and
Eastern Europe, have become more integrated into these economic flows in the past twenty years.
Table 1 provides a rough idea of the changes. In terms of world imports, developing countries’
share fell during the 1980s (from 30 to 25 percent) and then jumped to 34 percent by the late 1990s.
A similar situation was found with exports from developing countries to the world although the
trend was more muted. In both cases, however, the changing importance of trade in oil masks the
degree of increasing integration.3
Another way of thinking about the rising importance of trade is to
look at the change in export and import coefficients (i.e., trade as a share of countries’ own output).
By this measure, too, international integration has increased as coefficients for developing countries
followed a pattern similar to that just seen: a decline from 24 percent in 1980 to 22 percent in 1990,
then an increase to 28 percent in 1997 (calculated from World Bank, 1999).