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1. Effects of Globalization to the
Economy, Developed States and
Developing Countries
Members:
Cedric John Cawaling
Adhril Olores
Krizza Mae Oriola

2. EFFECTS OF
GLOBALIZATION
TO THE ECONOMY

3. What Is an
Economy?
According Kenton(2019)
• An economy is the large set of inter-related production
and consumption activities that aid in determining how
scarce resources are allocated.
• In an economy, the production and consumption of goods
and services are used to fulfill the needs of those living
and operating within it.
• Market-based economies tend to allow goods to flow
freely through the market, according to supply and
demand.

4. The developed states enjoys the advantage in
the balance of opportunities and threats. In contrast,
the underdeveloped and developing countries remain
dependent on developed countries. They stay behind
poverty and remain in competition with other poor
states in the export of agricultural produce and
minerals.
EFFECTS OF GLOBALIZATION TO THE ECONOMY

5. (Fariooz Hamdi, 2015) Globalization has helped
less developed countries deal with the increasing
economic development in the rest of the world. This
has solved the poverty problems in these countries.
In the past this was impossible for less developed
countries due to trade barriers. With globalization,
the World Bank and International Management
encouraged these less developed countries to go
through market reform.

6. Many countries began to move towards these
changes by removing tariffs and free up their economies.
It is clear to see that globalization has made the
relationships between developed countries and developing
nations stronger, it made each country depend on another
country. According to Thirlwall (2003:13) "Developing
countries depend on developed countries for resource
flows and technology, but developed countries depend
heavily on developing countries for raw materials, food
and oil, and as markets for industrial goods".

7. Despite its benefits, the economic growth driven by
globalization has not been done without awakening criticism.
The consequences of globalization are far from homogeneous:
income inequalities, disproportional wealth and trades that
benefit parties differently. In the end, one of the criticisms is
that some actors (countries, companies, individuals) benefit
more from the phenomena of globalization, while others are
sometimes perceived as the “losers” of globalization. As a
matter of fact, a recent report from Oxfam says that 82% of
the world’s generated wealth goes to 1% of the population.

8. EFFECTS OF
GLOBALIZATION
IN DEVELOPED STATES

9. What Is a
Developed State?
A developed country is a sovereign
state with a mature economy and technologically
advanced infrastructure compared to other
nations. Several factors determine whether or not
a country is developed, such as its political
stability, gross domestic product (GDP), level of
industrialization, social welfare programs,
infrastructure, and the freedoms its citizens enjoy.

10. To gain upper hand in economic
competitiveness, developed states adopted new
policies. Some developed countries privatized their
publicly owned companies and pruned down their
budget deficits to manageable levels, reduced their
taxes, and abolish shoddy stock market because of
international competition and monopolies.
EFFECTS OF GLOBALIZATION IN DEVELOPED STATES

11. Developed countries are the markets of Multi-national
corporations which in turn multinational corporations are
required to purchase or ask them to buy domestics
products from 8 domestic suppliers. Because of many
industries in developed countries, they are unlikely be
controlled by other states in terms of economy. They
cannot be forced by external economic forces, besides they
are the ones controlling economic forces. However, along
with this is the depletion of natural resources and
destruction of the environment is much likely.

12. (Pologeorgis, 2021) Developed countries, which
feature more productive agricultural sectors, higher value-
added services and manufacturing sectors, and higher per
capita consumption, accrue certain types of benefits from
the rapid structural changes that are currently affecting
the system. As a result, these countries are getting richer
and more developed at a higher rate than developing
countries, generally widening the gap between the haves
and the have-nots.

13. Developed countries have tended to accrue
more net benefit from globalization than developing
countries. There are exceptions, such as developing
countries that are taking their first steps towards
increasing agricultural and health-based productivity.
The greatest net benefit, however, has gone to the
most powerful economies at the top of the
development index. (Pologeorgis, 2021)

14. The network effects of technology, financial, and
energy centers — for example, Silicon Valley, New York,
and Houston, respectively — creates a pull of talent and
capital that continues to strengthen and benefits the
United States. These regions, and their host countries,
are able to economically perform at far higher levels than
internal capacity would allow as a result of the distributed
international resource pool facilitated by the group of
catalysts we broadly call globalization.

15. EFFECTS OF
GLOBALIZATION
IN DEVELOPING COUNTRIES

16. What Is a Developing
Country?
Also called a less-developed country, also
known as “LDC,” is a nation with a lower living
standard, underdeveloped industrial base, and low
Human Development Index (HDI) relative to other
countries. There is no universal, agreed-upon criterion
for what makes a country developing versus developed
and which countries fit these two categories, although
there is general reference points such as a nation's GDP
per capita compared to other nations.

17. The impact of globalization in developing countries in terms
in economy is far greater than in developed countries. Developing
countries only rely on single or less export product. They are not
diversified. Middle East for example, their product is mainly oil.
Without oil revenue their economy will falter. The Philippines also for
example rely on labor aspects and some agricultural products, once
that developed countries close its doors then the economy will falter
too. Some developed countries used this scenario to demand political
agenda from other states.
EFFECTS OF GLOBALIZATION IN DEVELOPING COUNTRIES

18. Globalization is playing an increasingly important role
in the developing countries. It can be seen that,
globalization has certain advantages such as economic
processes, technological developments, political influences,
health systems, social and natural environment factors. It
has a lot of benefit on our daily life. Globalization has
created a new opportunities for developing countries. Such
as, technology transfer hold out promise, greater
opportunities to access developed countries markets, growth
and improved productivity and living standards.

19. The benefits of globalization are true for it has
produced favorable results just as often as it has caused ruin.
It does lead to increased stability and internal security. It does
lead to better human welfare. And it does share the luxuries of
the developed countries. However, much of globalization is
admittedly a waiting game; it is truly a time-consuming
process. The decision is whether the ends justify the means,
whether it is worth the wait, whether the long term benefit
outweigh the short term detriment. Economic globalization is,
at its basic, an investment for the future.

20. However, it is not true that all effects of
this phenomenon are positive. Because,
globalization has also brought up new challenges
such as, environmental deteriorations, instability
in commercial and financial markets, increase
inequity across and within nations. (Hamdi,
2015)

21. THANK YOU
FOR
LISTENING!