Question

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​

Answer 1

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).