Globalization to the
poorer nations carries along both pros and cons, as stated by a saying every
good thing comes at a cost, so is globalization. At one hand globalization helps
strengthen the weaker nations at the same time it also causes a threat to the
businesses that are operating locally. If we look at it from solely a business
perspective the globalization and liberalization together creates a number of employment
opportunities. The reason behind the big giants globalize is one to get into
the untapped markets but at the same time to cut down their operating costs. The
main reason for the corporate giants and even the medium scale industries for
entering the poorer markets is that they get cheap labour and thus reducing the
cost at which they could have produced the goods locally. This at the same time
provides ample amount of employment opportunities to the residents of the
poorer nations and ultimately helping them build a better standard of living.

Globalisation lowers the
level of trade barriers that existed between two nations and thus opening up
gates for free trade to set into picture. The free trade of international goods
in a poorer country provides its residents with a variety of goods to choose
from. At the same time since the companies try to gain a competitive edge over
its rivals and thus keeps its pricing very competitive and compel the existing
players to also rework on their pricing. In the whole process the customer gets
a wide range of products at a really affordable price. Also the domestic
players in the industry reaps the benefits of globalization. With free trade established
between the two countries the manufacturers also get an opportunity to showcase
their products to the foreign markets and ultimately penetrating it by establishing
proper export links. Since the big companies are entering into the local market
of the poor countries it certainly helps in improving the economies of scale prevalent
currently. Since globalization involves quite a bit of investment the poorer
countries want to cash it in since it helps the nations increase their GDP and
thus reflecting growth. The major example of this can be countries like China
and India. The GDP of China measured in terms of the purchasing power parity has
moved from 4.01% in 1990 to a whopping 17.86% in 2016. Similarly in India it increased
from 3.6% to 7.3% since the 1990’s. These examples helps us find out that how relaxation
of their foreign policies and letting globalization set in has helped in building
a global economy.

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