Introduction
Antagonists of the process of globalization point out that the effects of globalization on emerging economies and developed states vary. Brittan (8) points out that globalization leads to the enhancement of prosperity in the developed states.
However, it does not lead to deprivation in the developing states. As an illustration of development in the emerging economies, Brittan refers to the development of the Asian states economically. The economic development in the Asian states in the early 21st century led to a decrease in the distorted allocation of profits between urbanized and emerging economies.
Regardless of these encouraging progresses in a number of upcoming economies, several states are still poor and risk marginalization if they do not presently strive to be part of the global financial system. Hak-Min (2) diverges from the analysis of Brittan.
Brittan observes that the allocation of profits between industrialized and countries of the periphery are less distorted. Hak-Min therefore observes that globalization in the integrated global financial system has led to an increase in production of goods and services in a few urbanized states.
A large number of states inherited severe economic tribulations, which led to an increase in the revenue gap between industrialized and countries of the south. In1980 to1990, over 90% of the entire economic contacts of the world was executed in the 25 of the 121 states globally (Hak-Min 2).
The capital of the less developed states in the worldwide investment was less than 1% of the entire global businesses. According to the CIA world fact book, these progressions were due to the expansion of entrepreneurship in the world.
It can be pointed out that three regions including controlled the world trade. These regions include America, Europe and Japan. The three regions subjugated other regions as regards to the worldwide financial system.
The three regions were liable for the 43% of the entire worldwide investment contacts and for 56 % of the entire businesses between 1980 and 1990. The CIA world fact book observes that countries of the periphery do not benefit from globalization.
The IMF examined 42 states covering 90% of the world’s populace to establish a way that would eliminate economic gaps between states. The investigation arrived at the finale that the per capita percentage of manufacturing improved significantly since the beginning of the 20th century.
The difficulty was that the allocation of these resources among states was more tilted even at the start of the twentieth century. The United Nations growth information report of 1992 pointed out that the global profits were still much tilted. The report further stated that the revenue gap improved since 1960.
This analysis is shared by Todaro (29) who pointed out that countries of the periphery acknowledged only a GDP development of 1.1% per year between 1960 and 1982. Similarly, the countries of the south experienced a standard GDP growth of 3.1 per year.
The 2008 IMF report confirmed that the profits of the wealthier section of the earth developed six times more than those of developing states between 1990 and 2000. The report further indicated that growth in the countries of the core increased at the rate of 10% every year between 2001 and 2008.
It is therefore concluded that countries of the south were incorporated into the world financial systems as subordinates. Their profits improved by only 3% in the entire 1990s and remained the same from 2000 to 2008, which cannot be compared with to the affluence witnessed in the west.
This paper will therefore analyze the relationship between developed and developing countries as regards to the world economy. To achieve this, the paper will utilize the world system theory, as well as the Marxist theory. It is noted with concern that the world economy affects the lives of people in various states. The state with a strong economy tends to control the affairs of the world.
The living standards of individuals living in the countries of the core are high as compared to those of individuals subsiding in the periphery. The world systems theory explains the structure of the world economy. On the other hand, the Marxist theory explains why the rich are rich and why the living standards of the poor are ever deteriorating.
The paper will further analyze the results after conducting a research. Research is important since it reveals the underlying issues affecting the lives of people. Globalization has shaped the lives of people differently. The paper will therefore relate the live chances of individuals in different countries to the process of globalization.
For evidential purposes, the researcher collected relevant data using suitable research methods in order to come up with appropriate facts. Various institutions were involved in the process of research, including government agencies, supra-national bodies and non-governmental organizations.
Data Collection
The study was undertaken in both developing and developed countries. Respondents were requested to give their views regarding the effects of globalization to the world economy. The respondents were interviewed in a span of two months.
The study employed quantitative research by using sampling techniques in data collection. Sampling was done randomly where decision makers and strategists were selected at random and requested to fill questionnaires.
The research method was chosen because the researcher wanted to know how many states had benefited from the process of globalization and how often do this process benefit individuals in various parts of the world.
This was aimed at shaping a target audience by establishing what percentage of individuals had specific behaviors, behavioral plans, feelings, and information related to the process of globalization and whether particular variables affect behaviors.
To conduct successfully this quantitative study, the researcher surveyed a huge group of citizens, including governmental policy makers, economic experts and citizens. The researcher utilized an ordered questionnaire that contained mainly closed-ended or forced-choice questions.
In planning and carrying out this quantitative survey, the researcher consulted a survey specialist to assist in designing it. This was undertaken in order to guarantee validity and reliability. Before carrying out the study, a pretest was initiated to enhance measurability and validity. The study was conducted in a professional way in order to answer the research questions.
The Survey was carried out by asking questions to the researched directly that is, face-to-face interaction. Those who could not be reached, mainly policy makers and experts were sent the questions through email while some respondents, especially close friends and relatives, were telephoned. The data collection tool used was predominantly a questionnaire.
The questionnaire was self-administered that is, the respondents were issued with questionnaires and were urged to fill them out. This was mostly so for citizens and other junior administrators with high knowledge and understanding.
The researcher administered the questionnaire through the interview system to some citizens and policy makers who had little comprehension concerning the content of the questionnaire (Creswell 15).
A survey design with a standardized data collection tool was selected because of a few reasons. Firstly, when the survey entails a convenient sample, data can be gathered and examined quite rapidly.
When the survey consists of a statistically suitable random sample, the outcome of the sample can be generalized based on the targeted population if the reaction pace is sufficiently high. Surveys can offer consistency meaning they provide a repeatable course for preparing agendas and messages.
