Exceptional globalization of the world economy has taken place. The increasing integration of nationwide economies into global markets promises to keep to alter significantly the volume and personality of international source flows. However, it still remains unclear how many middle-income and low-income LDCs will benefit from the globalization of international marketplaces especially. For a number of reasons, the full participation of many poor nations in the global economy is yet to be realized. At a time when national markets are checking, it is ironic that some global financial markets remain restricted. But even in cases where developing countries are straight mixed up in physical, technical, and financial globalization process, the implications for long-term development are ambiguous.
Money and information can now be instantly passed from one comer of the earth to another. Multinational companies are creating global factories with both horizontal and vertical integration spread over many countries. And a small group of newly industrializing countries in East Asia, now expanded to add China, has captured the lion’s share of LDC international flows of goods and services. The consequences of such globalization are threefold.
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First, the power and impact of specific nation-states, especially many of those in the developing world, is weakened. LDCs that are not linked for some reason to the new buck, yen, or euro-dominated local trading blocs in North America, the Pacific Rim, or Europe, respectively, face difficult times ahead particularly.
Third, a stunning manifestation of the growing inequality of nations in an era of quick global transmission of information is the tremendous upsurge in international, illegal migration from the indigent South to the industrialized North. In the same way capital has become more internationally mobile, so has labor. But unlike the movement of capital, the motion of unskilled Southern labor across Northern borders is not necessarily a welcomed incident. In fact, some residents of the industrialized world treat this trend as a risk to their economy, not to mention their culture and “way of life”. As a total result, “human smuggling” has used a terrible toll in lives lost and the other suffering as a result of corrupt profiteers.
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