Surveys can be unspecified, which is helpful for insightful subjects such as this one. Just like qualitative study techniques, surveys can comprise of illustrative material and can be utilized in pretesting the samples. For this case, the findings can be generalized past the accomplice cluster.
Data Analysis
Responses to interviews and questionnaires were analyzed using thematic analysis. This tool is considered to be highly inductive, as themes are not imposed on data by the researcher but rather emerge from data itself. In this method, data from different people is to be compared and contrasted.
Similarities and differences are identified in a process that continues until the researcher is satisfied that no more new issues or themes are arising. Thematic analysis was chosen because it allows rich, in-depth, and detailed meaning to be derived from collected data.
It involves coding of data according to emerging themes (Crotty 7). Thematic analysis analyses the descriptions line by line, allowing rich in-depth data to be derived from responses. This tool categorizes the findings and conclusions from various sources according to the emerging themes, making it possible to identify similarities in the meanings and explanations from the various respondents.
The researcher is also able to highlight the main issues emerging from the responses. Line by line analysis allows the researcher to highlight matching patterns in the text from different responses allowing quantification of data.
Findings
Globalization has played a key role in spreading food habits and products across boundaries. Countries are able to access what they do not produce. Their products have ready markets through exports. African countries producing agricultural commodities such as tea and coffee are able to export them in large quantities to the west and in turn earn foreign exchange.
Studies show that Contact between the west and the north could generate knowledge as regards to food products that are imported by local populations. It is known that traditional foodstuffs spread to other parts where they could not be produced and became vital food staples.
The same kind of benefit could result from learning about and exporting animals from one part of the world to another (Fukuyama 17). The opportunity to learn about basic goods beyond trade items could easily necessitate wider ventures. However, research shows that some states benefit more from this relationship mainly because of their financial power.
The world systems theory suggests that the world economy is divided into three. There is the core, the semi-periphery and the periphery. However, it should be noted that the global economy is a single capitalist economy.
The living standards of citizens are determined by the global events. The peripheral states are marginalized hence affecting the living standards of their people. The core on the other hand is the manager of the global economy. The core controls MNCs, the banking sector and major investments.
The world has been able to establish satellite systems, which has resulted to an improvement in the international phone calls. It was a century ago that a British economist noted that the residents of London could order products by phone.
Through globalization, it is possible for news relating to sports, business and entertainment to be accessed worldwide. Phone facilities provide domestic and international calls at reduced rates.
This makes it very easy for one to make an order of an item from anywhere as long as he/she has a phone. Once again, the core states are better placed in terms of communication hence influencing the behaviour of developing states.
With growing industries in many parts, consumer and industrial needs have encouraged changes in the market, which in turn affect the environment. For instance, a region trying to meet the demands of consumers in other parts of the world has ended up expanding plantations that have further reduced local vegetation thus damaging water supplies.
This has introduced serious environmental changes in many parts of the world. Through globalization, a series of developments in the transportation sector have speeded up the movement of people and goods. Air travel has allowed more people to go long distances in order to transact businesses.
It has been observed that by early 21st century, almost a hundred million passengers in the United States were involved in over eight hundred thousand flights each year. Statistics have shown that, between 2002 and 2007, China has expanded its exports by four hundred percent.
Many producers of raw materials depend heavily on global markets. For instance, Russia has been selling its inputs abroad. Similarly, Chile’s rise as an economic power depended heavily on exports of fruits and vegetables to North America and Asia.
Over-dependence on exports has revolutionized many aspects of daily life. In many countries, food from around the world is available hence popularizing, as well as standardizing foreign restaurants in many big cities. Similarly, eating habits have changed hence modifying national food traditions in some countries.
Conclusion
Globalization involves forces that are beyond one country’s control and therefore reduces the power and scope of the state. It is associated with the declining regulatory role of the state. Globalization is the widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary social life.
On the other hand, globalization has introduced a new way of reasoning whereby the countries think globally and act locally. The way this principle works is that the functions related to technology, information, brand development and finance are managed on a global scale while functions related to manufacturing, sub-contracting and marketing are managed on a regional or local basis to increase effectiveness.
In other words, the new technological innovativeness has led to a global-localization of production. Countries of the periphery have not benefited much from the process of globalization. As can be observed from the world systems theory, the developed nations subjugate and perpetuate the developing states.
The world systems theory suggests that the relationship between the core and the periphery is expected to remain the same. As it can be observed in the current international system, the gap between the rich and the poor states is expected to widen.
The living standards of people in the third world are expected to deteriorate. Therefore, policy makers should engage in research similar to this one to establish the causes of disparities between the rich and poor states. This research would be used as a basis of conducting a large-scale study that would come up with more findings.
Works Cited
Brittan, Leon. Globalization vs. Sovereignty? The European Response. Cambridge: Cambridge University Press, 1998. Print.
Creswell, John. Research design: Quantitative, qualitative, and mixed methods approaches. 2nd ed. Thousand Oaks, CA: Sage, 2003. Print.
Crotty, Michael. (2003). The Foundations of Social Research: meaning and perspective in the research process. London: Sage, 2003. Print.
Fukuyama, Francis. The end of History and the Last man. New York: Free Press, 1992. Print.
Hak-Min, Kim. Globalization of International Financial Markets: Causes and Consequences. Hants: Ashgate Publishing Limited, 1999. Print.
Todaro, Michael. Economic Development in the Third World. 3rd ed. New York: Longman, 1985. Print.